Controversial Rise in UK’s Immigration Health Surcharge Sparks Outcry

The UK government, led by Prime Minister Rishi Sunak, recently greenlit a proposal for public-sector wage increases of 5 to 7 per cent for professionals like teachers, doctors, and police.

The government’s plan to finance these wage increases has sparked controversy. Rather than opting for tax hikes or additional borrowing, the government aims to raise approximately £1 billion by increasing the Immigration Health Surcharge (IHS) and visa fees.

Doctors in the United, the country’s oldest medical union, vehemently oppose this move. The union, representing junior doctors, general practitioners, and hospital consultants, claimed the new plan would result in migrants paying double the current cost to access the National Health Service (NHS).

A ‘Double Tax’ on Migrants and Consequences for the UK

In the UK, most workers contribute to the NHS, state pension schemes, and unemployment benefits through deductions from their salaries, known as National Insurance contributions. “Doubling the NHS surcharge to over £1,200 ($1,570) per year is an unjust additional penalty,” Doctors in the United declared, arguing that this decision effectively means migrants are “taxed twice” to use the same services. The union deems the move “immoral and divisive.”

Initially introduced to deter “medical tourism,” the IHS applies to most migrants under the stricter post-Brexit immigration regulations. The government’s proposal would see the IHS for adults rise to £1,035, with a reduced rate of £776. Visa fees for work and visits are projected to increase by 15%, with student and leave-to-remain visas potentially seeing a rise of at least 20%.

This policy change comes as the UK grapples with a record net migration of 606,000 in 2022, which places additional pressure on the government to decrease reliance on foreign labour. Critics, like the migrant and refugee charity Praxis, accuse the government of using foreign-born individuals as “cash cows” when many are already struggling with high visa renewal costs.