Reform UK Proposes Foreign Worker Levy to Fund National Insurance Cut for British Staff

Reform UK announced it would introduce a graduated levy on companies hiring foreign workers if it wins the next general election. 8% for British nationals only. 2 billion.

2 billion. The proposed levy would be £3,750 per foreign worker employed full-time at the minimum wage of £24,784 per year for those over 21.

Reform UK pledged to abolish the right of migrants to permanently settle in the UK after five years. The party also pledged to ban foreign nationals from living in social housing. Jenrick said the policy would end the cheap migrant labour racket once and for all.

He acknowledged the tax base for the levy would rapidly shrink under the settlement changes but argued savings in benefits paid to unemployed British nationals would compensate. The policy would primarily affect sectors including retail, hospitality, manufacturing, and private care companies. Public-sector employers such as the NHS were shielded from last year's National Insurance rise.

The Labour government raised the employer National Insurance rate last year. Reform UK pledged a VAT cut for smaller businesses last week. The announcement comes ahead of a by-election in Makerfield scheduled for Thursday.

Reform UK is contesting the Makerfield by-election against Restore Britain, founded by former Reform MP Rupert Lowe. Speaking at a news conference in London, Jenrick declined to specify exact proposed rates, saying it would be irresponsible to do so with up to three years before the next election.

The party said it plans a graduated levy targeted at lower-paid jobs, with full details to be released following a consultation with businesses.