EU migrants add £20bn to our GDP: but is the UK more generous in benefits than its neighbours?

A new UCL study shows that European migrants are not a drain on our resources, but what about the perception that Britain is an "El Dorado" for immigrants?

By Anoosh Chakelian

(Photo By Migrants want to come to Britain to work, not for "benefit tourism". Photo: Getty)

A highly topical top story this week is a new UCL study showing that, far from being a drain on Britain’s finances, EU migrants pay out far more in taxes than they receive in state benefits. The key line from the report is that the UK gained a net contribution of £20bn from European migrants in 2000-11. But the Mail and the Telegraph have taken the line from the study that non-EU migrants have cost the UK £120bn in 1995-2011. However, this should be put into context with the fact that UK nationals cost the country £591bn in the same time period.

This research highlights an important, and, in these Ukip-tinged times, often unheard, argument that migrants from the European Union benefit UK GDP rather than being a drain on our resources. However, the perception persists – particularly from those who support Ukip’s campaign to “take control of our borders” by taking Britain out of the EU – that migrants are “benefit tourists” and, in the words of Calais’ mayor, see Britain as “El Dorado” due to its welfare hand-outs.

Less than 5 per cent of EU migrants are claiming Jobseekers’ Allowance, while less than 10 per cent are claiming other DWP working-age benefits. On top of this, the think tank Class found that of those who claim Jobseekers’ Allowance, 91.5 per cent are UK nationals. Additionally, among unemployed migrants, only 1 per cent claim unemployment benefits, compared to the 4 per cent of unemployed UK nationals who are claimants.