Keir Starmer’s proposal to reduce UK net migration by boosting domestic skills and training may not deliver the intended results, the government’s independent Migration Advisory Committee (MAC) has concluded.
The committee’s annual report, released on Tuesday, challenges Labour’s key strategy to decrease net migration, which reached 906,000 in the year ending June 2023.
Starmer previously emphasized that reducing reliance on overseas workers by aligning skills training with migration policies would help tackle the issue. “We won’t be content just to pull the easy lever of importing skills. We’re turning the page on that,” the prime minister stated in July.
The MAC report, however, underscores the complexities of such a policy. “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,” the committee noted. It added that skills shortages could stem not only from a lack of trained workers but also from factors like low pay and poor working conditions.
The report highlights that increasing domestic skill levels is a valuable policy but does not guarantee a significant reduction in 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 in skills will vary by sector and occupation,” the committee said.
Significantly, the report reveals that migrants on skilled worker visas contribute far more to the UK economy than UK-born adults. Skilled overseas workers had a positive net fiscal impact of £16,300 in 2022-23, compared to just £800 for the average UK-born adult.
“The significantly higher net contributions for skilled workers compared to UK-born adults reflect the combination of higher incomes, which lead to increased tax revenues, and lower public expenditure, partly due to restrictions on access to public funds,” the report explained. Additionally, skilled migrants are often younger than the UK population, reducing healthcare costs.
The Labour government has pledged to bring down net migration – the difference between those entering and leaving the country – a central issue in ongoing immigration debates. To achieve this, the government has tasked the MAC with monitoring key sectors facing skills shortages, identifying areas that rely heavily on overseas recruitment, and providing yearly recommendations to inform policy decisions.
Further measures include strengthening visa sponsorship rules to hold employers accountable if they breach employment laws.
Professor Brian Bell, chair of the Migration Advisory Committee, acknowledged recent declines in net migration but warned against oversimplifying solutions. “Whilst we are expecting net migration to fall further, we would caution the government against seeing linking immigration and skills policy as a one-size-fits-all approach,” Bell said.
He emphasized the need for tailored strategies, saying, “We encourage the government to consider individual circumstances within sectors and occupations. This report also develops a methodology for understanding the fiscal impact of migrants on skilled worker visas, which is crucial for evaluating the benefits of such routes.”
