According to a report published today by immigration watchdog Migrationwatch, four out of five migrant workers are a drain on the British economy.
The findings totally demolish New Labour’s claim that migrants pay more in taxes than they take back in public services. Instead, a small number of very high-earning foreign workers, mostly NHS consultants, private doctors, City financiers and engineers are masking the fact that 80 per cent of immigrants are taking more out of the economy than they contribute during their lifetimes.
Only one in five immigrants is earning the £27,000 a year required to make a positive contribution to the British economy over the course of their lifetime. It means that, if they settle here, then four out of five immigrants will cost the taxpayer a vast amount of money.
Government statistics mislead
Former diplomat Sir Andrew Green, Migrationwatch chairman, said: 'The Government and its supporters repeatedly trot out favourable looking statistics which seek to give the impression that immigration in general has a very positive effect on the UK economy.
‘The reality is that immigrants are extremely varied. A minority is highly skilled and highly paid, but a large majority will end up as an enormous cost to the taxpayer if they settle here permanently.'
The Government calculates that adult migrants make up 10.6 per cent of the population, but they contribute 10.9 per cent of the country's Gross Domestic Product (GDP) - its total economic output.
This is the basis for the Government's claim that they make a 'small but positive' contribution to the economy.
But, using the Government's own Labour Force Survey, Migrationwatch says that this calculation fails to show the full picture.
To make a positive contribution to GDP over the course of a person's lifetime, they must earn £27,000 a year.
This is the equivalent of paying £7,600 a year in income tax and other taxation, and that would cover the costs of healthcare and other public services into retirement.
The claim by the Government makes it appear that migrants in general are making a positive contribution to GDP whereas, in fact, those earning £27,000 or more each year are only a small minority of the total number.
Poorest workers
The report also shows that about 700,000 migrants, including many recent arrivals from Eastern Europe, are earning less than £10,000 a year.
Britons are in the same position, with eight out of ten of those born here not earning £27,000. Higher earners are paying the majority of the tax bill. The difference is that the government can choose which work-related migrants are allowed to settle in the UK, and therefore has the option to select only those who will provide a boost to the economy.
Migrationwatch says that, as a result, only those earning more than £27,000 - and who are filling a vacancy that cannot be taken by an EU citizen - should be allowed to settle here by the Government's new advisory panel on immigration.
Sir Andrew said: 'To most people the measures that we are suggesting are simple common sense. This research demonstrates once more that there is no economic case for massive immigration into the UK.
'The Home Secretary is right to say that we need to balance economic gain against social costs.
'The social costs of the present massive levels of immigration, including their impact on infrastructure and public services, far outweigh any possible benefit to the nation.'
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