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Migration Salary Impact in Outer London

Questions to the Mayor of London – answered on 16th March 2020.

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Photo of Fiona Twycross Fiona Twycross Labour

Do you share my concerns that the Government’s proposed £25,600 salary threshold for its points-based migration system may disproportionately harm Outer London boroughs where employers typically pay lower salaries than their inner London counterparts?

Photo of Sadiq Khan Sadiq Khan Mayor of London

Research for the Financial Times finds 10 per cent of all employees in Outer London — more than 200,000 people — are EU nationals who would not be eligible to work in the UK under the new rules making it the region most exposed to potential labour supply issues post-Brexit. https://www.ft.com/content/56c95706-54c4-11ea-8841-482eed0038b1

GLA Economics recently published research on the potential impacts of new immigration policies in London, drawing on data provided by the Office for National Statistics. However, it was not possible to include the impacts on outer versus inner London in the scope of the research:

https://www.london.gov.uk/business-and-economy-publications/potential-impacts-skills-based-immigration-policies-london

Current Issues Note 59 shows that the impact of a reduction in the availability of EEA workers is not only a function of the skills and salary thresholds faced by different occupations but also depends on the characteristics of an occupation, industry and wider economic factors.