Select Committee on Economic Affairs Minutes of Evidence


Memorandum by the Local Government Association

  1.  The Local Government Association promotes better local government. It works with and for member authorities to realise a shared vision of local government that enables local people to shape a distinctive and better future for their locality and its communities. The Local Government Association aims to put local councils at the heart of the drive to improve public services and to work with government to ensure that the policy, legislative and financial context in which they operate, supports that objective.

INTRODUCTION

  2.  The Local Government Association welcomes the committee's interests in this matter. There is now wide consensus that the official statistics on international migration and therefore on population are inadequate nationally and locally. We welcome steps initiated by the Office for National Statistics to find long term remedies to address these weaknesses. However, we believe that alongside this, urgent action is necessary to better use available data to understand recent and rapid local population changes resulting from migration. This is because the evidence clearly shows that the changes are widespread and are placing demands on local public services that are not reflected in funding formulae for these services. They rely on out of date and inaccurate population figures.

  3.  Our submission particularly draws on a report commissioned by the Local Government Association from the Institute for Community Cohesion (ICoCo), entitled "Estimating the scale and impacts of migration at the local level." The report is due for publication in October. The work reviews the available evidence on the scale and nature of recent population change and impacts on local public services. It is based on responses from 100 local authorities in a specially commissioned survey conducted in August 2007 alongside desk research evaluating sources of population data and a wide range of existing local and national studies on this subject.

  4.  The submission addresses a selection of the questions to which the inquiry seeks answers. These are questions 8, 9, 10, 13 and 15. These questions provide the framework for the response.

How does immigration affect the public finances? [Question 8]

  5.  In relation to direct impacts on public finances, taxes paid by in-migrants flow to the centre but demands on services and the wider impacts on communities occur locally. The ICoCo report states that "it is difficult to see how far [and we would add whether] the [financial benefits] have passed to the local level and at what rate".

  6.  In-migration has increased the demand, and hence the amount spent, on a range of local services (detailed in the next section). The distribution of central government funding to local authorities is intended to take account of population size and hence likely demand. Data inadequacies described below have vitiated this process, for example, in calculating the revenue support grant. More specifically, current funding formulae use 2004-based population projections for local authorities, which therefore do not take account of the increase in in-migration, particularly from Eastern European Accession countries, since then.

  7.  Standard definitions of in-migrants, and methods used to measure migration, fail to capture the reality of service pressures in two important ways. First, the definition of migrants misses those who state the intention of staying for less than 12 months. There is considerable evidence, both quantified and anecdotal, that suggests that there is substantial "short-term" migration to the UK. Second, the ICoCo report found considerable pressure on services in some authorities from population turnover, or "churn", even where net migration change was not great.

How has immigration affected public services? [Question 9]

  8.  Respondents to ICoCo were mainly positive about the overall impact that in-migration had on the local economy. Often in-migrants were found to be sustaining local businesses, and working in hard-to-fill occupations. In some instances authorities had positively encouraged in-migration as a solution to imbalance in the local population and workforce profiles. Nevertheless, population growth has resulted in some areas in pressures on services, and sometimes in resentment and tensions on the part of host communities. Particular demands vary depending on the demographic characteristics of the migrant—for example whether they have children and require children's services; whether they are relatively young and thus less likely to require health services. This section describes the main impacts as reported by authorities.

  9.  "Churn" in schools has created pressure around translation services, numeracy and literacy of young children, understanding cultural differences, mid-term arrivals, lack of records and assessments and a range of other needs. The reduction in Ethnic Minority Achievement Grant funding is a further concern. The Association of London Government (2005) quantified the additional administration for registering new children at non-standard times as £400 for primary children and £800 for secondary age, but this excludes other unquantifiable work for extra learning and teaching support staff and liaison with other services to meet the child's needs.

  10.  It can be highly complex to investigate the family situation of transient families and ensure effective safeguarding of children, the complexities being exacerbated by language difficulties and cross-cultural issues. The range of agencies involved in child protection face particular challenges where child mobility is high and records and assessments are not immediately available.

  11.  Language barriers mean that meeting the basic information needs of migrants, translation and interpretation, supporting complex advice needs and communicating in emergencies are issues faced by all public sector partners. There is insufficient provision of English as a Second Langauge (ESOL) to meet the increasing demand. Part of the problem is the shortage of ESOL teachers and the more restrictive rules that have been announced around the funding of ESOL will make the problem worse (for example that more basic levels do not attract funding yet many migrants need to gain basic proficiency in English).

  12.  In those areas which are experiencing significant economic growth many migrants are living in overcrowded properties in a poor state of repair, sometimes with a high fire risk or other health and safety problems. One unitary authority estimates the cost of regulation and inspection at £400 per property. Inspection costs are also incurred for caravans and mobile homes, converted buildings and other accommodation arranged by employers. Demand on social housing has, as yet, been low but the costs of increased housing benefit processing and issues of homelessness and destitution are issues in some areas. The complexities of supply, demand, entitlement and need pose short and longer-term challenges.

  13.  Community cohesion is seen as a high priority by most respondents who were proactive in seeking to assess and meet the needs of migrants and there are many examples of good practice across councils and agencies. Many respondents reported tensions and different levels of conflict and had put action plans in place to give information to both migrants and the host communities, engaging with employers and housing providers and developing inter-agency approaches. A number of authorities were working with local media to provide accurate information on the size and characteristics of the in-migrant population.

  14.  Many authorities reported that migrants were more likely to be victims of crime than perpetrators, though underreporting was suspected, not least because many migrants had low confidence levels in the police in their home countries. Vehicle related crime including absent or forged documentation and drink driving is being addressed by information campaigns in some police authorities. Fire and Rescue services are also producing publicity in other languages, particularly regarding risks in multi-occupied dwellings.

  15.  The impact on health is increasing, albeit from a relatively low level given the age profile of the in-migrant population. Issues include inappropriate use of accident and emergency services instead of GPs and increased use of maternity services, often late, making planning difficult. Mental health needs are being identified particularly for asylum seekers and refugees who have experienced trauma.

  16.  Many authorities highlighted housing market issues, including the sharp rise in the price of cheaper properties, exacerbated by purchase to rent to migrants, a rise on homelessness and a decline in numbers of first time buyers. Sometimes these were ripple effects, originating in in-migration to neighbouring authorities rather than directly to their own. Several cited the need for good quality information to facilitate housing need projections.

  17.  The varying impact of immigration needs to be seen in the context of the continuing impact of the costs of asylum in dispersal areas, especially in relation to funding shortfalls for the costs of Unaccompanied Asylum Seeking Children leaving care and for those without recourse to public funds.

How does the impact of immigration vary across different regions of the UK? [Question 10]

  18.  The demands on services vary with the size and nature of in-migrant flows to a locality. In-migrants are not homogeneous. Some come to work, some to study, some to retire. Some travel as family groups, some come to join family already here and some travel alone. The flows come from many countries. In-migration from the A8 Accession states—and particularly Poland—has attracted much media comment. Yet the movement from A8 states in 2005-06 constituted only 16% of long-term migration (ie for more than 12 months—there is evidence of substantial shorter-term migration from A8 states in particular).

  19.  One reason for the attention paid to migration from the A8 states is that it has been more geographically dispersed. A substantial number of migrants from Poland, Lithuania, Slovakia and to a lesser extent other European states such as Portugal have gone to towns and rural areas with little previous experience of receiving international migrants. The map attached shows the distribution of A8 migrants registering for National Insurance numbers over the year 2006-07. Different sources would show slightly different patterns, but there is a clear concentration in an area stretching from Herefordshire to Norfolk, much of it rural but including towns such as Northampton, Peterborough and Boston. Alongside that, there is movement to towns which already have a significant proportion of people born abroad, such as Luton and Slough, and to some London boroughs.

  20.  In contrast, recent flows of migrants other than those from Eastern Europe have principally been to conurbations and university cities, as the other map indicates.

How can data on immigration be improved? [Question 13]

  21.  To answer this question we need to consider the ways in which currently available data are inadequate. In the first instance:

    —  Measurement of international migration at the national level is inadequate in that it is based on a survey with a small sample of migrants, and does not count short-term migration or (more understandably) illegal migration.

    —  The allocation of international migrant numbers to local authority level is based on evidence from the Labour Force Survey (which again has small samples at authority level) and the 2001 Census, coupled with assumptions about migrant behaviour.

    —  The methods for tracking migration within the UK (whether by UK nationals or international migrants) are questionable.

    —  A range of administrative data sources gives sometimes quite different indications of migrant flows at the local authority level (the ICoCo report shows that, for some authorities, estimates from National Insurance or GP records differed from the official ONS migration figures by a factor of four; and that school census records sometimes give substantially different indications of numbers to official population estimates).

    —  In a number of areas the official estimates simply do not reflect the experience of service providers on the ground.

  22.  The inadequacy of data currently available does not appear to be a matter of contention. The National Statistician, the chairman of the Statistics Commission and the governor of the Bank of England have all observed that statistics on migration are inadequate for public policy needs.

  23.  The ICoCo report makes a number of recommendations for improvement, to which we add some observations of our own.

  24.  The ICoCo recommends that the 2006 recommendations of the Inter-Departmental Task Force on migration statistics should get full financial and legislative backing, and be progressed with greater urgency, with full support from government departments. We would add that this support should include explicit ministerial commitment to the proposals. This should do much to improve statistics at a national level, and should improve estimates of short-term migration.

  25.  Action is also needed to improve estimates at local authority level and below. To this end ICoCo recommended that a working party be established to examine ways in which administrative sources could be adjusted to provide better information on migration (these sources including National Insurance, Schools Census, Higher Education Statistics Authority, Electoral Registration, Workers Registration Scheme and NHS Flag 4 data).

  26.  ICoCo recommended that departments should take a more consistent approach to making administrative data available at small area level (for example wards or postcode areas).

  27.  In addition, we would recommend a consideration of other countries' approaches to measuring international and internal migration. The UK is not alone in experiencing increased migration, and hence is not alone in grappling with problems of measurement. Other countries' solutions may not be appropriate—but equally there may be much to learn.

  28.  Finally, we would urge an element of triangulation in producing official population estimates. That is to say, results from initial modelling should be tested against other sources, and if possible evidence from other sources should be included in the modelling process.

To what extent have inadequate data affected public policy? [Question 13]

  29.  Inadequate data on migration has affected policy within local authorities in three broad ways:

    —  Erroneous population estimates for some authorities have affected the level of funding that the authorities have. The policies and priorities of those authorities have therefore been constrained.

    —  Well-targeted service provision depends on knowing the size and characteristics of the local population. Where the data are inadequate targeting will be less precise than it could and should be.

    —  An ill-informed national debate around numbers can have a negative effect on community cohesion.

Should more be done to help immigrants boost their productivity in the UK? [Question 15]

  30.  There is some evidence that a proportion of recent in-migrants to the UK are over-qualified for the jobs which they do. This is true of some migrants from Eastern Europe, for example. A better match between skills and occupations should benefit not only the individuals but the economy as a whole.

  31.  Moreover, if well-qualified in-migrants are able to move into jobs which better match their skills, the risk of them competing for lower-skilled jobs with members of the host community should diminish. This could reduce community tensions.

  32.  Language problems are often cited by local authorities as a barrier to a better match between skills and jobs in migrant communities. Many authorities cite problems with funding for English as a Second Language courses (as identified in paragraph 11). This is an area where government investment should yield a worthwhile return.




12 October 2007



 
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