Select Committee on Economic Affairs Written Evidence


Memorandum by the London Borough of Hammersmith and Fulham

  Hammersmith & Fulham has strong historic links with the Eastern European community going back many decades. The borough has therefore attracted large numbers of eastern Europeans since 1989, the numbers having increased significantly since 2003.

  Eastern European, and particularly Polish, migrants make a valuable contribution to the local economy. Many, if not most, of recent visitors are employed in jobs requiring low to moderate skill levels—according to Home Office statistics almost half are employed in the hotel and catering trades. There is no evidence that they are having a negative impact on the local labour market, as many of the jobs they are taking up do have significant vacancy rates. There is evidence, however, that a minority of new A8 migrants are arriving unprepared for life in a foreign country and unable to find employment and accommodation. Some have alcohol problems and have boosted the local population of street drinkers. They tend to be younger and more prone to anti-social behaviour than the more traditional street drinkers in the Borough.

  This minority of new migrants, who find themselves unemployed and living on the street or in squats, is placing a burden on public services. The street drinkers are tying up the resources of the police Safer Neighbourhood Teams, which are having to deal with complaints of anti-social behaviour and public drunkenness. Homeless migrants are placing greater burdens on local hostels and day centres funded by the Council and central Government. The largest local homelessness project has recruited Polish speaking workers to deal with the increased demand from new Polish migrants unable to find work or accommodation.

  The additional burden on local public services and community organisations is compounded by the inadequate migration data currently collected by the government, which greatly understates the numbers of migrants moving through the Borough.

  The data does not even seek to capture short-term migration (those staying less than 12 months) yet these migrants will make use of public services, particularly those that are unable to find work.

  The Office for National Statistics has, this year, changed the way in which the migrant population is calculated, which has led to a reduction in the estimated population of Hammersmith and Fulham of almost 9,000 people. Bizarrely, the revised "official" figures suggest that there was less overseas migration to the borough in 2005-06 than before A8 accession. In terms of net gains the new data suggests a figure of only 1,180 compared to a figure more than twice as high, 2,580, in 2001-02. Given the obvious substantial increase in the numbers of Polish migrants in the Borough over recent years, this reduction in the estimate is clearly wrong and it will result in a significant shortfall in the Council's Formula Grant from next year. The Council is facing an increasing burden on its own services, and on those provided by local voluntary sector agencies which it funds, as a result of increased migration from Eastern Europe, yet the Government's inadequate and inaccurate data collection on the local migrant population will result in cuts to the Authority's annual budget.

1.  INTRODUCTION

  1.1  Hammersmith and Fulham is a small and densely populated west London borough with a population of 171,400 people (Office of National Statistics [ONS] Mid Year Estimate 2006). It is a popular place to live and work with over 70% of local people satisfied with the area (2006 Best Value national survey). The Borough offers a range of cultural attractions in the three town centres of Hammersmith, Shepherds Bush and Fulham and on the Thames-side. It has a net revenue budget of £180m.

  1.2  Between 2001 and 2006 the population is estimated to have grown by a moderate 1.2%, which is a lower increase than Inner London (4.0%) or Greater London (2.6%). The Greater London Authority's 2006 projections indicate that the Borough's population will grow at a steady rate in future years, but these projections will be revised in the light of recent ONS revisions to population estimates. The current data suggest a high projection of 184,800 in 2011 and 189,000 in 2016 and a low projection of 181,000 in 2011 and 183,000 in 2016. Over the next ten years, the largest percentage population increases are projected in the 40 to 54 age group, followed by the 5 to 19 age group. This growth in population and the changing age distribution will place new demands on local public services such as education, health and housing.

  1.3  The Borough has a relatively young and ethnically diverse population with a higher proportion of young adults aged 25-39 (37%) than London and the rest of the country. 27% of households consist of a single person under pensionable age and only 22% of households contain dependent children. Just over one in five residents are from non-white ethnic backgrounds, 5% were born in Ireland and there is a well-established Polish community. Some 90 different languages are spoken in local schools. London's place as a world city means that the Borough will continue to be home for many diverse groups of people, of different nationality, ethnic origin, religion, and culture.

  1.4  Hammersmith and Fulham has a very visible presence of Eastern European nationals on its streets. By far the greatest majority are Polish. This reflects the fact that the Borough has a long and proud history of Polish migration to the area and a wide range of Polish businesses and services have developed in Hammersmith and Fulham as a result.

  1.5  The Polish Cultural Centre, within sight of Hammersmith Town Hall, is the largest Polish cultural institution outside Poland. The close historical tie between Poland and Hammersmith and Fulham is demonstrated by the fact that there is a Polish eagle on the Council's mayoral regalia. The Council is proud of the established Eastern European community, which is an essential part of the fabric of the borough's life, and welcomes the beneficial contribution of the new accession state nationals to the local economy and to the social and cultural diversity of the area.

2.  NUMBERS AND CHARACTERISTICS

  2.1  These historical ties, along with the various Polish businesses, services and community organisations, act as a magnet for new Polish migrants arriving in the Capital. Minibuses arrive on a regular basis from all parts of Eastern Europe. Regrettably, this migration, whilst making a very welcome contribution to the Borough, has also carried with it a number of associated problems. Last year the Broadway Centre (a local homelessness project) recruited some Polish-speaking volunteers to help with the engagement of clients at their day centre. The Broadway funds an employment project to assist people who have found it hard to get work and this project has been seeing an increasing number of Polish migrants.

  2.2  The area has become a locus for people seeking casual non-registered employment. Last year police estimated that around 150 new people were arriving in the Borough each week. Until a year ago, "gangmasters" turned up daily in the early morning to pick their workers from those 50-70 assembled in King Street, Hammersmith. This happened within sight of the town hall and led to many complaints. Due to a dispersal order, issued by the council, and the focused attention of the police, the public nuisance created by congregations of men hanging about for long periods on street corners has now been reduced. Although less visible this activity still continues, albeit in a more dispersed manner.

  2.3  Many of the new migrants resort to sleeping in squats in large numbers or, if employed in the building trade, sleeping on site. An eviction from one property in Hammersmith pushed 30 people into short term rough sleeping behind Marks & Spencers—to subsequently disperse slowly over the next few days.

  2.4  LBHF's Alcohol Coordinator reports that street drinking by this group is regarded as the most troublesome and the most likely to result in anti-social behaviour and complaints from the public. Numbers of A8 street drinkers appear to be on the increase and there are now several fluid groups across the Borough consisting of 20-30 people. A street count on one day in August 2006 revealed 106 people street drinking, 38 of whom were identified as of Eastern European origin.

  2.5  Earlier in 2006, the Royal Borough of Kensington & Chelsea and the London Borough of Hammersmith & Fulham commissioned a joint strategic review of rough sleeper services which revealed that 150 clients of the Broadway Centre were Polish and that 78% had no usable English. This equates to approximately one third of the clients attending the centre. The evidence at the Broadway Centre suggests that people unable to find work are resorting to street drinking. The number of A8 clients using the Broadway Centre in Shepherds Bush who have been verified as sleeping rough in the Borough increased from 11 to 38 from 2005 to 2006. Most of those people seen by the Broadway Centre have alcohol issues and some have mental health problems. Most would have come to the UK with these problems and more are likely to drift into rough sleeping if unable to find work.

  2.6  The Broadway Centre provides health care services and general access to their day centre for people from accessional states who they assess as vulnerable. If 150 are currently assessed as vulnerable a higher number must be presenting in search of assistance. They are allowed to use the Centre's facilities until the assessment is completed.

3.  SECTORS AND OCCUPATIONS

  3.1  Nationals of the A8 countries who wish to take up employment in the UK are generally required to register with the Workers' Registration Scheme (WRS). The self-employed are not required to register. The data does not provide a measure of migration in that it is simply a gross figure for workers who apply to join the WRS. If a person leaves the country he or she is not required to de-register, so even for a recent period some of the data is historic.

  3.2  The Home Office has supplied data on the detailed occupational breakdown of workers who have applied to join the WRS from W6, W12 and SW6 during the period 1/5/04 to 30/6/06. The total applications in the data is 2,610.

  3.3  The main occupational groups, covering nearly three quarters of applicants, are in the following categories:

    —  catering—27%

    —  hotel staff—18%

    —  professional/managerial—11%

    —  retail—6%

    —  labourers, drivers, operatives—5%

    —  caring professions, teachers—5%

4.  LABOUR MARKET

  4.1  The majority of workers applying to register are, therefore, of low or moderate skill levels. Three of these broad groups are ones which DWP data from May 2005-June 2006 identified as having significant levels of vacancies. Catering, retail and labourers/drivers constitute 38% of those applying for the WRS, and these occupations constitute 39% of the vacancies notified over the past year. It can therefore be concluded that at least four in ten of A8 applicants to the WRS in Hammersmith & Fulham are within occupations for which there are local vacancies.

5.  PUBLIC SERVICES

  5.1  Migrants from the A8 countries access the full range of local authority services. Examples are set out in this section of particular service impacts. A serious concern for Hammersmith and Fulham is that the current local government funding regime does not adequately recognise the demands placed on the council from A8 migrants.

  5.2  Population data is a key driver of the amount of government grant support that local authorities receive through the Local Government Finance Settlement. Our view, as expressed in the section on data improvements, is that the current data provided by the Office for National Statistics has failed to keep pace with the population movements associated with the A8 countries. No allowance has been made for the impact of short-term migrants, those that reside in Britain for less than a year, whilst the data on inwards and outwards migration appears to be flawed. The net result is that government grant support has failed to keep pace with the demand for public services.

Education and Schools

  5.3  Schools data shows a degree of increase in Polish pupil numbers 2002-07, though not of the same scale as increases in numbers of voters or NI registrations. Among nursery and primary schools, where the great majority of pupils live within the Borough, there has been an increase from 114 in 2002 to 152 in 2006, a 33% increase. Although this is a significant proportional increase, numerically the increase is relatively small. This bears out the assumption that most recent economic migrants from Poland have been single men rather than family units, although this may change over time.

  5.4  Secondary school numbers are almost constant, (though with a jump of 24 in 2006-07) but here most pupils in fact travel in from outside the Borough, so the data here is inconclusive. Here 61% of Polish-speaking secondary pupils in 2006 attend London Oratory, where 91% of pupils travel from outside the Borough.

  5.5  Data is available for 2007 for all A8 languages. The totals are 8 children in nurseries, 220 in primaries, 241 in secondaries and 3 in special schools. Polish-speaking pupils, therefore, form 89% of the pupils in schools originating from A8 countries.

Table 1

NUMBERS OF POLISH-SPEAKING PUPILS AT BOROUGH SCHOOLS 2002-07


2002
2003
2004
2005
2006
2007
Overall % of
pupils who live
in the Borough

Nursery
0
2
2
6
3
5
98
Primary
114
111
107
138
149
187
95
Secondary
192
186
191
197
198
222
44

Source: LBHF Childrens Services Dept


Homelessness and Advice

  5.6  Hammersmith and Fulham received a grant from DCLG to address issues relating to A8 migrants. It was used to deliver an intervention for A8 street populations who were engaging in rough sleeping, street drinking and begging but who were not entitled to interventions or public funding. Many of these individuals were identified as highly vulnerable. The Council is working with the Barka Foundation, a Polish social inclusion charity, as a partner in a six month pilot working through the Broadway Centre and the Upper Room, which helps with IT training, employment, legal advice and documentation. The pilot has gone well and is due to end in November. The Council feels that it is vital that such a support initiative is continued on a wider geographical basis with the participation of other Boroughs and/or the GLA or London Councils to avoid one Borough becoming a magnet for migrants.

  5.7  As well as the Broadway Centre and the Upper Room which the Council provides funding for, the East European Advice Centre is also in the Borough and is another agency which the Council supports. It has been inundated with the demands of the growing group of East European migrants that visit to seek advice and help. Being a London wide resource that just happens to be based in the Borough, however, only a relatively small proportion of its clients are Borough residents and so, again, there is a need for wider collective funding and service provision across a wider geographical area.

6.  IMPROVEMENTS TO DATA

  6.1  Hammersmith & Fulham has a long-standing Polish community, second in numbers only to the adjacent Borough of Ealing, so it is natural that large numbers of Polish migrants following accession in 2004 would come here. The strong impression from daily life in this area is that this has undoubtedly been the case. This has not, however, been fully reflected in official migration data.

  6.2  There is no way of properly measuring A8 migration, or indeed any international migration. The sample used in the International Passenger Survey (IPS) is too small (the total national sample in 2005 was only 2,965 in-migrants and 781 out-migrants), and the same is the case for the Labour Force Survey (LFS), which is now being used to determine geographical distributions of in-migrants and where data is only available for groupings of local authorities.

  6.3  Furthermore, official estimates measure only long-term migrants, ie those staying for a year or more. Short-term migrants, of which there are many within the A8 flows, are completely missing. Workers' Registration Scheme data for Hammersmith & Fulham for the period May 2004 to March 2007 indicates that 37% of A8 migrants registering were intending to stay for less than 12 months, so that over one third of A8 migrants would be missing from official counts. Short term migrants, of course, still use public services.

  6.4  The Office for National Statistics (ONS) recognises these deficiencies and has been working on their improvement. The necessary improvements, however, have not been fully implemented and an interim solution has been devised by switching from IPS to a combination of IPS and LFS, which substitutes one set of inadequate data for another and there is still no measurement of short-term migration.

  6.5  The net result of this change has been a disaster for H&F in that, as a result of adjustments to estimates of international migration, the population of the Borough in mid 2006 is estimated to be 8,500 fewer than the previous estimate for 2005. The adjustment to previous Mid Year Estimates 2002-05 has resulted in a net loss to the Borough over that period of 8,900 people, caused by reductions in estimated in-migration of 4,400 and increases in estimated out-migration of 5,400. This, in turn, will have a potentially disastrous impact on the Council's finances when the Government's 2004-based Sub-National Population Projections are released, which will be used to determine Formula Grant.

  6.6  The absurdity of the figures is that the revised official data now suggests that overseas migration to the Borough was less in 2005-06 (a total of 5,680) than before A8 accession (between 6,600 and 7,000 a year in the 2001-04 period). In terms of net gains the new data suggests a figure of only 1,180 compared to a figure which is more than twice as high, 2,580, in 2001-02. This is plainly wrong in the context of the recent wave of A8 migration.

  6.7  The main indicators of A8 migration are National Insurance (NI) registrations and data from the Workers Registration Scheme. Since 2004, 4,330 A8 workers have registered for NI in H&F and 4,080 have registered on the WRS. This can be contrasted with the fact that there were only 200 NI registrations from A8 countries in 2002-03, so we know that there has been a very substantial increase in A8 migration. Yet in the latest population estimates by ONS the net gain to the Borough due to international migration for 2005-06 is estimated to be at the same level as pre-accession, in the years 2001-03.

  6.8  Among London Boroughs, Hammersmith & Fulham ranks 5th highest in numbers registering on WRS between May 2004 and June 2007 and 12th on NI registrations. In the ONS estimates of international in-migrants 2005-06, however, Hammersmith & Fulham ranks 14th and in terms of net international migrants as a % of total population, Hammersmith & Fulham ranks as low as 19th among London Boroughs.

  6.9  The gap may indeed be even wider than this. NI and WRS data has known limitations. Not everybody registers—the self employed for example are not required to register for WRS, and of course dependants are not registered in either scheme. An even greater drawback may be that the place of initial registration may not reflect current place of work or residence. A person registering in Westminster, for example, may actually soon after be living or working in Hammersmith & Fulham. So it may well be that registration data may under-count numbers for this reason, as well as the fact that not everyone registers at all in the first place.

  6.10  The indications are, therefore, that for the migrants that ONS purports to measure, ie those staying for 12 months or more, the estimates are likely to be erroneous. Furthermore, there is a large number of migrants staying for shorter periods who are not measured at all.

  6.11  As well as reductions in estimated in-migration, ONS has increased the number of estimated international out-migrants so that the Borough has the 7th highest figure among the London Boroughs: in terms of out-migrants, as a % of total population, Hammersmith & Fulham ranks 4th. This is not so much based on hard data but on a regression model using the 2001 Census. There is no common sense reason for supposing that 5,400 more people have left the Borough over the 2002-05 period than was previously estimated. So here again ONS estimates are likely to be erroneous.

  6.12  The above is a demonstration of the fact that although ONS are working to improve estimates of migration, these improvements are by no means fully worked through. The recent revisions are an inadequate interim solution which still produces deficient data and the application of which has had a major negative economic impact on some local authorities, of which Hammersmith & Fulham is one.

  6.13  In order to more fully understand what is happening in Hammersmith & Fulham with regard to A8 migration, including the extent to which it consists of short-term or repeat migrants, the Council is commissioning some research, the results of which will be published next year.

28 September 2007



 
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