Memorandum by the Audit Commission
SUMMARY AND
RECOMMENDATIONS
Summary
1. The Audit Commission welcomes the opportunity
to provide evidence to the House of Lords Select Committee on
Economic Affairs. Our submission is based on our recent research
on the local impact of migrant workers, published in January 2007.
The research does not cover broader migration issues.
2. Much of our work focuses on migrant workers
from the eight states in Eastern Europe who joined the European
Union in May 2004, whose speed, scale and geographical spread
on arrival was unpredicted. It examines how well local authorities,
the police and health services are anticipating, identifying and
managing local change.
3. This submission provides evidence in
response to question 9 relating to the impact on public services.
It covers:
— the importance of place, given local
differences in impact;
— the limitations of local population
estimates and associated data about recent migration, and the
lack of quantifiable information about demand for, and use of,
public services by different groups of migrants;
— the different kinds of demand on
public services that can be associated with migrants;
— the contribution of migrant workers
to public services, particularly in the health and care sector;
and
— the lack of data on possible compensating
savings to local authorities resulting from British citizens moving
abroad.
Recommendations
4. Local authorities need to take a lead
role in coordinating and delivering locally tailored responses
by:
— understanding how local populations
are changing by analysing national and local sources of data and
intelligence;
— balancing enforcement of regulations
with encouragement for employers and landlords to improve standards;
— addressing language, advice and information
issues;
— minimising local tensions, responding
swiftly to emerging problems and maintaining contingency plans;
and
— modifying services to meet the diverse
needs of a changing population.
5. The government and regional bodies could
help local areas more effectively by:
— coordinating activity across government
departments to support local areas in respect of data and information
and to prepare for future increases in migration;
— analysing trends and demand for skills
and training regionally and coordinating regional information,
advice and guidance; and
— developing a regional approach to
address the issues raised by migrant workers in housing, planning
and economic development strategies and teaching English to adults.
DETAILED RESPONSE
Our evidence on local economic impact
6. The Commission reviewed available macro-economic
studies on the impact of migration, all of which show migrant
workers as net contributors to the economy. We did not carry out
any additional original economic research. Employers were positive
about the impact of migrant workers on local economies. Migrant
workers often took job vacancies that had been difficult to fill
and they were generally considered to be reliable workers. We
found no local statistics to support suggestions that migrant
workers were suppressing local pay levels. Subsequent detailed
local research on the East and West Midlands published in 2007
shows that local impact differs.
The importance of place
7. The extent and effects of migration vary
considerably from area to area. In some housing market renewal
areas, which have falling populations and a low demand for housing,
inward migration has helped to increase demand and may help with
regeneration. These housing issues are different from those faced
by areas with significant housing shortages. In some areas, migrant
labour is more seasonal than in others and workers are often provided
with temporary accommodation by employers.
8. Where migrants live in areas with cheaper
housing but travel daily to other areas for work, it is harder
for authorities to work closely with employers and to anticipate
changes in local populations. This is relevant when firms recruit
substantial numbers of migrant workers or lay-off workers at short
notice. Where houses have been provided by employers or agents,
lay-offs can lead to immediate homelessness for migrant workers
and their families. The impact on local councils can be sudden
when migrant workers and their families are made homeless.
9. Local authorities need to understand
local differences and manage associated local changes for the
benefit of existing and new populations. They should know and
understand their communities, anticipate local changes and co-ordinate
local responses. Strong links with local employers are also vital.
Local population estimates and local service demand
10. Although macro-economic studies show
that the economy as a whole benefits from migrant workers, the
benefits may not be equally felt in all local areas. Government
grants to local public agencies are linked to local population
statistics, which do not adequately reflect all local migration,
particularly international migration. This is accepted by the
Office for National Statistics, and a programme of improvement
to the data is under way. However, in the short term it may be
that some local areas have experienced population increases through
migration that are greater than that for which they receive government
grant.
11. There is considerable transience among
some migrant groups, making population estimates harder. Some
data sources, including new national insurance numbers and registrations
on the worker registration scheme, give an indication of who moves
where, but they do not say how long they remain. Research by the
Social Exclusion Unit showed that local administrative records
are poor at tracking transient populations and some people may
not appear on any local databases.
12. The Commission found limited evidence
for increased demand on local public services from migrant workers
and little evidence of additional expenditure resulting from their
arrival. The increase in demand is most noticeable in relation
to interpreters, which particularly affects police services, and
in education, with increased demand for adult English classes
and additional children in schools. Some local authorities have
increased their focus on regulating standards on caravan sites
and houses-in-multiple-occupation (HMOs). This has required additional
resources.
13. A number of authorities in areas with
a high level of change have supported specific projects to help
recent arrivals. However, many of these authorities have successfully
bid for grants from regional and national government or other
funding agencies, so there is limited impact on local budgets.
Specific demands on services: Education
14. Additional demand for English lessons
from adults does not necessarily increase costs; it can just mean
fuller classes and longer waiting lists or waiting times. Some
areas have chosen to spend more of their adult education budgets
in this area. Recent national changes restrict the number of people
eligible for free classes, which may change local demand.
15. Language is critical both to communication
and better integration, and any costs are likely to be matched
by benefits and savings elsewhere. Immigrants with English language
skills are less likely to be exploited and more able to help themselves.
They are less in need of interpreters or translators (which are
a cost to public services) and will have a wider range of better
paid job options. A recent survey of Roman Catholic migrants in
London showed that those with good English language skills earned
more. Many migrants start with jobs below their educational and
skill level. Language skills, alongside qualification recognition
or conversion, can help them to use their existing skills to the
wider benefit of the economy.
16. Recent Home Office immigration statistics
show an 11% increase in grants of settlement[1]
in the UK for children, to 45,445 (25% of all settlement) in 2005
compared with 2004. These statistics do not show levels of spoken
English. Evidence for an increase in the number of children of
accession state migrants is available from the Workers Registration
Scheme.
17. Nationally and locally, the annual pupil
census returns identify children in maintained schools for whom
English is a second language, but do not identify children by
nationalities. As school funding is mainly linked to pupil numbers,
the full financial costs of additional pupils are not borne locally.
There is also some additional grant available for those who do
not speak English. However, this specific grant was provided for
three years on the basis of rolls at January 2004 and, as a result,
areas where considerable numbers arrived after that date did not
get additional grant funding.
Specific demands on services: Housing
18. The pressure on housing stock from migrant
workers is less than their numbers might suggest. Most recent
migrant workers from the accession states have taken relatively
low paid jobs. Available evidence from numerous local surveys
and the Labour Force Survey shows that migrants live mainly in
the private rented sector and often share accommodation. Others
live in accommodation provided by employers, for example on farms
or in hotels. However, the increase in demand for affordable private
rented housing will affect others reliant on that sector for housing.
Increased competition for private sector lettings can drive up
rental values. This can have a financial impact on local authorities
that have been using private sector lettings to temporarily house
homeless families.
19. The increase in migrant workers housed
by employers increases the need for appropriate advice and support
for private tenants and for effective regulation of HMOs, including
enforcement of standards in some cases. Findings from the Commission's
housing inspections show that this need is not always being met.
Private sector work, and particularly enforcement work, is the
weakest area of housing performance among local authorities.
20. Some foreign nationals can apply for
social housing and some may be eligible for homelessness assistance
under the Housing Acts. However, in 2006 only 5% of all social
housing lettings went to non-British nationals.
21. In central London the arrival of some
nationals of the accession states has put pressure on services
provided to help rough sleepers. The services concerned are often
run by the voluntary sector rather than the statutory services.
Many of the individuals concerned are not eligible for assistance
from councils because of the benefit restrictions introduced alongside
the worker registration system.
Specific demands on services: Health and social
care
22. The majority (82%) of migrants from
the accession states who registered as workers between 2004 and
2007 were aged between 18 and 34. Most will be making National
Insurance contributions and this age group does not place much
demand on health and social care services. However, there is no
local measurement of such demand by Primary Care Trusts or by
national health data returns. Where there are health needs there
may be some extra demand on interpretation services.
Specific demands on services: Community safety
and policing issues
23. Our research found that data on the
nationality of those who commit crimes[2]
or are victims of crime is not recorded nationally. At a local
level some forces have reported increases in race hate crimes,
which can involve migrants. In some areas the Commission has found
that the police had particular concerns about vehicle and driving
standards.
24. Many local diversity officers believe
that crimes against migrant workers, including race hate crimes,
are under reported. This is either because they do not know how
to report them or because they do not want to get involved with
the police. Research by the Joseph Rowntree Foundation supports
this. Where there is a large and mainly transient community of
migrant workers, it is difficult for local police to establish
the levels of trust and make the local contacts that support neighbourhood
policing.
25. We also found that the police are often
the first local service to become aware of an influx of new arrivals.
This can be due to increased reports of anti-social behaviour
made by local residents; concerns about tensions between nationalities;
increases in race or hate crimes where migrant workers are victims;
or because of road safety issues.
26. There has been particular pressure on
local police and, to a lesser extent, probation interpretation
budgets, and an associated increase in demand on police and probation
time.
Migrant worker contribution to public services
27. Immigrant workers have made a major
contribution to health and care services for many years. They
have filled skill gaps and helped to limit pay inflation. Current
estimates are that migrant workers make up 13% of the social care
workforce and 18% of the health care workforce. Migrant workers
also play an important role in the construction industry, although
there are no figures showing the nationality of the workforce
on current public sector projects.
The balance of migration
28. Migrants from elsewhere in the European
Union access a variety of benefits within the UK, but British
citizens have reciprocal rights within the EU and some other countries
to health, care and education services. Any attempt to quantify
additional demand in the United Kingdom needs to include an assessment
of the absence of demand from those who have moved abroad.
30 September 2007
1 A grant of settlement is made when a person subject
to immigration control is given permission to remain in the UK
indefinitely. Back
2
Prisoner nationality is recorded, but numbers will be affected
by a range of issues including whether or not there are agreements
between countries on where sentences should be served. Back
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