Europe / Muslims in Government Statistics / Muslims in Media Statistics / UK

UK study reveals Immigrants from outside EU take £100 Billion more in benefits than they paid back in taxes

How migrants from outside Europe leave a £100billion hole in the public purse: Amount taken in benefits and services is 14% higher than money put back

  • Major study tracks cost and contributions of migrants over 16-year period
  • It finds migrants from outside Europe cost a lot more than they give back
  • But migrants from East and West Europe are a net benefit to Exchequer

By Steve Doughty

PUBLISHED: 00:32, 5 November 2013 |  DailyMail

Immigrants from outside Europe have taken £100billion more in benefits and services than they paid back in taxes, a major study revealed yesterday.

Over a 16-year period, the bill to the taxpayer of providing them with welfare, health and education was 14 per cent higher than the money they put in the national purse.

However, migrants from Europe – including those from Eastern Europe who came in large numbers after 2004 – have paid more in taxes than they received, researchers said.

Unemployed line up at a Jobcentre Plus: Immigrants from outside Europe have taken £100¿billion more in benefits and services than they paid back in taxes, a major study revealed yesterday

Unemployed line up at a Jobcentre Plus: Immigrants from outside Europe have taken £100billion more in benefits and services than they paid back in taxes, a major study revealed yesterday. (Stock image)

The report from academics at University College London claims to be the most far-reaching study yet conducted of the impact of migration on taxpayers.

Its findings were based on official figures, including those for public spending and tax receipts, and on the Government’s Labour Force Survey that looks at the lives of around 150,000 families each year.

Professor Christian Dustmann and Dr Tommaso Frattini said that between 1995 and 2011, migrants from European countries paid 4 per cent more into the tax system than they took out, while British-born people had on average paid in 7 per cent less than they received from the state.

However, migrants from outside the European Economic Area (EEA) – which is the 27 EU countries plus Iceland, Liechtenstein and Norway – had made a ‘negative fiscal contribution’ overall,’ their report said.

Register today! A promotional banner for a firm in Bucharest, the Romanian capital, recruiting for workers to come to Britain when borders open next year

Fresh influx: A banner promoting a firm in Bucharest, the Romanian capital, recruiting for workers for jobs in Britain when borders open to Romanians next year

‘This is partly explained by their demographic structure – non-EEA immigrants have had more children than natives, and we have allocated educational expenditure for children to immigrants.’

The analysis comes at a point of deepening controversy over the cost of health and benefit tourism and widespread anxiety over the potential impact of a new wave of migration from Romania and Bulgaria in the new year.

Citizens of the two countries, which joined the EU in 2007, win the right to work freely in Britain from January.

The Daily Mail reported at the weekend that British firms are actively recruiting workers in Bucharest and that job agencies in Romania are already being asked how to claim state benefits in this country.

UCL’s report said the population of migrants from outside Europe grew by more than 2.2million between 1995 and 2011, reaching just under 6.15million in 2011.

It said that over the same period, the non-EEA immigrants received public services and benefits worth £104 billion more, at 2011 prices, than they paid in taxes.

Their contributions, the report said, paid just over 86 per cent of the value of the services and benefits they received.

Over the same period, the EEA migrant population went up from under two million to 2.85million in 2011. But they contributed £8.8billion more to the Treasury than they received in services and benefits, meaning they paid 4 per cent more than they took.

According to the data, migrants are 20 per cent more likely to be claiming work tax credit than Britons. One in seven people claiming the benefit is a non-UK national.

The report does not break down differences between migrants from wealthy western European countries like France and Germany and those from poorer Eastern European nations.

Migrants from Poland and seven other Eastern European states gained the right to work freely in Britain in 2004.

Open door: University College Londonss report said the population of migrants from outside Europe grew by more than 2.2million between 1995 and 2011, reaching just under 6.15million in 2011

Open door: University College Londonss report said the population of migrants from outside Europe grew by more than 2.2million between 1995 and 2011, reaching just under 6.15million in 2011

Professor Dustmann and his colleagues said: ‘Immigrants arriving since the early 2000s have made substantial net contributions to public finances, a reality that contrasts starkly with the view often maintained in public debate.’

However their report said recent immigrants are likely to be of working age and so make fewer demands on schools or the NHS.

But Sir Andrew Green of the MigrationWatch UK think tank said: ‘It is very interesting that this report finds that non-EU migrants since 1995 have made a negative contribution to the national budget, yet they have accounted for two thirds of foreign immigration over the past 15 years.

‘As regards EU migrants, much of the benefit stems from their relative youth but, like the rest of us, they will get older. No allowance has been made in these calculations for future pensions or for higher health costs in old age.’

Dr Carlos Vargas Silva of the Migration Observatory at Oxford University said the research suggests the net contribution of recent migrants is positive – but some groups can ‘represent a burden’.

11 thoughts on “UK study reveals Immigrants from outside EU take £100 Billion more in benefits than they paid back in taxes

  1. Migrants aren’t the issue; and we should welcome more. It’s schools inability to adapt to the times that is the problem here. Too many racists about as it is, we don’t want this to turn into resentment. :It isn’t just migrants ,economic situation has led to fewer people going to private sector education, baby boom in some areas and school closures in the recent past, plus new developments without appropriate infrastructure. Some migrants actually benefit this country and if they all left tomorrow the UK would grind to a halt and never recover.

    Few migrants of working age are coming for the sub-continent. Those arrived in 50s or 60s are now old age pensioners. Majority of them are on benefit. My son last year paid £40,000 income tax. My two nephews who were educated as Doctors from Pakistan are paying thousands of pounds each year. The British tax payers never spent a single penny on their education. My two other nephews who were trained as doctors in London, one is working in USA and other is working in London as a dentist. They must be paying lot of income taxes as well as indirect taxes.

    the British Looted and Plundered the wealth in India, Bangladesh, Pakistan during their occupation during the Raj. “In 1850, the diamond was CONFISCATED from the Sikh Empire by the British East India Company and became part of the British Crown Jewels when Queen Victoria was proclaimed Empress of India in 1877. The diamond was traditionally known as “Kuh-e nur” in the 19th century after the BRITAIN CONQUEST of India. The diamond is currently set into the Crown of Queen Elizabeth and is on display at the Tower of London “. The small minority of radical so called British people (most not even true British; go check out your lineage) talk about integration and people having to integrate to British life and British ways.

    Did the British integrate when they were colonising vast numbers of country’s around the world; FORCEFULLY implementing the British ways onto other people and countries.
    IA
    http://www.londonschoolofislamics.org.uk

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    • Don’t use the British exploitation of India as a pretext. Hindu and Sikh immigrants are much better off and well integrated into western society, than are Muslim immigrants. Then there are Arab and Turkish immigrants who are Muslim too. All these Muslim immigrants create a major headache for their host countries. Give them an inch and they demand a mile.

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  2. There are three million Afghani immigrants in Pakistan for the last 20 years. Still many of them come here for education, employment and medical treatment. All rich Afghani has a Bungalow in Islamabad, Quetta, Peshawar and Karachi. The president of Afghanistan also has Pakistani passport and has a big Bungalow in Islamabad and Quetta.
    IA

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    • Pakistan invited them over, setting up Madrassas and creating the Taliban. The Afghans despise Pakistan for destroying Afghanistan. Don’t compare those three million Afghan ‘immigrants’ with Muslim immigrants to Europe.

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  3. Pingback: Good Job Europe! | little spoon

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