Sadiq Khan has expressed concern about the government’s proposal to reduce legal immigration, warning that it will result in a severe shortage of workers in London. The number of job openings in the hospitality industry remains higher than before the pandemic.
In the year ending June 2023, the UK population was increased by 672,000 due to net migration. Nearly half (48%) of the foreign-born population resides in London or the south-east region of England.
The government recently revealed plans to decrease net migration by raising the minimum salary requirement for individuals seeking long-term work visas and for partners of British citizens or settled individuals looking to relocate to the UK. The new threshold for both categories will be £38,700, up from £26,200.
The government plans to prohibit care workers from bringing their dependents to the UK and raise the immigration health surcharge by 66%, from £624 to £1,035 annually, in order to access the NHS.
The economic effects of Brexit on the British economy have not yet been officially released by government officials. However, a study conducted by the Greater London Authority reveals that crucial industries in London, valued at billions of pounds for the national treasury, may face significant staff shortages.
According to the evaluation, approximately 46% of the 1 million individuals employed in hospitality, healthcare, arts, and construction in the city are non-UK citizens. It is estimated that nearly 500,000 of these individuals will be impacted by the revisions.
Unless they have obtained indefinite leave to remain (ILR), all individuals will be subject to increased health fees. Non-citizens who earn significantly less than the new skilled worker requirement of £38,700 are at risk of losing their right to stay in the UK.
Khan, who has been London mayor since 2016, described the policies as “misguided” and said a failure to train up the domestic workforce was likely to leave many London businesses without the staff they need in the years to come.
He stated that London is the best city in the world due to the collaboration between generations of immigrants and trained British workers. Immigrants play a crucial role in the economy and public services, from managing care homes and establishments to contributing to the thriving arts and creative industry.
“It is crucial to prioritize the training of British workers in necessary skills. However, the government must understand that the current immigration policies will result in a significant shortage of employees. This will greatly impact public services and the economy, not only in London but throughout the entire UK.”
According to the analysis, over half (58%) of the hospitality employees in London are not from the UK. Proposed changes, such as raising the minimum salary requirement, increasing healthcare fees, and limiting the ability of UK citizens to bring their non-UK spouses to the country, are expected to impact around 250,000 hospitality workers in London. This could make it harder to fill positions for chefs and restaurant staff, according to the claims.
In September, there were a total of 24,185 newly posted online job listings for the top 10 positions in the hospitality industry. This is a significant increase from the 15,490 listings posted in January 2019.
According to reports, the arts, recreation, and entertainment sector in London employs nearly 40,000 individuals who are not citizens of the UK, making up almost 40% of the total workforce. A significant portion of these workers earn less than the revised threshold of £38,700, although specific figures are not currently known. The median salary for this industry is approximately £24,000. In September, there were 12,925 job postings online for the top 10 positions in the creative industries in the city.
Workers from outside the United Kingdom make up over 40% of employees in the health and social care industry. While care workers and senior care workers are not subject to the salary threshold increase, there are other modifications that will impact approximately 200,000 individuals in this field in London.
Those workers are expected to be particularly affected by the ban on care workers bringing dependants into the UK. The number of online postings for jobs in key health and social care roles remains high at 11,334, close to 2018 levels.
Around 40% of workers in the construction field are not citizens of the United Kingdom, and the suggested modifications to visa salary requirements are anticipated to affect roughly 60,000 individuals. In September, there were 6,246 job postings online for the leading 10 positions in construction, following a recent decline in the presence of EU citizens in the industry.
The latest health secretary has stated that care providers are mostly at ease with the government’s decision to prevent foreign care workers from bringing their dependents to the UK. However, there have been concerns raised about how this policy may worsen the already existing shortage of staff in the sector.
Victoria Atkins informed the House of Commons health and social care committee that Helen Whately, the minister of social care, had confirmed to her that the social care industry is aware of and generally at ease with the policy.
She stated that the government officials were assured that there will still be a strong global interest for care workers to come to the UK. The Conservative chair of the committee, Steve Brine, interrupted to mention that the care industry currently has 152,000 unfilled positions.
Unison has previously expressed concern that the government’s proposed changes could have a detrimental impact on the NHS and social care.
The Home Office announced that the government’s evaluation of the financial consequences of its recent policies will be disclosed, but employers should not view immigration as a substitute for improving pay and working conditions for domestic workers.
A representative stated: “Due to the ongoing pandemic, we are still experiencing an extraordinary amount of immigration. As a result, the prime minister and home secretary have revealed a proposal to significantly decrease migration levels, prevent exploitation of the system, and achieve the largest reduction in net migration to date.”
Source: theguardian.com
