Reform UK’s proposal to make employers pay an annual levy for employing overseas staff would harm the NHS and social care, cause a shortage of schoolteachers, and could push some universities into bankruptcy, experts have warned.
Policy details and no exceptions
Nigel Farage’s party has pledged a “migrant worker surcharge”, involving a higher rate of employer national insurance as well as a separate annual charge. It would apply to any employees without a UK passport, including EU nationals with settled status, with the exception of Irish passport holders. The Guardian has been told that there will be no exceptions for sectors with frequent staff shortages and a reliance on overseas workers, including the NHS and education.
Impact on NHS and social care
The King’s Fund, a leading health thinktank, noted that with 20% of NHS England staff not being UK nationals, the policy would “add costs to a service that is already stretched”. Suzie Bailey from the King’s Fund said: “I think, ultimately, it would impact on the care that the service is able to give, because that money would have to come from somewhere, so other cuts would have to be made.” Prof Victoria Tzortziou Brown, president of the Royal College of General Practitioners, said moves to penalise overseas GPs risked being counter-productive given their UK-funded training. Jane Townson, chief executive of the Homecare Association, said a levy higher for low-paid workers would particularly affect care: “Providers cannot absorb this. The predictable risks would be reduced access to home care, causing harm to individuals and families, more people stuck in hospital, greater exploitation of workers, and provider failure damaging continuity of care for people – with the bill ultimately landing back on the public purse.”
Effects on education
James Zuccollo, head of school workforce at the Education Policy Institute, noted that many overseas teachers are long-term UK residents: “A measure that includes settled-status holders would operate not only as a brake on future recruitment but as a charge on staff already teaching in our schools, in many cases for years.” Nick Hillman, chief executive of the Higher Education Policy Institute, said the plans could significantly affect universities, with many spending up to 60% of their budget on salaries. He said: “As close to half are running deficits at the moment, higher costs still would lead to other spending being cut. No UK university has ever yet gone bust, though some are close, so higher wage bills could, in extreme circumstances, also push one or more to the wall.”
Wider research impact
Dr Alicia Greated from the Campaign for Science and Engineering said the plans could also be “highly damaging” to the wider research and development sector, adding: “High visa costs and complex visa policies already put significant strain and costs on organisations and individuals, taking away money that could be invested in research.” Reform UK was contacted for comment.
