Migrants bring net profit to UK – let’s silence the myths and talk about the real problems

07 November 2013

By Sarah Glenister, IER Staff

Immigration has been a hot topic for years, and one that is unlikely to disappear anytime soon, but new research shows the perception of ‘benefit tourism’ is a myth indicates the dialogue on this subject needs to change.

A study conducted by Professor Christian Dustmann and Dr Tommaso Frattini of University College London’s migration research unit demonstrates that migrants arriving in the UK since 2000 have made a net contribution to the public purse of £25 billion and are 45% less likely to claim benefits or tax credits. They are also 3% less likely to live in social housing.

Migrants arriving from European Economic Area countries (Norway, Iceland and Liechtenstein in addition to EU member states) contributed around 34% more in taxes than they received in benefits between 2001 to 2011, the research showed. They were also highly skilled and more likely to have a university degree than the British. Meanwhile, people arriving in the UK from further afield paid about 2% more to the Treasury than they received.

“Our research shows that … the UK attracts highly educated and skilled immigrants,” Professor Dustmann stated.

“What’s more, immigrants who arrived since 2000 have made a very sizeable net fiscal contribution and therefore helped to reduce the fiscal burden on UK-born workers … Given this evidence, claims about ‘benefit tourism’ by EEA immigrants seem to be disconnected from reality,” he added.

The research follows the release of statistical evidence from the European Commission that flew in the face of the government’s line that migrants are attracted to the UK in order to take advantage of the welfare state. Despite this, the Home Office continues to refer to ‘benefit tourism’ in support of its new Immigration Bill.

But the Institute of Employment Rights (IER) believes the real issue of immigration is not a question of border control, nor of public finance, but of the exploitation of a foreign workforce that is particularly vulnerable. Current public policy and employment law provides too many opportunities for the exploitation of workers by unethical employers, which applies a downward pressure on the living standards of us all.

In our 2005 report Labour Migration and Employment Rights, it was argued that workers should not be seen as a commodity like any other. The cost/benefit approach favoured by New Labour, and the restrictive policies preferred by the Conservative Party were both criticised, and a rights-based model was proposed. This would force focus onto the treatment of workers by employers and how exploitation creates many of the problems associated with immigration – or at least those problems which are not in themselves myths.

This is especially important in light of recent sociological research showing that the perceived failure of migrants to culturally integrate is false. In fact, a growing proportion of minorities in the UK are born of parents of differing nationalities, showing that migrants are integrating into British culture in the most intimate of ways. However, segregation does continue, but it is economic segregation, not cultural, showing that migrant workers continue to receive lower wages.

On Wednesday 20 November, the IER will launch an update on the 2005 book called Labour Migration in Hard Times at a conference of the same name. The authors of the new publication – the UK’s leading experts in the field – will present their findings at the all-day conference, which is particularly timely as the Immigration Bill proceeds through parliament.

Immigration must not be allowed to become an issue of the right-wing, as there are measures that can be taken to reduce exploitation and the sinking living standards that accompany it. We must combat the government-peddled myths on migrant workers, which risk boosting support for a knee-jerk reaction to cap migration. This could easily reduce skilled labour in this country and do untold damage to our economy. It is up to us to educate ourselves on the alternatives and to raise awareness of them.

To make this possible, the IER is offering a huge 45% discount on entry to the Labour Migration in Hard Times conference when you quote the discount code: 2450. Click here to find out more.