Thursday, December 19, 2024 - Keir Starmer’s strategy to reduce UK net migration by boosting domestic training and skills may not achieve its intended results, the government’s independent Migration Advisory Committee (MAC) has said.
In its annual report, the MAC argued that linking migration
policies to domestic skills development is not a guaranteed solution to cutting
net migration, which hit 906,000 in the year ending June 2023.
“Linking immigration and skills policy is not a
one-size-fits-all approach, and it is important to consider the individual
circumstances within sectors and occupations, including diagnosing whether
shortages are genuinely driven by lack of skills or are because of poor pay and
conditions,” the committee said.
It added: “Increasing the level of skills in the domestic
labour pool is a worthwhile policy in its own right but does not guarantee a
substantial reduction in the reliance on the immigration system. Employers will
often still seek the best possible match for their vacancy, which could include
international recruits, and the impact of investment and skills on immigration
will vary by sector and occupation.”
Starmer had expressed his intention to reduce reliance on
overseas workers in July, stating: “We won’t be content just to pull the easy
lever of importing skills. We’re turning the page on that.”
However, the MAC’s findings challenge the effectiveness of
this approach. The report highlights that skilled workers coming to the UK on
visas have a much higher positive net fiscal impact—£16,300 per person—compared
to the £800 contributed by the average UK-born adult in the 2022-23 fiscal
year.
“The significantly higher net contributions for skilled
workers compared to UK-born adults reflects both the combination of the higher
incomes for this group, leading to higher tax revenues, and reduced expenditure
in part due to the rules on no recourse to public funds,” the report noted.
“Skilled workers also tend to be younger than the UK
population as a whole, resulting in lower health costs compared to the UK
average.”
Prof. Brian Bell, chair of the MAC, underscored the
complexities of aligning immigration and skills policy. “We would caution the
government against seeing linking immigration and skills policy as a
one-size-fits-all approach to bringing down net migration and encourage them to
continue to consider individual circumstances within sectors,” he said.
The government has directed the MAC to monitor sectors with
acute skills shortages and report yearly to guide immigration policies. It has
also pledged stricter rules for visa sponsorship and action against employers
violating employment laws.
While Starmer’s government has committed to reducing net
migration, the MAC’s findings suggest that a more nuanced approach will be
necessary to address the UK’s immigration and skills challenges effectively.
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