Government admits ‘challenging’ situation after firm charged and passed on fees without legal authority
Thousands of people applying for visas in the UK have been unlawfully charged for language tests, the government has disclosed, but the Home Office is continuing to demand the fees because it needs the money.
The Home Office minister Seema Malhotra made the admission to a Lords committee as the government scrambled to address what it described as a “challenging” situation.
A company called Ecctis Ltd has been charging fees for language tests and qualification assessments to fund visa services since 2008 without any legal authority, leaving the system open to challenge in the courts.
The discovery was made when the government sought to renew the company’s contract this year.
The Home Office is now seeking
Ministers are also looking at either establishing a “restitution” scheme, whereby millions of pounds could be reimbursed to visa applicants, or tabling retrospective legislation to avoid a payout.
The House of Lords secondary legislation scrutiny committee, which is examining a proposed change to the law to make future charges legal, said it was shocked to discover that in the meantime the Home Office was continuing to bill visa applicants for the services.
Malhotra had informed the committee that it was “important to note that suspension of charging for these services would have significant potential impacts on the public purse”.
She wrote: “Given the options under consideration and the significant impacts associated with suspending charging for these services, the department has determined that fees should continue to be charged until such a time as the position in respect of previously charged fees is confirmed.
“This will also serve to ensure there is consistency of treatment in both the fees that have been historically charged and those charged in the period between the issue being identified and the appropriate legislation coming into force. The department, however, appreciates the challenging nature of this position given the lack of extant legal authority for the charging of these fees, and is working at pace to clarify the position.”
The government has informed the Lords committee that it does not know how many people have been affected nor what the cost of refunding them might be but that Ecctis earned £50m from such fees over the last three years.
The Lords committee has criticised the new government for its lack of transparency over the situation and its treatment of visa applicants.
It wrote: “We are shocked that the Home Office puts more weight on consistency with the past approach – which is known to be unlawful – than on consistency with the law as it stands today. We welcome the Home Office considering options for those who have paid inappropriately in the past, but we are concerned about the treatment of current users paying fees now.”
Source: https://www.theguardian.com/politics/2024/oct/25/home-office-fees-language-tests-ecctis-ltd
