Labor to tackle immigration by ending lower wages for foreign workers

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A Labor government would limit the flow of foreign workers into Britain by ending current rules which allow companies to pay migrant labor only 80% of the normal rate for a job in some ‘shortage occupations’, the leader announced on Wednesday Keir Starmer.

The Labor leader, speaking at the premier’s weekly questions in the House of Commons, accused the government of having lost control over immigration, ahead of new data on Thursday which should show another surge in the increase in the migratory balance in the UK.

He challenged Prime Minister Rishi Sunak to “get serious about wages in Britain and get serious about skills and training”, arguing that skills shortages were the reason the government issued so many visas.

Employers can currently only pay 80% of the usual wage for some sectors on the ‘shortage list’, including social work, healthcare, engineering, IT and architecture, although this must still be higher than the minimum wage.

Starmer said Labor would be the “workers party” in government, saying: “Labour would fix the apprenticeship levy, close the skills gap and stop firms from hiring from overseas if they don’t pay adequately.”

Labor cited the example of civil engineers who can be recruited from overseas for just £28,000 a year compared to the going rate of £34,000 a year for domestic assignments.

The Migration Advisory Committee (MAC), the independent group that advises ministers on immigration policy, urged the government eliminate the 20% discount on the grounds that it creates a “perverse” incentive for employers to hire from abroad.

Suella Braverman, the home secretary, presented a similar proposal to ministers earlier this year, but the policy was rejected after a Treasury pushback over its economic impact.

Jonathan Portes, an economics professor at King’s College London, said it was a “perfectly sensible” proposal that wouldn’t make a huge difference in terms of the number of migrants, with the possible exception of social welfare.

“This will, of course, mean higher pay for health care workers who will require funding from taxpayers or those who pay for care,” he said.

Sunak grapples with how to satisfy the The 2019 Tory Party Manifesto Pledge reduce overall immigration. This week he announced that the government would limit foreign students, apart from those studying PhDs, from hiring dependents.

Sunak said the spike in net migration was influenced by “unique” circumstances, including the entry of people for “humanitarian reasons,” a reference to schemes to accept refugees from Ukraine and Afghanistan.