Since Brexit, the UK’s immigration system has undergone significant reform, with a stronger emphasis on skilled work migrants, salary thresholds and economic contribution. A new report from the Migration Advisory Committee (MAC) adds important evidence to this debate, concluding that skilled migrants arriving in the UK after Brexit are likely to deliver a substantial long-term fiscal benefit to the country.
According to the MAC’s latest analysis, skilled workers who entered the UK on Skilled Worker visas in 2022–23 could contribute an estimated £47 billion to the public finances over their lifetimes, assuming they remain in the UK. This finding challenges some prevailing assumptions about migration and raises questions about the direction of current immigration policy.
Why Skilled Migrants Contribute More Than Expected
One of the report’s key findings is that the fiscal contribution of skilled migrants has been consistently underestimated. While visa applications require employers to declare a base salary, many migrants particularly those in higher-paying sectors go on to earn significantly more than initially stated. Bonuses, promotions and career progression mean that their actual earnings often place them in much higher tax brackets.
As a result, these workers pay more income tax and national insurance than previously assumed, increasing their net contribution to public finances. Over the course of a lifetime, the average skilled migrant arriving in 2022–23 is projected to contribute around £931,000 to the UK public purse, far exceeding the contribution of a UK-born worker of the same age.
Lower-Paid Skilled Workers Still Pull Their Weight
The report also provides a more nuanced picture of lower-paid skilled workers, such as those employed in social care. While these migrants contribute less in absolute terms than top earners, their overall fiscal impact is broadly comparable to that of UK-born residents in the same age group. Crucially, MAC found no evidence that care workers or other lower-paid skilled migrants impose a greater cost on public services than UK residents.
Length of Stay Matters
A central conclusion of the report is that how long migrants remain in the UK significantly affects their fiscal impact. Skilled workers who leave after only a few years contribute far less overall than those who settle permanently. MAC estimates that if a skilled migrant departs after a short stay, their lifetime fiscal contribution may fall to around £174,000.
For lower earners, temporary migration tends to be more fiscally advantageous, as long-term costs such as pensions and later-life healthcare are avoided. However, for higher earners, long-term residence amplifies the fiscal gains they generate, making settlement economically beneficial for the UK.
Policy Tensions and Falling Migration
These findings sit uneasily alongside the government’s current immigration proposals, including plans to extend the qualifying period for indefinite leave to remain from five to ten years. If long-term residence increases fiscal benefits particularly among high earners, policies that discourage settlement may unintentionally reduce the overall economic return from skilled migration.
This tension is especially relevant given the sharp decline in net migration. Official figures show that net migration fell by almost 80% in the year to June 2025, following a peak in 2023. While this reduction may align with political commitments, it raises questions about the long-term impact on the UK labour market, tax base and public finances.
Looking Ahead
MAC has described this report as its first comprehensive fiscal analysis of a specific immigration route. Future studies are expected to examine other visa categories, including global business mobility routes and humanitarian pathways, which could further inform the policy debate.
What is clear from the current evidence is that post-Brexit skilled migration is not merely filling vacancies, it is delivering measurable, long-term value to the UK economy. As immigration policy continues to evolve, balancing control with economic pragmatism will remain one of the central challenges for policymakers.
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