The Office for Budget Responsibility (OBR) said the average low-earner who came to Britain aged 25 cost the Government more overall than they paid in from the moment they arrived.

The watchdog said the cumulative bill rose to an estimated £151,000 by the time they could claim the state pension at 66.

This is because low-paid migrants—who the OBR assumes earn half the average wage—put more demand on public services such as the NHS compared to their relatively low tax payments.

The OBR estimated that the cost to the public purse would rise to almost £500,000 if they lived to 80 and more than £1m if they lived to 100.

By contrast, the average British-born worker boosts the public finances by £280,000 by the time they reach 66, even adjusting for education and health spending before they start work.

While low-paid migrants drain public finances, the OBR found that the average migrant worker pays more tax than they receive in public services throughout their lives compared to British-born workers. This is mainly because they are not educated in the UK.

Migrants also pay visa fees and health care charges, which the OBR estimates at around £12,500 for a migrant on a Skilled Worker visa who settles in the UK. Most migrants are also not eligible for welfare benefits for the first five years of their stay.

The watchdog said workers earning 30% more than the average salary could expect to contribute a net £925,000 to the Treasury’s coffers until the state pension age.

These people would “still be a net benefit to the public finances even if they lived to 100”, the OBR said in its latest fiscal risks report.

By contrast, the OBR’s long-term tax and spending projections showed "an illustrative low-wage migrant worker arriving at 25 and earning half the UK average becomes less fiscally beneficial than the average UK resident in their early 40s".

David Miles, an OBR official, said: “I think the characteristics of migrants, in terms of their earnings and how long they stay, are as important, if not more important, than the absolute numbers.”

The OBR’s analysis will boost the case for the Government to cut down on low-skilled migration.

Net migration rose to a record-high 764,000 under the Conservatives.

Sir Keir Starmer has previously warned that employers have become "too reliant" on overseas workers and that they "should always have a choice of recruiting a British worker first."

The Tories overhauled the UK’s visa system earlier this year, increasing the baseline minimum salary to be sponsored for a Skilled Worker visa from £26,200 to £38,700.

The previous government also banned social care workers from bringing dependants on their visas.

Yvette Cooper, the Home Secretary, has said she supports the government's introduction of "some further restrictions on visas."

Mr Miles said migrants' wages made a "material difference" to Britain’s long-term debt trajectory. UK debt is already close to eclipsing the size of the economy.

In a scenario where all migrants earn 50% less than the average in the UK,  the OBR said the debt stock would rise to 350% of GDP by 2074 instead of hitting 275%.

If all migrants earned 30% more than the domestic population, debt would only rise to 225% of GDP over the same period.

"The characteristic of migrants, perhaps not surprisingly, matters greatly," said Mr Miles.

The Imperial College professor has previously urged policymakers to get more people working instead of relying on immigration to reduce Britain’s debts.

13/09/2024

End

In recent discussions surrounding immigration, a notable claim has emerged regarding the financial implications of low-skilled migrants on taxpayers. This article explores the assertion that low-skilled migrants cost taxpayers approximately £150,000 each throughout their residency in the host country.

Low-skilled migrants typically refer to individuals with limited formal education and work experience. They often fill agriculture, construction, hospitality, and domestic services roles. While their contributions are vital to various industries, the economic burden of supporting these migrants has become a contentious topic.

The figure of £150,000 attributed to each low-skilled migrant encompasses several facets of public expenditure:

While the costs associated with low-skilled migrants are substantial, it is essential to consider their contributions to the economy:

The assertion that low-skilled migrants cost taxpayers £150,000 each has sparked varied opinions among economists, policymakers, and the public:

The discussion surrounding the economic impact of low-skilled migrants is complex and multifaceted. The claimed cost of £150,000 per migrant raises essential questions about the balance between immigration's benefits and challenges. While low-skilled migrants play a crucial role in the labour market, their economic implications must be carefully assessed to ensure sustainable policies that benefit both migrants and the taxpayers supporting them.

A nuanced understanding of these dynamics is necessary for informed public discourse and effective immigration policy development.

Source

https://www.msn.com/en-us/money/other/low-skilled-migrants-cost-taxpayers-150-000-each/ar-AA1qtk3p