Key facts
- Reform UK plans a levy on employers hiring overseas staff.
- The policy aims to encourage hiring of British employees.
- Experts warn it would harm the NHS, social care, and education.
- Universities could face financial distress due to increased salary costs.
- The levy would apply to employees without a UK passport, excluding Irish nationals.
- There are no exceptions for sectors with staff shortages.
Reform UK's proposal for employers to pay an annual levy for hiring overseas staff has drawn criticism from various experts who warn it could significantly harm essential sectors like the NHS and social care, as well as education.
The proposed "migrant worker surcharge" would involve increased employer national insurance contributions and a separate annual charge for any employee without a UK passport, with the exception of Irish nationals. Crucially, the policy would not exempt sectors heavily reliant on foreign workers, such as healthcare and education.
Thinktanks and professional bodies argue that the available pool of British workers is insufficient to fill these roles. The King's Fund highlighted that with 20% of NHS England staff being non-UK nationals, the levy would impose additional costs on an already strained service, potentially leading to cuts in care quality. Suzie Bailey from the King's Fund expressed strong doubts about the policy's practicality, predicting negative impacts on healthcare.
Victoria Tzortziou Brown, President of the Royal College of General Practitioners, pointed out the counter-productivity of penalizing overseas GPs who have trained in the UK at public expense, noting that general practices, often small independent services, could be disproportionately affected, ultimately impacting patient access to care.
Jane Townson, CEO of the Homecare Association, stated that the care sector already faces higher costs and complexity in employing overseas staff due to demand and a shortage of UK workers. She warned that a levy, particularly higher for low-paid workers, would be unabsorbable by providers, leading to reduced home care access, increased hospital backlogs, potential worker exploitation, and provider failures, with costs ultimately falling on the public purse.
In education, the impact could vary, but many overseas teachers are long-term UK residents with settled status. James Zuccollo of the Education Policy Institute noted that including these individuals would hinder future recruitment and burden existing staff.
Universities, where nearly half of institutions are currently running deficits and up to 60% of budgets are spent on salaries, could face severe financial strain. Nick Hillman of the Higher Education Policy Institute suggested that in extreme cases, these higher wage bills could push some universities towards insolvency, a situation no UK university has yet experienced.
Furthermore, Dr. Alicia Greated from the Campaign for Science and Engineering warned that the plans could be "highly damaging" to the broader research and development sector, which already grapples with high visa costs and complex policies that divert funds from research investment.