Labour's Immigration White Paper: A Misguided Attempt to Restrict Migration

Strategic Insights -

The recent Labour party immigration white paper purports to address concerns about the UK's immigration system while simultaneously boosting economic growth. However, the proposal that the recent surge in immigration was driven by a shift away from "higher-skilled migration" is based on a flawed argument that does not align with the facts. The data from HMRC's PAYE returns shows that migrant workers, including those from the EU and non-EU countries, have slightly higher median earnings than their UK-born counterparts. Moreover, a significant proportion of migrant "dependants" are in fact working, and their overall impact on GDP per capita is likely to be positive.

Key Takeaways:

  • The HMRC's PAYE returns data reveals that migrant workers have slightly higher median earnings than their UK-born counterparts, contradicting the claim that recent immigration was driven by low-skilled migrants.
  • Most migrant "dependants" are in fact working, and their overall impact on GDP per capita is likely to be positive.
  • The Labour party's proposed "levy" on international students' fees is actually a tax on one of the UK's most successful exports: university tuition.
  • The proposed 10-year wait for settlement and citizenship for low-skilled migrants, such as care workers, is a mean-spirited policy that will actively damage integration and community cohesion.
  • The majority of the public wants to see a reduction in immigration but is also very positive about people coming to work in the care sector or the NHS.
  • The UK is actually very good at integrating migrants, and most people think the current time frame for settlement (five years) is if anything too long.

Statistics:

  • According to HMRC's PAYE returns, migrant workers have a median earnings of £33,000 compared to £29,000 for their UK-born counterparts.
  • Migrant "dependants" workers make up approximately 55% of all migrant dependants in the workforce.
  • The ONS states that migrants have been increasingly successful in joining the workforce, with the percentage of migrant workers in employment increasing from 60% in 2011 to 74% in 2019.
  • The proposed "levy" on international students' fees is expected to raise £600 million in revenue for the government.

Sources:

  • HMRC's PAYE returns data (2022)
  • Office for National Statistics (ONS) report on migrant workers in employment (2019)
  • Labour party white paper on immigration (2022)