Analysis finds skilled migrants would generate £115 billion for UK finances

Ms. Mahmood’s proposed reforms include extending the qualifying period for permanent residency from five to ten years for most migrants, and potentially increasing it to fifteen years for care workers. The announcement is expected next week, following a public consultation that received over 200,000 responses.

The IPPR analysis utilizes a similar methodology to a government assessment of the lifetime costs associated with care workers, highlighting the positive economic impact of skilled immigration through tax contributions. The think tank expressed support for potential exemptions for care workers and suggested a compromise for other migrants already residing in the UK, such as maintaining the current five-year settlement route or introducing an interim status.

“Public debate has focused heavily on the costs of recent migration, but this is not the whole story,” stated Marley Morris, associate director for migration, trade and communities at IPPR. “Our analysis suggests that over their lifetimes skilled migrants are estimated to make a net contribution of billions to the public finances.”

The government has faced pressure to reduce migration levels and alleviate strain on public services, particularly following record net migration figures from the previous Conservative administration. The possibility of applying these restrictions retroactively has created internal divisions within the government, with reports suggesting a potential scaling back of the plans.

Housing Secretary Angela Rayner previously voiced opposition to retrospective application of the changes. Prime Minister Andy Burnham recently affirmed his belief that indefinite leave to remain should be earned through contribution, while stopping short of fully endorsing Home Secretary Mahmood’s proposed reforms.