New report suggests refugees could bring major economic benefits
By the Public and Commercial Services Union (PCS)
The London School of Economics (LSE) report, commissioned by PCS and Together With Refugees, has officially launched in Parliament.
Welcoming Growth – the case for a fair and humane asylum system is a new policy report, supported by PCS. The report reveals that every refugee accepted into the UK would contribute over £260,000 to the UK economy if the proposed changes within the report were adopted. This includes a net benefit to the public purse of £53,000 each.
The four key policy changes within the report include:
- Asylum claims to be processed within six months
- Legal assistance at all stages of the application process
- English language support from day of arrival
- Employment support from day of arrival.
Speaking ahead of the launch in parliament, PCS general secretary Fran Heathcote said: “Today we are witnessing the government neglect its own plans for growth by taking a harder line against some of the most vulnerable people who come to this country, fleeing war, persecution and violence. To threaten refugees with the removal of their only belongings to pay for their cases is frankly a line I would expect from Reform.
“Our report shows that through embracing a humane and fair approach to asylum, we could assimilate refugees into our communities whilst ensuring they can contribute and support themselves. This report provides positive solutions, not divisive decisions which continue to fan the flames of hate.”
Other key findings within the report include:
Overall economy – The four changes to the asylum system would mean a contribution to the UK economy from every refugee of £265,788 over 12.5 years from arrival.
Accommodation – The changes to the system would result in a net saving in accommodation costs of £42,000 per asylum seeker over a 12.5-year period from arrival. This equates to a 34% saving in the total cost of accommodation for asylum seekers over the period (from £144,000 to £79,000). This is because by expediting the application process to six months, people can be self-sufficient sooner – meaning housing costs would be paid by the individual, rather than the state, a year earlier.
Public Purse – The four interventions in the model would benefit the UK exchequer by £53,000 per refugee over 12.5 years from arrival. This includes a net contribution of £7,000 for every refugee to the public purse just by expediting the asylum application system to six months and providing legal assistance throughout the process. This financial benefit takes into account all the associated costs of supporting asylum seekers from arrival, as well as the expense of creating and implementing the four proposed changes to the asylum system.
Employment – Every £1 invested in English classes and employment support from day one results in £9 in increased salary–over the 12.5 years from arrival. This equates to a 76% increase in total employment income, reflecting the cumulative effects of faster processing, language training, and employment support. This, in turn, means significant benefit to the economy and public purse.
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