Eight in 10 EU care workers in UK wouldn’t have been eligible under new immigration system, study finds

Tighter immigration rules will hamper UK’s economic recovery from coronavirus, think tank warns

The IPPR said the new immigration rules could inhibit recruitment in critical sectors of the economy, in particular the care sector, where it said they  would  further exacerbate an existing recruitment crisis (EPA)

Eight in 10 EU care workers in the UK wouldn’t have been eligible to work under the new immigration system, according to a study that warns tighter rules could hamper the UK’s economic recovery from Covid-19.

A report by the IPPR reveals that almost two thirds of EU nationals working in UK would not have been allowed to come to the country under the post-Brexit immigration system — due to come into force on 1 January — including 80 per cent of social care workers.

The think tank said the tougher rules could inhibit recruitment in critical sectors of the economy, in particular the care sector, where they would further exacerbate an existing recruitment crisis.

Under the government's immigration plans, there will be a mandatory requirement for visa applicants to have a job offer on a list of eligible occupations, with a minimum salary requirement of £20,480.

Even before the pandemic, there were over 100,000 social care vacancies, but with the government’s proposed salary threshold and “skilled worker” visa stipulations, recruitment will be even harder at this critical time, IPPR said.

A fast-track health and care visa unveiled in July was criticised for not including social care workers, with the Royal College of Nursing saying the plans fell short of what was required and would directly affect patient care.

IPPR found that other industries highly reliant on EU migration would also be hit hard, such as in food production, where they make up one in every four workers. The hospitality sector, which is typically very reliant on EU nationals, is less likely to be affected due to the rapid fall in vacancies due to the pandemic, the report notes.

In some areas where economic prospects are returning — such as manufacturing, logistics, and construction — employers may struggle to recruit the skills they need due to the new restrictions, researchers said.

While the government’s priority will be to support unemployed UK workers into these jobs, the report warned that it was likely to take some time to retrain and up-skill workers for them to fill such vacancies.

IPPR also warns that the new immigration system could lead to an increase in poor working practices and exploitation, with unscrupulous employers who were previously reliant on EU workers turning to informal work arrangements to fill vacancies, placing migrants in more vulnerable situations.

It finds that the reduction in European migration will “not in any way” benefit UK workers in the long run, pointing out that migration does not only increase the supply of workers, it can also increase demand for workers, typically resulting in no significant impact on wages or employment.

The report proposes a number of recommendations to improve the points-based system to support the government’s efforts to respond to the pandemic and help spur the country’s economic recovery.

The principal recommendations are for the government to support critical sectors — such as by adding senior care workers to the shortage occupation list — scrap the salary threshold, foster local talent and tackle exploitation, such as by requiring employers to inform workers of their employment rights as part of their sponsor duties.

The report’s key reform proposals have been backed by a number of major employer and professional associations including Care England, the Federation of Master Builders, the North West Business Leadership team and London First.

Marley Morris, IPPR’s associate director for immigration, trade and EU relations, said: “As our care system struggles and businesses reel from the effects of the pandemic, it is vital that the new points-based system helps to support the country’s response to coronavirus and the economic recovery.

“The government can use the new system to ‘build back better’ from the current crisis. The rules should be reformed to allow employers to address immediate skills shortages across all parts of the labour market, while also encouraging employers who sponsor migrant workers to pay the living wage, offer secure work, and invest in skills and training.”

 A government spokesperson said: “We are delivering a firmer, fairer, points-based immigration system from January 2021, based on what people have to offer, rather than where their passport is issued.

“We’re supporting the social care sector in a number of ways, including more funding and a national recruitment campaign, but we want employers to focus on investing in our domestic workforce.

“As we look to the future, we must be realistic about the effect coronavirus has had on the labour market and our economy, and we know an increased number of people across the UK are looking for work. It is important that we focus on the resident labour market at this time.”