University College London's migration research centre finds recent EEA migrants have made a considerable positive net contribution to the UK economy
New research conducted by Prof. Christian Dustmann and Dr Tommaso Frattini from University College London's Centre for Research and Analysis of Migration (CReAM) says European Economic Area (EEA) migrants who arrived in the UK since 2000 have made a considerable positive net contribution to the UK's fiscal system.
You can read the 48-page research report, The Fiscal Effects of Immigration to the UK, here.
The research is based on data from the British Labour Force Survey, as well as official reports from several Government Departments. This was combined with data on tax receipts from the Budget Reports and with expenditures data from the Public Expenditure Statistical Analyses published by HM Treasury.
According to a CReAM press release, the research report provides an in-depth analysis of the net fiscal contribution of EEA immigrants in each fiscal year since 1995.
The main findings of the research are that:
• Recent immigrants (those who arrived after 1999 and who constituted 33% of the overall immigrant population in the UK in 2011) were 45% less likely to receive state benefits or tax credits than UK natives over the period 2000-11. They were also 3% less likely to live in social housing.
• Over the same period, recent EEA immigrants have on average contributed 34% more in taxes than they have received as transfers. Recent immigrants from countries outside the EEA have contributed 2% more in taxes than they have received as transfers.
• In contrast, over the same period, the total of UK natives' tax payments were 11% lower than the transfers they received.
• Recent immigrants are also far better educated than natives: in 2011, 32% of recent EEA immigrants and 43% of recent non-EEA immigrants had a university degree. The comparable figure for UK natives is 21%.
The Guardian today highlighted how the report found that migrants who have come to the UK since the year 2000 have made a net contribution of £25bn to public finances.
Professor Christian Dustmann, director of CReAM and co-author of the study, said: "Our research shows 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.
"What's more, immigrants who arrived since 2000 have made a very sizeable net fiscal contribution and therefore helped to reduce the fiscal burden on UK-born workers.
"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.
"Given this evidence, claims about 'benefit tourism' by EEA immigrants seem to be disconnected from reality."