Govt’s MAC Report says skilled migrants to add £47bn to UK economy

LONDON Dec 14: Skilled migrants who have arrived in the UK since Brexit are expected to deliver a £47bn boost to the economy over their lifetimes, according to a new report from the Migration Advisory Committee (MAC).

In its report, The Fiscal Impact of Immigration: Static and Dynamic Estimates for the UK, MAC found that high-earning migrants contribute more in tax than previously estimated, while lower-paid workers such as care staff make a fiscal contribution comparable to that of UK-born residents.

The analysis focused on migrants who entered the UK on skilled worker visas in 2022–23 and assumed they remained in the country long term. MAC estimated their lifetime net contribution to the public finances at £47bn.

A key factor behind the strong positive impact was that many top earners went on to earn significantly more than the salaries declared in their visa applications, particularly once bonuses were taken into account. As a result, their tax contributions were higher than expected.

• Total Contribution: Skilled worker and Health-and-Care visa migrants arriving in 2022-23 are expected to contribute £47 billion net over their time in the UK.
• High Earners: The top 10% of skilled migrants contribute substantially more, averaging £2.7 million each due to bonuses and stock awards not initially declared.
• Care Workers: Even lower-paid care workers contribute positively or neutrally to public finances, similar to UK residents in the same age group.
• Challenging Narratives: MAC Chair Professor Brian Bell noted these figures “fundamentally challenge the narrative that cutting work visas automatically saves money”.
• Policy Implications: The report highlights the fiscal benefits of attracting global talent and warns that strict visa caps could cost the Exchequer billions. 

Lower-paid skilled workers, including those in care roles, were found to contribute roughly the same to public finances as UK workers of a similar age, without placing any additional burden on public services.

The report noted: “Among the lower-earning skilled worker groups, temporary migration will be more beneficial than permanent migration from a fiscal perspective. This is not true higher up the earnings distribution, where having migrants stay in the long term adds to the fiscal benefit they provide.”

MAC also highlighted that a migrant’s fiscal impact depends on factors such as their age on arrival, length of stay, employment rate and salary. Skilled workers arriving in 2022–23 would, on average, contribute £931,000 to the public finances if they remained in the UK for life, compared with just £174,000 if they left after a few years. This lifetime contribution is significantly higher than that of a UK-born worker of the same age.

MAC said this was the first comprehensive assessment it had carried out on the fiscal contribution of migrants entering through a specific visa route. Future reports will examine other routes, including the global business mobility visa and humanitarian and asylum pathways.

The findings appear to conflict with current government proposals to double the qualifying period for indefinite leave to remain from five to 10 years, alongside wider efforts to tighten immigration rules.

Meanwhile, net migration to the UK fell sharply in the year to June 2025, dropping by almost 80% from its 2023 peak.

The deadline to respond to the government’s settlement consultation is 12 February, with significant implications for the future of the UK’s immigration system.

The deadline to respond to the government’s settlement consultation is 12 February. The stakes have never been higher. CLICK HERE TO REPLY TO CONSULTATION 

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