Daniel Pryor: Letting asylum seekers work is common-sense Conservatism

30 Jul

Daniel Pryor is Head of Programmes at the Adam Smith Institute.

Just over a year ago, former Home Secretary Sajid Javid told Parliament that “it is time for reform” of the outdated ban on asylum seekers working in the UK.

The world has hugely changed since then. But there remains an urgent need to allow asylum seekers to become less dependent on taxpayers, contribute to our economy, and support integration.

That’s why we at the Adam Smith Institute are proud members of the Lift the Ban Coalition: a group of over 200 businesses, trade unions, charities, think tanks and faith groups that campaign for the right to seek work for people seeking asylum.

In a new report, the coalition is calling for the Government to lower the waiting period before asylum seekers can work from one year to six months, as well as letting them apply for jobs outside the highly restrictive Shortage Occupation List (which includes classical ballet dancers and hydrogeologists).

Giving those seeking asylum the right to seek work – unconstrained by bureaucrats who think they understand the labour market better than British businesses – is common sense. Relaxing our current year-long work ban would promote integration with local communities, protect vulnerable people from forced labour, save the taxpayer money, and give asylum seekers the dignity of providing for themselves and their families.

The Home Office announced a review of the current policy 18 months ago, but have been silent since. Unfortunately, Home Office delays are a big part of the problem with our asylum system. By March 2020, the majority of people (31,516) waiting for a decision on an asylum claim were doing so for more than six months: the highest number since public records began. Those awaiting the results are left struggling to support themselves and their families on just £5.66 a day.

Conservatives pride themselves on championing the dignity of work: the sense of meaning, purpose, and belonging that comes from gainful employment. This is something that many millions of us have come to appreciate the value of even more as vast swathes of the United Kingdom remain furloughed.

Frankly, it is cruel and counterproductive to deny that opportunity to asylum seekers who want to use their skills to help rebuild our economy. Sitting at home all day with no job and a meagre government-granted allowance – all in the midst of the Covid-19 pandemic – is a challenge for anyone’s mental well-being.

It also makes it more difficult to successfully integrate into their local communities. Work would give asylum seekers the opportunity to meet and socialise with people, as well as a strong incentive to improve English language skills.

The economic case for reform is equally compelling. Our latest estimates show that lifting the work ban could save taxpayers £98 million through more income tax receipts and less asylum support payments. Previous research on the effects of work bans also points to a potential reduction in crime from lifting the ban: hardly a surprise for conservatives who recognise the link between labour market opportunities and crime.

Other developed countries seem to recognise the benefits, and the UK remains an international outlier on its waiting periods: Australia, Canada and many European countries have far less restrictive rules.

Critics raise concerns that allowing asylum seekers to work would encourage more to come to Britain. But worries about creating such a ‘pull factor’ are not based on real-world experience. A systematic review of research into the relationship between labour market access for asylum seekers and overall numbers failed to find a single study showing a long-term relationship. This should hardly be surprising – most asylum seekers aren’t even aware that they are banned from working upon arrival in the UK, never mind the idea that they base their decision on such information.

Most Brits are rightly unconvinced by the ‘pull factor’ argument. Reform has proven to be consistently popular with the electorate and UK businesses. Survation polling has found that a remarkable 71 per cent of the public believe lifting the ban would help integration, while more than two-thirds of business leaders are supportive of the change.

Lifting the ban is also in keeping with this Government’s wider approach to immigration policy. The Prime Minister has already scrapped the notorious ‘tens of thousands’ target, revived the post-study work visa, and mandated lower, looser salary thresholds in our post-Brexit immigration system. Following these sensible changes with asylum working reform would be a welcome instance of consistency from the Government.

If we’re serious about rebooting Britain post-Covid, we should let asylum seekers work. People from many different political backgrounds support reform, but the key arguments in favour are most familiar to Conservatives. If this Government continually denies access to paid work in favour of state handouts, maintains barriers to integration, and hobbles our vulnerable economy with unnecessary red tape – what is the point of the Conservative Party?

Daniel Pryor: Letting asylum seekers work is common-sense Conservatism

30 Jul

Daniel Pryor is Head of Programmes at the Adam Smith Institute.

Just over a year ago, former Home Secretary Sajid Javid told Parliament that “it is time for reform” of the outdated ban on asylum seekers working in the UK.

The world has hugely changed since then. But there remains an urgent need to allow asylum seekers to become less dependent on taxpayers, contribute to our economy, and support integration.

That’s why we at the Adam Smith Institute are proud members of the Lift the Ban Coalition: a group of over 200 businesses, trade unions, charities, think tanks and faith groups that campaign for the right to seek work for people seeking asylum.

In a new report, the coalition is calling for the Government to lower the waiting period before asylum seekers can work from one year to six months, as well as letting them apply for jobs outside the highly restrictive Shortage Occupation List (which includes classical ballet dancers and hydrogeologists).

Giving those seeking asylum the right to seek work – unconstrained by bureaucrats who think they understand the labour market better than British businesses – is common sense. Relaxing our current year-long work ban would promote integration with local communities, protect vulnerable people from forced labour, save the taxpayer money, and give asylum seekers the dignity of providing for themselves and their families.

The Home Office announced a review of the current policy 18 months ago, but have been silent since. Unfortunately, Home Office delays are a big part of the problem with our asylum system. By March 2020, the majority of people (31,516) waiting for a decision on an asylum claim were doing so for more than six months: the highest number since public records began. Those awaiting the results are left struggling to support themselves and their families on just £5.66 a day.

Conservatives pride themselves on championing the dignity of work: the sense of meaning, purpose, and belonging that comes from gainful employment. This is something that many millions of us have come to appreciate the value of even more as vast swathes of the United Kingdom remain furloughed.

Frankly, it is cruel and counterproductive to deny that opportunity to asylum seekers who want to use their skills to help rebuild our economy. Sitting at home all day with no job and a meagre government-granted allowance – all in the midst of the Covid-19 pandemic – is a challenge for anyone’s mental well-being.

It also makes it more difficult to successfully integrate into their local communities. Work would give asylum seekers the opportunity to meet and socialise with people, as well as a strong incentive to improve English language skills.

The economic case for reform is equally compelling. Our latest estimates show that lifting the work ban could save taxpayers £98 million through more income tax receipts and less asylum support payments. Previous research on the effects of work bans also points to a potential reduction in crime from lifting the ban: hardly a surprise for conservatives who recognise the link between labour market opportunities and crime.

Other developed countries seem to recognise the benefits, and the UK remains an international outlier on its waiting periods: Australia, Canada and many European countries have far less restrictive rules.

Critics raise concerns that allowing asylum seekers to work would encourage more to come to Britain. But worries about creating such a ‘pull factor’ are not based on real-world experience. A systematic review of research into the relationship between labour market access for asylum seekers and overall numbers failed to find a single study showing a long-term relationship. This should hardly be surprising – most asylum seekers aren’t even aware that they are banned from working upon arrival in the UK, never mind the idea that they base their decision on such information.

Most Brits are rightly unconvinced by the ‘pull factor’ argument. Reform has proven to be consistently popular with the electorate and UK businesses. Survation polling has found that a remarkable 71 per cent of the public believe lifting the ban would help integration, while more than two-thirds of business leaders are supportive of the change.

Lifting the ban is also in keeping with this Government’s wider approach to immigration policy. The Prime Minister has already scrapped the notorious ‘tens of thousands’ target, revived the post-study work visa, and mandated lower, looser salary thresholds in our post-Brexit immigration system. Following these sensible changes with asylum working reform would be a welcome instance of consistency from the Government.

If we’re serious about rebooting Britain post-Covid, we should let asylum seekers work. People from many different political backgrounds support reform, but the key arguments in favour are most familiar to Conservatives. If this Government continually denies access to paid work in favour of state handouts, maintains barriers to integration, and hobbles our vulnerable economy with unnecessary red tape – what is the point of the Conservative Party?

Stamp duty cut welcome, but concerns about “tomorrow’s taxpayers”. Centre-right think tanks react to Sunak statement.

8 Jul

Adam Smith Institute –  Matthew Lesh, Head of Research, said:

“Stamp duty is Britain’s worst tax. This temporary cut is the right move at the right time to get Britain moving. Temporary measures to get young people work experience, to build inwork skills, are also welcome in the face of an increased minimum wage.

“Furlough continues for a few more months but reality will hit eventually. In the forthcoming Budget, the Chancellor should cut the cost of hiring by permanently reducing the burden of employers’ national insurance, remove red tape like occupational licenses, and abolish the factory tax to get businesses investing in their futures.

“The stimulus proposals are very questionable. The VAT cut and subsidising restaurants will be expensive and provide limited benefit. People aren’t spending on food, accommodation and attractions because of safety concerns, not lack of demand or cash.”

Centre for Policy Studies – Robert Colvile, Director, said:

“We welcome the focus on jobs and training, which is what the CPS recently called for in our report ‘After the Virus‘, but the challenge will be how to support the economy as we transition to new ways of working in a post-virus economy.

“You can see the Government is trying to strike that balance with this package, but these measures are temporary, and will have to be paid for down the line. This is why we would like to see the sort of long-term structural change that will maximise growth, support businesses and encourage them to create new jobs without placing the burden on the taxpayer.”

TaxPayers’ Alliance – John O’Connell, Chief Executive, said:

“The chancellor announced a ‘plan for jobs’ but it’s tomorrow’s taxpayers who will have to work hard to pay for it all.

“While the jobs retention bonus will help ensure that the furlough scheme isn’t just an expensive pause on mass lay-offs, taxpayers will be concerned about how and when they will pay the bills for ever-more spending promises.

“It is cheering that the chancellor appreciates the economic benefits of cutting taxes and in particular lifting the stamp duty threshold will provide a boon to the housing market.

“That said, while easing the burden on taxpayers is always welcome, we must look at longer-term tax simplification and put a stop to temporary fiddles.”

Institute of Economic Affairs – Professor Syed Kamall, Academic and Research Director, said:

“We are in an unprecedented situation and there remains the issue that many individuals and families are fearful of leaving their homes to resume every day activities. The Chancellor can only do so much in terms of measures introduced to get the economy moving.

“The cut to Stamp Duty is welcome but why isn’t it permanent? It is a destructive, regressive tax that clogs up the housing market and limits labour mobility. Making it permanent would get the property market moving and encourage those who want to downsize as well as those looking for family houses, freeing up homes for first-time buyers.

“It is disappointing more was not announced to encourage private investment in infrastructure – such as reopening old railways or rezoning to allow homes to be built in places being vacated by shops, such as high streets.”

Resolution Foundation – Torsten Bell, Chief Executive, said:

“Today’s Budget in-all-but-name was a £30 billion top up to a pandemic response that is approaching 10 per cent of GDP and will push borrowing to around £350 billion this year.

“The focus on jobs and some, but not all, hard-hit sectors was very welcome. Kickstart jobs for young people represents a tried and tested policy, but the new Job Retention Bonus is poorly targeted at those jobs that are most at risk of being lost.

“The Chancellor is right to focus VAT cuts on food, accommodation and attractions. However, the lack of support for face-to-face retail means significant challenges for Britain’s High Streets. The innovative meal deal voucher scheme is far too small scale to make a significant difference.

 “The Chancellor, having previously announced huge measures to protect household incomes, has now set out much more normal demand support for the next phase of this crisis. That might be sufficient if the UK sees the V-shaped recovery we all hope fora. But given that this economic crisis is likely to be with us until a vaccine is found, he should expect to be returning with further measures to support the economy in the Autumn.”

Matt Kilcoyne: An unholy alliance is frustrating our freedom to shop on Sunday. Johnson should take it on.

24 Jun

Matt Kilcoyne is Head Of Communications at the Adam Smith Institute.

An unholy alliance of small shops, supermarkets with convenience stores, unions and the church has formed again to oppose ending Sunday trading restrictions. The whole argument against letting the big shops open after 6.00pm appears quite confected. After all, no other industry has this weird restriction in place. Our NHS doctors and nurses can work Sunday night.

Few small business owners will refuse to help a customer if they come a-knocking after hours with a genuine need. You can even order online and have it delivered on a Sunday.

Meanwhile, if you’re a reporter with a sharp nose for a story it doesn’t matter if it breaks after your shift. Notably, an article announcing opposition to ending Sunday trading restrictions was published in Monday’s Daily Telegraph, indicating at least some of the editing was undertaken after 5.00pm the previous day.

Indeed, I’ve done something rather naughty while writing this. For you see, most of this piece was itself written on the Sabbath, by my own free choice. And unlike shift workers, I don’t even get paid to do so.

Yet for some reason, we arbitrarily do not allow shops larger than 3,000 square feet to open for more than six hours between 10.00am and 6.00pm on a Sunday. Deuteronomy is famous for its niche laws governing every aspect of the observant’s life, but I must have missed the verse that says shops with 3,001 square feet are too big, and that opening for more than six hours is forbidden.

The Old Testament calls for a day of rest. We have those written into law, just at times of our own choosing rather than convention. Universality is lovely in morals, but can be poor in practice.

Our restrictions hurt consumers, workers and businesses. They hold workers back from flexible and well-compensated hours; they reduce consumer choice; and they put pressure on time-poor and cash-poor parents in tight spots.

These current laws unfairly punish larger shops, when in fact these larger shops are precisely the ones that allow for much greater social distancing in the context of Covid-19. It is, to be frank, bizarre to encourage people to go to smaller shops, with the higher risk of interaction and contagion.

The same arguments Conservatives made against Sadiq Khan shutting down the tube at the beginning of this pandemic apply to those that want to control hours of opening for Sunday shoppers.

A great deal of our economy has gone off the cliff  but, like Wiley Coyote, we seem to have not yet realised. Instead of debates over the shopping habits of the past, we need as many ways as possible to increase transactions, consumption, and employment as we can muster.

We also need to find ways to keep us safe against the undimmed viral threat by allowing greater social distancing in stores, which is certainly helped by spreading out shoppers and staff over the week.

We consumer capitalists at the Adam Smith Institute have noted before that shoppers actually like the extra bit of choice: when Sunday trading laws were suspended during the Olympics, sales increased 2.8 per cent inside of London and 6.2 per cent outside of London.

The current restrictions are not even that traditionally British. Scotland has no restrictions on Sunday trading — workers have a right not to work on a Sunday should they so wish. Northern Ireland has even stricter laws than England and Wales, meaning you can only go to the supermarket between 1pm and 6pm.

Keep Sunday Special is made up of: the Association of Convenience Stores and the National Federation of Retail Newsagents; the Federation of Wholesale Distributors; the Union of Shop, Distributive and Allied Workers, the Church of England, and post offices.

Beside the Church of England, which understandably wants us all in the pews rather than pounding the high street, you may have spotted the giant vested interests in this campaign. All the shops are themselves quite happily open on Sunday (and that includes some supermarkets with smaller inner city stores too), those that supply these small stores, a union that wants to limit labour competition, and the post offices that are reliant on corner shops.

This has nothing to do with keeping Sunday special. It has everything to do with shutting out the competition.

The idea that we’re a downtrodden people beholden to capitalists that want us to work every single second of every single day like Scrooge himself is both wrong and wrongheaded. The opposition and the quick backtrack from Number 10 also shows something much more worrying: a weakness for sticking to a choice when it’s made at the heart of a government.

Instead of the surety that should come with an 80-seat majority and the public’s support, we’ve had another U-turn in record time. In the face of obvious vested interests and a small but vociferous campaign that says it can muster 50 MPs to its cause, but only managed seven names on an open letter. And there’s something really off and quite worrying about the Chief Whip’s personal opinion ending up on the front page of theTelegraph.

For a Government that is supposedly obsessed with public opinion, this decision shows a deaf ear. A recent YouGov poll found 48 per cent in favour of abolishing Sunday trading rules with just 31 per cent against. Conservative voters were most in favour – with 53 per cent of self-identified Tories saying they would support relaxed trading hours rules.

Nobody is going to suddenly turn up at your house at 6.00pm on the Lord’s day, and drag you out of the house to a supermarket and stand over you while you weep in the veg aisle. But your opposition to Sunday trading should not prevent me from having that choice.

Boris Johnson should take back control of the agenda from a vocal minority on Sunday trading. The existing rules are inconsistent and hypocritical. They do not reflect a 24/7 economy, where people can purchase online and receive deliveries any time. They are backed by vested interests masquerading under a campaign of faux outrage. In their place, with a decisive move to liberalise, could come more opportunities to work, hours that meet our needs and reduced risk — and a reflection of the values of the voters that put the Conservatives back into power in December.