Consulting | 18 Sep 2018
The Fiscal Impact of Immigration on the UK

Economic Consulting Team
Oxford Economics

European migrants living in the UK contribute £2,300 more to public purse each year than the average adult, suggesting a net contribution of £78,000 to the exchequer over their lifespan in the UK.
In preparation for Brexit, the government asked its Migration Advisory Committee (MAC) to report on the economic and social impacts of EU migrants in the UK. The MAC commissioned Oxford Economics to analyse the fiscal implications of immigration using the most up-to-date data and sophisticated modelling techniques.
The resulting study, The Fiscal Impact of Immigration on the UK, represents the most comprehensive assessment to date of the net contribution that all migrants make to the UK’s public finances.
The study finds that
- The average UK-based migrant from Europe contributed approximately £2,300 more to UK public finances in 2016/17 than the average UK adult. In comparison, each UK born adult contributed £70 less than the average, and each non-European migrant contributed over £800 less than the average.
- The average European migrant arriving in the UK in 2016 will contribute £78,000 more than they take out in public services and benefits over their time spent in the UK (assuming a balanced national budget), and the average non-European migrant will make a positive net contribution of £28,000 while living here. By comparison, the average UK citizen’s net lifetime contribution in this scenario is zero.
- Taken together, this means that the migrants who arrived in 2016 will make a total net positive contribution of £26.9 billion to the UK’s public finances over the entirety of their stay. The value of this to the UK’s public finances is equivalent to putting approximately 5p on income tax rates (across all marginal rate bands) in that year.
About the team
Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques.
Related Services

Post
True Cost of Compliance – 2023 Report
This 2023 report updates our 2020 research on the detection and prevention of financial crime, and it's cost to the UK financial services sector. We surveyed 300 senior compliance executives about their costs and compliance activities, and used these results to estimate the costs across the UK Financial Services sector.
Find Out More
Post
Powering SMEs and the UK economy: Funding Circle’s 2022 impact
Small businesses in the UK continued to make a sizeable contribution to the UK economy in 2022, despite facing new challenges Post Covid. Analysis by Oxford Economics finds that lending to SMEs through Funding Circle generated a £6.9 billion contribution to UK GDP, supported nearly 106,000 jobs, and provided £1.4 billion in tax payments to the UK exchequer.
Find Out More
Post
Global Construction Futures
A global forecast for the construction industry to 2037.
Find Out More