Reform UK’s proposal to impose an annual levy on employers for hiring overseas workers has drawn criticism from experts warning it could exacerbate staffing shortages and strain public services across the United Kingdom.
The plan, unveiled by Nigel Farage’s party, would require employers to pay a higher rate of national insurance alongside a separate surcharge for each employee without a UK passport. The measure would include European Union nationals with settled status, though Irish passport holders would be exempt. According to available information, the levy would apply broadly across sectors without exemptions for industries currently reliant on overseas staff, such as the National Health Service (NHS), social care, and education.
Proponents of the policy argue the surcharge aims to encourage organisations to prioritise hiring British workers. However, multiple think tanks and professional bodies have raised concerns about the feasibility of this approach, citing persistent shortages in key roles that cannot be easily filled by domestic workers.
The King’s Fund, a health-focused think tank, noted that around 20% of NHS England staff are non-UK nationals. Suzie Bailey of the King’s Fund said introducing this levy would increase operational costs for an already stretched service, potentially forcing cuts elsewhere and diminishing the quality of care. “It is very hard to see how this would do anything other than impact on healthcare,” she said.
Victoria Tzortziou Brown, president of the Royal College of General Practitioners, highlighted that many overseas doctors have undergone specialist training within the UK funded by the public. She warned that raising employment costs could disproportionately affect smaller general practices, leading to reduced capacity and ultimately harming patient access to services.
In the social care sector, Jane Townson, chief executive of the Homecare Association, emphasized the financial and operational challenges of employing overseas workers, which have increased since the Covid-19 pandemic amid rising demand. She cautioned that a higher levy on low-paid workers could result in reduced access to home care, increased hospital stays, exploitation of workers, and potential provider failures that would shift costs back to the public sector.
The education sector could also face significant impacts. Approximately 6% of teachers in England are non-UK nationals, many serving in secondary schools and in subjects with recruitment difficulties, such as modern languages and physics. James Zuccollo, head of the school workforce at the Education Policy Institute, noted that the policy’s inclusion of settled-status holders could hamper both recruitment and retention of these teachers.
Universities may also be at risk, with Nick Hillman, chief executive of the Higher Education Policy Institute, warning that higher staffing costs could exacerbate financial pressures. Nearly half of UK universities are currently operating with deficits, and a substantial increase in wage bills could force tough spending cuts or, in extreme cases, lead some institutions toward insolvency.
Dr Alicia Greated of the Campaign for Science and Engineering cautioned that the policy could have detrimental effects on research and development, already hindered by high visa expenses and complex immigration procedures, diverting resources away from scientific investment.
Reform UK has not provided comment on these concerns to date.