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Immigration from the EU Brings Positive Economic Impact

Immigrants coming to the UK from other EU countries have had a positive impact on the UK economy, according to a newly published report.

The research, which was conducted by the UCL Centre for Research and Analysis of Migration (CReAM), found that European immigrants to the UK have paid more in taxes than they received in benefits, helped to relieve the fiscal burden on UK born workers and contributed to the financing of public services.

The report reveals that European immigrants who arrived in the UK from 2000 have contributed more than £20 billion to UK public finances between 2001 and 2011. In addition, they have endowed the country with productive human capital that would have cost the UK £6.8 billion in spending on education.

Between 2001 and 2011, European immigrants from the EU-15 countries apparently contributed 64% more in taxes than they received in benefits. Immigrants from the Central and East European accession countries contributed 12% more than they received.

“A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems,” explained Professor Christian Dustmann, Director of CReAM and co-author of the study. “Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU.”

“When we additionally consider that immigrants bring their own educational qualifications whose costs are borne by other countries and that they contribute to financing fixed public services such as defence, these contributions are even larger,” Professor Dustmann added.

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