Policy experts warn Reform UK migrant levy threatens public sector stability
Reform UK’s pledge to impose a “migrant worker surcharge” has drawn sharp criticism from sector leaders, who argue the policy ignores existing workforce deficits and financial vulnerabilities across the NHS, education, and social care systems.
Reform UK has proposed a “migrant worker surcharge” designed to incentivise the hiring of British employees by imposing a higher rate of employer national insurance and a separate annual charge on employees without a UK passport. The policy, which would apply UK-wide, includes EU nationals with settled status but excludes Irish passport holders. The Guardian has reported that the levy will apply to all sectors, including those with frequent staff shortages such as the NHS and education, with no exceptions.
The King’s Fund, a leading health thinktank, highlighted that 20 per cent of NHS England staff are non-UK nationals. Experts warn that adding costs to an already stretched service would necessitate further cuts to care provision. Suzie Bailey from the King’s Fund stated it was difficult to see how the policy would work in practice without negatively impacting healthcare delivery.
In the general practice sector, Prof Victoria Tzortziou Brown, president of the Royal College of General Practitioners, argued that penalising overseas GPs was counter-productive. She noted that many of these professionals underwent specialist training in the UK at public expense. The RCGP warned that small-scale independent practices could be disproportionately affected, risking patients’ access to care.
The Homecare Association cautioned that providers cannot absorb the increased costs, predicting reduced access to home care and potential provider failure. Jane Townson, the association’s chief executive, said the risks included greater exploitation of workers and increased hospital admissions, with the financial burden ultimately landing back on the public purse.
In education, the Education Policy Institute noted that overseas teachers are disproportionately represented in secondary schools and shortage subjects such as languages and physics. James Zuccollo, head of school workforce at the institute, described the measure as a charge on staff already teaching in schools, many of whom are long-term residents.
The Higher Education Policy Institute warned that nearly half of UK universities are running deficits, with salary costs accounting for up to 60 per cent of budgets. Nick Hillman, the institute’s chief executive, said higher wage bills could push some institutions to insolvency. Meanwhile, the Campaign for Science and Engineering warned that high visa costs already strain the research and development sector.