Reform UK would set up a ‘employers’ migrant labour levy’ to make it more expensive to hire workers from outside.
The party’s economics spokesman Robert Jenrick said the move would also decrease employers’ national insurance for British workers down to 13.8 per cent, but charge the current rate of 15 per cent for foreign workers, creating a two-tier employment tax.
Jenrick said during a press conference on Monday to put “British workers first, migrants second”.
“We’ve had the British worker coming second for over 20 years now, driven down by cheap migrant labour, driving down wages and our people’s quality of life.
“Official government figures show that the millions of low-skilled migrants that have been brought into our country and they have cost us hundreds of billions of pounds.
Not to mention the burden they put on GP surgeries, on our schools, housing, on the roads. Well those days are going to be over under a Reform government.”
The employers’ migrant labour fee would hit enterprises that hire lower-skilled, low-earning migrants more than those who hire their more highly skilled foreign nationals.
This might be set at £3,750 per year for a full-time foreign worker on the national living wage – an annual pay of almost £25,000, Mr Jenrick suggested.
Higher incomes from overseas would pay less – £1,500 a year for individuals earning £50,000, and just £500 for those earning £100,000 or more.
But he said it would be “irresponsible” to specify the rates so long away from a general election, adding that a reform government would confer with businesses on the changes.
The fee would raise nearly £11 billion, which would pay for the drop in employers’ NICs for British workers, says Reform. The fee, said Jenrick, would be levied on migratory workers with settled status in the EU.
“This levy means that under Reform businesses will have to be accountable for the costs and benefits that their hiring decisions have on everyone else,” he stated.
He said: “The experiment of opening the door to millions of low-wage migrants, while millions of Brits rot on benefits, has failed catastrophically. Reform will stop it.
Labour and Conservative Criticism
Labour called the policy Reform’s “latest half-baked plan” that would leave British firms and British people worse off. A spokesman said: “Their plans would raise bills and hit working families the hardest.”
Conservative shadow chancellor Mel Stride said Reform was “throwing out a litany of policies hoping something sticks”.
It is not serious to announce tens of billions of pounds of commitments that are totally uncosted. It is the hallmark of a party that traffics in gimmicks and headlines without a governing plan.”
Previous Reform UK Proposal
Reform UK proposed a 20% employers’ NIC on foreign workers in 2024 to end the UK’s “deadly addiction” to cheap offshore employment.
Conclusion
The proposed employers’ migrant labour levy represents a significant shift in Reform UK’s approach to immigration and employment policy. Supporters argue it would encourage businesses to prioritize domestic workers, while critics warn it could increase costs for employers and consumers. As political debate continues, the proposal is likely to remain a key talking point in discussions surrounding UK immigration, labour markets, and economic policy.