Research Says UK Treasury Benefits From Immigration

By Fiona Moore, for 11 November, 2014

A study has found that recent European migrants to the UK have higher labor market participation rates than natives, and that new arrivals since 2000 provided a net fiscal benefit to the country of GBP20bn (USD32bn) in taxes between 2001 and 2011.

The research was conducted by the Centre for Research and Analysis of Migration (CReAM) at University College London. It revealed that new migrants from the EU15 – those countries that have been part of the European Union since 1995 or earlier – paid 64 percent more in taxes than they received in benefits over the ten-year period. Those from the remaining ten countries that have joined since 2004 provided a net gain of 12 percent, or GB5bn.

By contrast, the net fiscal contribution of native UK-born persons during the same period was negative, with welfare claims of GBP617bn above tax contributions, the research said.

The research says that 81 percent of those from the ten nations that joined the EU after 1995 were employed, compared with 70 percent for EU15 migrants, and 70 percent for UK natives.

Compared to natives, immigrants who have arrived since 2000 are 43 percent less likely than natives to receive state benefits or tax credits, and 7 percent are less likely to live in social housing.

CReAM's Director, Professor Christian Dustmann, added that immigrants are often qualified, with the cost of that education often borne by other countries' Governments.

Tags: Tax | United Kingdom | Revenue Statistics | European Union (EU) | Expats | Working Abroad | Europe | Work | Working Abroad | Working Abroad |


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