EU Migrants Pay In More Than They Take - Study

Written By Unknown on Kamis, 06 November 2014 | 00.11

EU migrants contribute more to the UK in taxes than they receive in benefits and services, according to new research.

But the study showed those arriving from outside Europe over a 17-year period took more from the public purse than they put back in.

The findings come as David Cameron moves to tighten the UK's immigration controls by limited EU migration in the face of the growing popularity of UKIP.

The Prime Minister is aware of the need to calm Tory jitters ahead of this month's crunch by-election in Rochester and Strood, where the party is desperate to prevent a second seat falling to UKIP.

The University College London (UCL) report revealed European immigrants made a positive financial contribution of £4.4bn to the UK between 1995 and 2011.

Video: Immigration: Study Out Of Date

However, immigrants from outside the European Economic Area (EEA) made a negative contribution of £118bn.

Over the same period, UK-born workers made a negative contribution of £591bn.

The figures improved for more recent arrivals with EU migrants between 2001-11 making a positive contribution of £20bn, and those from outside Europe £5bn.

Professor Christian Dustmann, director of UCL's Centre for Research and Analysis of Migration (Cream) and co-author of the study, said: "A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems.

"Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU."

He added: "European immigrants, particularly, both from the new accession countries and the rest of the European Union, make the most substantial contributions.

"This is mainly down to their higher average labour market participation compared with natives and their lower receipt of welfare benefits."

Immigration Minister James Brokenshire told Sky News the focus of the report was too narrow and not up-to-date. 

Video: Report: Migrants Boost UK Economy

He said: "In respect of the time period that it talks to, it ends in 2011 whereas we have seen the pressure from EU migration - net migration, those who are coming versus those who are going out - over the course of the last 18 months it has more than doubled during that period.

"It also does not take into account pressure on schools, roads, housing services, those things that really matter to people in their communities."

Deputy Prime Minister Nick Clegg said the report showed the balance on immigration was wrong and there needed to be proper border controls but that Britain must remain an "open economy".

He told ITV's Lorraine programme: "If we were simply to turn our back on the world, which is what UKIP and the Conservative Party and others want, as a country we would be poorer."

UKIP Migration spokesman MEP Steven Woolfe, said: "What this study doesn't do is to show what wealth our own people could have generated if they weren't subjected to wage-reducing, employment-displacing mass immigration from the EU. Nor does it truly take into account the opportunity costs to the UK of substituting large sections of Britain's workforce with migrant labour."

Responding to the report, chairman of the MigrationWatch UK think tank Sir Andrew Green said: "This report confirms that immigration as a whole has cost up to £150bn in the last 17 years.

"As for recent European migrants, even on their own figures - which we dispute - their contribution to the exchequer amounts to less than £1 a week per head of our population."


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