Low paid to lose out from Brexit despite migration cut - study

Posted On: 
16th August 2016

Low paid workers will not see a pay rise even if migration to the UK falls after Brexit, new analysis has suggested.

The Resolution Foundation says the low paid will not benefit from Brexit
Credit: 
PA Images

It is widely claimed that a high level of net migration to the UK drives down wages for the lowest paid workers.

But the Resolution Foundation says even if net migration was cut to the tens of thousands - as promised by the government - wages would rise by between 0.2% and 0.6% at most.

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And the thinktank said the small increase will be ineffectual against a 2% downgrade in average wage growth due to the wider economic consequences of Brexit.

It also said reducing the migrant workforce could “threaten the viability of some businesses” which rely on cheap labour.

The thinktank called for a “short-term guarantee” for EU migrants' rights to continue working in Britain.

Labour MP and co-chair of the Vote Leave campaign Gisela Stuart is launching an inquiry today into the rights of EU nationals in the UK after Brexit.