Recent immigrants to UK 'make net contribution'

 

Prof Christian Dustmann: Immigrants 'contribute to public finances'

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Immigrants to the UK since 2000 have made a "substantial" contribution to public finances, a report says.

The study by University College London said recent immigrants were less likely to claim benefits and live in social housing than people born in Britain.

The authors said rather than being a "drain", their contribution had been "remarkably strong".

The government said it was right to have strict rules in place to help protect the benefits system.

Immigrants who arrived after 1999 were 45% less likely to receive state benefits or tax credits than UK natives in the period 2000-2011, according to the report by Prof Christian Dustmann and Dr Tommaso Frattini from UCL's Centre for Research and Analysis of Migration.

They were also 3% less likely to live in social housing.

"These differences are partly explainable by immigrants' more favourable age-gender composition. However, even when compared to natives with the same age, gender composition, and education, recent immigrants are still 21% less likely than natives to receive benefits," the authors say.

'Highly-educated immigrants'

Those from the European Economic Area (EEA - the EU plus Norway, Iceland and Liechtenstein) had made a particularly positive contribution in the decade up to 2011, contributing 34% more in taxes than they received in benefits.

Start Quote

"Given this evidence, claims about 'benefit tourism' by EEA immigrants seem to be disconnected from reality”

End Quote Report co-author Prof Christian Dustmann

Immigrants from outside the EEA contributed 2% more in taxes than they received in the same period, the report showed.

Over the same period, British people paid 11% less in tax than they received.

Despite the positive figures in the decade since the millennium, the study found that between 1995 and 2011, immigrants from non-EEA countries claimed more in benefits than they paid in taxes, mainly because they tended to have more children than native Britons.

The report also showed that in 2011, 32% of recent EEA immigrants and 43% of non-EEA immigrants had university degrees, compared with 21% of the British adult population.

Graph

The research used data from the British Labour Force Survey and government reports. Prof Dustmann said it had shown that "in contrast with most other European countries, the UK attracts highly-educated and skilled immigrants from within the EEA as well as from outside".

He added: "Our study also suggests that over the last decade or so, the UK has benefited fiscally from immigrants from EEA countries, who have put in considerably more in taxes and contributions than they received in benefits and transfers.

Start Quote

The real issue for the future is the very large numbers of low-paid immigrants from eastern Europe”

End Quote Sir Andrew Green, Migration Watch

"Given this evidence, claims about 'benefit tourism' by EEA immigrants seem to be disconnected from reality."

Sir Andrew Green of the pressure group Migration Watch said the report had "been spun".

"We've had roughly four million immigrants under the previous government - two-thirds of those were from outside the European Union," he told BBC Radio 4's Today programme.

He said the report found that, "since 1995, they have made a negative contribution overall".

He added: "So the verdict for non-EU is that the benefit to the exchequer is minimal or negative."

He accepted that "if you take the whole of the EU", the benefit was "clearly positive".

But Sir Andrew said this would be expected "because you are including German engineers, French fashion designers and - as it's the European Economic Area - even Swiss bankers [sic]".

"The real issue for the future is the very large numbers of low-paid immigrants from eastern Europe," he said.

He added: "The report looks backwards but doesn't look forwards.

"The professor's report does not take into account - no doubt for good reason - future health costs as migrants get older nor the pension bill, which is huge."

Career peak

Start Quote

It's absolutely right that we have strict rules in place to protect the integrity of the British benefits system to ensure it's not abused”

End Quote Government spokesman

Prof Dustmann told Today: "It is true that recent immigrants are younger but they are also much better educated.

"So they will take more out of the benefit system but they will also contribute more in the future because they have not yet reached their career peak and their full income potential.

"Of course, the more you earn, the more you pay in taxes."

A spokesman for the government said: "We welcome those that want to come here to contribute to the economy, but it's absolutely right that we have strict rules in place to protect the integrity of the British benefits system to ensure it's not abused."

Graph

He added that this was why the government was strengthening measures to ensure that benefits are only paid to people who are "legally allowed to live in Britain".

Meanwhile, a separate UCL study released on Tuesday warns that the government's target to cut net migration to the UK to the tens of thousands is "neither a useful tool nor a measure of policy effectiveness".

That report argues that actions to cut work-related, student and family migration have damaged the UK's reputation as a good place to work and study.

The 2011 census showed that 13% of the population of England and Wales was born outside the UK.

 

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  • rate this
    +3

    Comment number 1702.

    Aduphanel

    Yes i can define it 1000 years homogenus of anglo saxon dominance and not taking threats from the EUROPE or the rest of the world for that matter

    Where did you go to school Henry Harbin.

    Did you not see the report in the papers the other day. We are still governed by the Normans. They have dominate the top 1% of the Establishment for 950 years.

  • rate this
    +5

    Comment number 1701.

    1604.Nick
    "What upsets me is that people generally start developing hatred towards immigrants and start talking about defending their origins. Hitler sadly spoke in the same way."

    I find it extremely offensive to suggest that those who disagree with you are speaking like Hitler. This is one step further than the normal "racist" accusations. Actually I see dismay but little hatred here.

  • rate this
    -6

    Comment number 1700.

    1689. LondonDave
    Not going past London school playgrounds on the train and seeing a wash of headscarves or just pairs of eyes looking at you through a black hood with a slit in it for a start.
    //////
    I know what ISN'T British culture, but that my question is what IS. Why can't anyone answer that? Because they don't have any culture?

  • rate this
    +6

    Comment number 1699.

    Does it mention the indigenous workforce now claiming benefits as they cannot find work? I fear for my children when they leave school. They won't be able to get a job in a shop or restaurant like we did. Also at the end of the day, I am sick and tired of hearing more and more foreign languages in my high street. Enough is enough. Please no more.

  • rate this
    -2

    Comment number 1698.

    "Paul
    Im voting UKIP"

    So, you want to see income tax for pensioners rise by 50%, then?

    " maxmerit
    Where will they [Romanians] all go ?"

    Probably Italy or another Latin based language country as they are similar languages.

  • rate this
    +1

    Comment number 1697.

    @1670

    I also left out Turkish Kebab alongside Bangladeshi / Thai / Italian too.
    Does this make me a bad person :(

  • rate this
    +4

    Comment number 1696.

    1592. Philip Jennings
    29 MINUTES AGO
    1558. SJH
    Are you serious....
    //////////
    Anything else?

    ------------------------------------------------

    Certainly. Sharia law (as a Civil Law Tribunal) is now increasingly practiced and young women are pressed on spurious religious grounds to surrender rights hard won in the UK over decades. I have seen some lose their children. Happy with that Philip?

  • rate this
    +6

    Comment number 1695.

    Is this report meant in someway to cover up/heal some of the problems that mass immigration has had on this country?

    If so politicians and the like must really think the British public are completely stupid.

    Never mind come the 2015 election i will register my stupidity alright, by voting them out.

  • rate this
    +1

    Comment number 1694.

    1676.balloon_knot
    And any takers what defines immigrant culture - Not takes from the left thought not hypocrite

    Yes i can define it 1000 years homogenus of anglo saxon dominance and not taking threats from the EUROPE or the rest of the world for that matter

    Innovatian , Defiance and strength - defines ENGLISHNESS

  • rate this
    -10

    Comment number 1693.

    This story only confirms what most of us lready knew. It's a shame that everything has to be measured in economic terms these days. Britain is blessed with a genuine multi-culturalism that makes us the richest nation on earth. But it's a richness that has nothing to do with money.

  • rate this
    0

    Comment number 1692.

    1665.CURTAINS 2012
    "You wouldn't want the legal(?) profession to made to offer value for money would you?"
    =
    What's your point?

  • rate this
    +2

    Comment number 1691.

    The problem with "low paid immigrants from Eastern EU" (as the article refers to them). Is that not only can they spell and do basic maths, unlike the state educated UK natives, but they are also willing to work; again, unlike UK natives.

  • rate this
    0

    Comment number 1690.

    I am an immigrant. If you blame me I am wrong in immigrating with one finger, I will point blame on you with 2 fingers
    1. It is YOUR ELECTED GOVERMENT which welcomed us and allowed us to work in UK.
    2. It is YOUR ELECTED GOVERMENT Thought there is skill shortage
    3. It is YOUR ELECTED GOVERMENT wanted our tax money to pay benefits to natives
    Otherwise we wont have came here in first place

  • Comment number 1689.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    -3

    Comment number 1688.

    1660. Corky
    Philip you're a weasle. You're using the "racist" label to try and win the debate.
    ///////
    Nah. I just used the first bit of 1617. Corky's insinuation:

    "It seems that many...are often from ethnic backgrounds or are foreign born."

    ...to make my own insinuation. So, either Corky is a "weasle" (sic) as well, or you're a hypocrite. Any way, you've been set up and fell for it.

  • rate this
    0

    Comment number 1687.

    1628. Staal
    It fails because the need to prop up our dependency ratio requires workers with no family ties so they don't a) send money back as remittances or b) plan to stay and bring the extended family over, making the whole idea a bit pointless given the numbers of migrating disowned eunuchs is probably a small % of overall migration.

  • Comment number 1686.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +1

    Comment number 1685.

    1647 Aamir

    'I'd understand your outrage if the line were removed from the actual article. '

    You saw what happened when you and I merely quoted that gem of a quote from the article. We're allowed to read it but not draw the obvious conclusions and comment upon it. That suits the censor-crazed left whose reaction to anything they don't like is to ban it.

    Don't expect me to be thrilled.

  • rate this
    -1

    Comment number 1684.

    Cue abject racism disguised as 'thoughtful concern'...oh, wait.

  • rate this
    +1

    Comment number 1683.

    A conservative estimate is the figure of 275,000, the number of Bulgarian and Romanian immigrants who will arrive here next year. Where will they all go ?

 

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