Revoke the NHS health surcharge on non-EEA migrants
The Issue
From the 6th of April 2015, the British government has passed legislation to start levying a health surcharge of £200 per year (£150 for students) from non-EEA immigrants entering the UK. This decision will mainly affect two key categories of immigrants to the UK
1. Tier 4 Students
2. Tier 2 Skilled Workers (except Tier 2 Inter-company transfer category)
What this means:
Scenario 1:
A student applying for a Tier 4 visa to do a 3 year PhD programme in the UK and wishing to bring their spouse and child along to the UK will have to pay
£1350 [(£150)*(3 members)*(3 years)] upfront along with the already high visa processing fee costs whilst applying for their visa
Scenario 2:
A highly skilled executive applying for a Tier 2 (General) visa and wishing to bring their spouse and 2 children along to the UK will have to pay
£4000 [(£200)*(4 members)*(5 years)] upfront along with the already high visa processing fee costs whilst applying for their visa
Who this targets:
These high costs associated with entering the UK is specifically targeted at the reducing the number of immigrants from India, China and the USA.
In the student category, USA and China send the highest number of non-EEA students to the UK.
In the skilled worker category, India and USA send highest number of skilled workers to the UK.
The facts:
1. Students:
According to the 'International and postgrad fee survey, 2014', Undergraduate students pay anywhere between an average of £11,987 - £24,206 per year as fees compared to the the £8735 that UK / EEA students pay. Post-graduate non-EEA students pay an average of £17,413 compared to the £15,832 that UK/EEA students pay.
This difference in fees already pays the for the subsidies that universities don't receive from the HEFCE for educating non-EEA students. The excess fees also often includes a profit margin to the university.
Students who are non-EEA nationals have already been penalised by cancellation of the 2 year post-study work visa route which earlier allowed students to gain valuable experience after their education. According to the 'International students in higher education: The UK and its competition' report published by Universities UK in 2014, these changes have contributed to a decline in non-EEA students coming to study in the UK. With the introduction of the health surcharge, this trend is only set to increase.
Income and opportunities to the UK from non-EEA students:
In 2012–13, 12.1% of the UK higher education sector’s income was derived from non-EEA students’ tuition fees – a total of £3.5 billion. A further 1.3% of all income came from non-EEA sources in the form of research grants and contracts. Non-EEA student expenditure on and off campus further generated 137,000 full-time equivalent jobs in 2011-12. The benefits of of non-EEA students to the UK are clear and far outweigh the burden they cause to the society.
Current NHS consumption patterns:
Considering that most of the students coming to the UK are under the age of 30, it is fair to assume that the vast majority are fit and in a state of good health and won't need to access the NHS. The International students in higher education: The UK and its competition', report published by Universities UK, 2014, opines similarly.
Proposed solution:
1. Levy the health surcharge from universities and institutes of higher education rather than burdening students
Dependents:
1. Allow dependents to either pay the health surcharge or hold mandatory private insurance.
2. Allow payment of health surcharge on a yearly basis.
2. Tier 2 migrants:
Tier 2 category entrants to the UK are skilled workers and have a positive impact to the UK economy (Limits on Migration report, Migration Advisory Committee, 2012)
As per current legislation, a Tier 2 (General) migrant can only enter the UK if a resident labour market test has been conducted and no suitable candidate for a job has been identified in the UK / EEA. In essence, Tier 2 visa holders aid to fill a talent gap in the UK / EEA market by offering their specialised skills. The UK's Tier 2 visa route exists to help business maintain their competitive edge by hiring highly skilled individuals. The new health surcharge is a strong message to the international community that UK is closed for business and is not interested in bringing the best talent to grow its economy.
Tier 2 migrants pay the exact same taxes as a EU / EEA worker. According to Limits of Migration report, Tier 2 (General) visa applicants, on average were projected to earn higher average salaries than UK citizens, increasing their levels of tax contribution.
According to the current system of taxation an Tier 2 employee already contributes anywhere between 3-6% of their gross salary to fund the NHS - similar to all UK / EEA employees. A further charge of £200 per head is an unfair and exorbitant cost.
Current NHS consumption patterns:
"In relation to the consumption of public services we concluded that Tier 2 migrants tend to be young, healthy, highly educated, highly skilled and in employment, therefore are likely to consume below-average levels of health and social care services relative to the average existing UK resident"
"Expenditure on personal social services was on average lower for Tier 1 and Tier 2 migrants (largely due to the age profile of the group) and annual health expenditure was also considerably lower than for the average adult in the nonmigrant population"
- Limits on Migration report, Migration Advisory Committee, 2012
Proposed solutions:
1. Revoke the health surcharge on Tier 2 (General) migrants and allow them to access the NHS free of charge using their tax contributions.
2. Waive / refund the taxes paid towards the NHS for Tier 2 migrants and levy the 200 GBP (or higher) charge on a yearly basis for those migrants who are interested in using the NHS. Allow the option of private insurance for those who want to opt-out of using the NHS.
3. Revoke the health surcharge and waive the taxes paid towards the NHS and allow migrants to pay for treatment in the NHS / private hospitals using their own mandatory health insurance.
Dependents:
1. Allow dependents to either pay the health surcharge or hold mandatory private insurance.
2. Allow payment of health surcharge on a yearly basis.
The Issue
From the 6th of April 2015, the British government has passed legislation to start levying a health surcharge of £200 per year (£150 for students) from non-EEA immigrants entering the UK. This decision will mainly affect two key categories of immigrants to the UK
1. Tier 4 Students
2. Tier 2 Skilled Workers (except Tier 2 Inter-company transfer category)
What this means:
Scenario 1:
A student applying for a Tier 4 visa to do a 3 year PhD programme in the UK and wishing to bring their spouse and child along to the UK will have to pay
£1350 [(£150)*(3 members)*(3 years)] upfront along with the already high visa processing fee costs whilst applying for their visa
Scenario 2:
A highly skilled executive applying for a Tier 2 (General) visa and wishing to bring their spouse and 2 children along to the UK will have to pay
£4000 [(£200)*(4 members)*(5 years)] upfront along with the already high visa processing fee costs whilst applying for their visa
Who this targets:
These high costs associated with entering the UK is specifically targeted at the reducing the number of immigrants from India, China and the USA.
In the student category, USA and China send the highest number of non-EEA students to the UK.
In the skilled worker category, India and USA send highest number of skilled workers to the UK.
The facts:
1. Students:
According to the 'International and postgrad fee survey, 2014', Undergraduate students pay anywhere between an average of £11,987 - £24,206 per year as fees compared to the the £8735 that UK / EEA students pay. Post-graduate non-EEA students pay an average of £17,413 compared to the £15,832 that UK/EEA students pay.
This difference in fees already pays the for the subsidies that universities don't receive from the HEFCE for educating non-EEA students. The excess fees also often includes a profit margin to the university.
Students who are non-EEA nationals have already been penalised by cancellation of the 2 year post-study work visa route which earlier allowed students to gain valuable experience after their education. According to the 'International students in higher education: The UK and its competition' report published by Universities UK in 2014, these changes have contributed to a decline in non-EEA students coming to study in the UK. With the introduction of the health surcharge, this trend is only set to increase.
Income and opportunities to the UK from non-EEA students:
In 2012–13, 12.1% of the UK higher education sector’s income was derived from non-EEA students’ tuition fees – a total of £3.5 billion. A further 1.3% of all income came from non-EEA sources in the form of research grants and contracts. Non-EEA student expenditure on and off campus further generated 137,000 full-time equivalent jobs in 2011-12. The benefits of of non-EEA students to the UK are clear and far outweigh the burden they cause to the society.
Current NHS consumption patterns:
Considering that most of the students coming to the UK are under the age of 30, it is fair to assume that the vast majority are fit and in a state of good health and won't need to access the NHS. The International students in higher education: The UK and its competition', report published by Universities UK, 2014, opines similarly.
Proposed solution:
1. Levy the health surcharge from universities and institutes of higher education rather than burdening students
Dependents:
1. Allow dependents to either pay the health surcharge or hold mandatory private insurance.
2. Allow payment of health surcharge on a yearly basis.
2. Tier 2 migrants:
Tier 2 category entrants to the UK are skilled workers and have a positive impact to the UK economy (Limits on Migration report, Migration Advisory Committee, 2012)
As per current legislation, a Tier 2 (General) migrant can only enter the UK if a resident labour market test has been conducted and no suitable candidate for a job has been identified in the UK / EEA. In essence, Tier 2 visa holders aid to fill a talent gap in the UK / EEA market by offering their specialised skills. The UK's Tier 2 visa route exists to help business maintain their competitive edge by hiring highly skilled individuals. The new health surcharge is a strong message to the international community that UK is closed for business and is not interested in bringing the best talent to grow its economy.
Tier 2 migrants pay the exact same taxes as a EU / EEA worker. According to Limits of Migration report, Tier 2 (General) visa applicants, on average were projected to earn higher average salaries than UK citizens, increasing their levels of tax contribution.
According to the current system of taxation an Tier 2 employee already contributes anywhere between 3-6% of their gross salary to fund the NHS - similar to all UK / EEA employees. A further charge of £200 per head is an unfair and exorbitant cost.
Current NHS consumption patterns:
"In relation to the consumption of public services we concluded that Tier 2 migrants tend to be young, healthy, highly educated, highly skilled and in employment, therefore are likely to consume below-average levels of health and social care services relative to the average existing UK resident"
"Expenditure on personal social services was on average lower for Tier 1 and Tier 2 migrants (largely due to the age profile of the group) and annual health expenditure was also considerably lower than for the average adult in the nonmigrant population"
- Limits on Migration report, Migration Advisory Committee, 2012
Proposed solutions:
1. Revoke the health surcharge on Tier 2 (General) migrants and allow them to access the NHS free of charge using their tax contributions.
2. Waive / refund the taxes paid towards the NHS for Tier 2 migrants and levy the 200 GBP (or higher) charge on a yearly basis for those migrants who are interested in using the NHS. Allow the option of private insurance for those who want to opt-out of using the NHS.
3. Revoke the health surcharge and waive the taxes paid towards the NHS and allow migrants to pay for treatment in the NHS / private hospitals using their own mandatory health insurance.
Dependents:
1. Allow dependents to either pay the health surcharge or hold mandatory private insurance.
2. Allow payment of health surcharge on a yearly basis.
The Decision Makers
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Petition created on 21 March 2015