Reform UK's plan to impose an annual levy on employers for overseas staff would severely impact the NHS, social care, education, and universities, according to experts. The policy, announced by Nigel Farage's party, includes a higher rate of employer national insurance and a separate annual charge for employees without a UK passport, including EU nationals with settled status, but exempts Irish passport holders.
No Exceptions for Key Sectors
The Guardian has been told that there will be no exceptions for sectors with frequent staff shortages and reliance on overseas workers, such as the NHS and education. Reform argues the policy is designed to encourage hiring British workers, but thinktanks and professional groups say these workers are often not available in sufficient numbers.
The King's Fund, a leading health thinktank, noted that 20% of NHS England staff are not UK nationals. Suzie Bailey from the King's Fund said: "I think, ultimately, it would impact on the care that the service is able to give, because that money would have to come from somewhere, so other cuts would have to be made."
Impact on Healthcare
Prof Victoria Tzortziou Brown, president of the Royal College of General Practitioners, warned that penalising overseas GPs could be counter-productive, as many have trained in the UK at public expense. She said: "Any policy that further increases costs or reduces workforce capacity ultimately risks affecting patients' access to care."
Jane Townson, chief executive of the Homecare Association, highlighted that employing overseas care staff is already expensive and complex due to rising demand and a lack of UK workers, especially post-Covid. A higher levy for low-paid workers would particularly affect the care sector, she said: "Providers cannot absorb this. The predictable risks would be reduced access to home care, causing harm to individuals and families."
Effects on Education and Universities
Nearly 6% of teachers in England are non-UK nationals, disproportionately represented in secondary schools and subjects with shortages like languages and physics. James Zuccollo from the Education Policy Institute said: "A measure that includes settled-status holders would operate not only as a brake on future recruitment but as a charge on staff already teaching in our schools."
Nick Hillman, chief executive of the Higher Education Policy Institute, warned that universities, many spending up to 60% of their budget on salaries, could face significant strain. With nearly half running deficits, higher costs could lead to cuts or even bankruptcy. He said: "No UK university has ever yet gone bust, though some are close, so higher wage bills could, in extreme circumstances, also push one or more to the wall."
Broader Research Impact
Dr Alicia Greated from the Campaign for Science and Engineering said the plans could be "highly damaging" to the research and development sector, as high visa costs already strain organisations, diverting funds from research. Reform UK was contacted for comment but did not respond.
