Though Mahmood’s proposals will lengthen the time it takes them to gain access to the welfare system, the change “will not make a significant difference to the lifetime fiscal impact” of these migrants, according to the report.
“The only way this policy would significantly bring down the £10 billion lifetime fiscal cost is if it led to large numbers of care workers and dependents leaving the U.K. before they reached the qualifying period for settlement,” the IPPR says. As it stands, that’s not the case Mahmood is making.
The primary reason care workers make a negative net lifetime financial contribution is because they are poorly paid. Gaining settlement would allow them to earn more by opening the door to work in any occupation. But delaying this traps them in lower-paid work for longer, the document argues.
“The overall fiscal impact of the proposed earned settlement reforms should therefore consider the potential costs of lower tax contributions from the care worker cohort while they wait for settlement, as well as the fiscal benefits of restricting access to public funds for longer,” the IPPR says.
If indeed the policy is to encourage care workers and their dependents to leave the U.K. in large numbers then the briefing argues it could in fact add to costs.
Estimates by the MAC, which advises the Home Office, point out that their adult dependents are net positive contributors for 20 — and it’s only after around 40 years that they make a cumulative net negative financial impact to the British state.
