Millions of EU citizens who were granted settled status after Brexit could be stripped of their right to work in the UK under Reform UK plans to impose a new tax on companies hiring foreign workers. Robert Jenrick, the party’s Treasury spokesman, said the policy would force firms to put “British workers first, migrant workers second” and end what he called “the cheap migrant labour racket once and for all”.
Speaking at a news conference in London, Jenrick announced that a Reform government would reduce employer National Insurance from 15% to 13.8% – reversing last year’s Labour rise – but only for staff who are British nationals. Foreign workers would remain subject to the higher rate, and companies would also face a graduated “migrant labour levy” that would fall as salaries rise. Jenrick suggested the levy could be set at £3,750 for a full-time foreign worker on the minimum wage, dropping to £1,500 for those earning £50,000 a year and to £500 for those earning £100,000. He declined to specify exact figures, saying it would be “irresponsible” with up to three years before the next election.
“Reform UK pledges to tax companies hiring foreign workers and strip EU settled status from 4.5 million people.”
The party estimates the measure would cost the Treasury £11.2bn, but Jenrick argued the shortfall would be offset by savings in benefits as unemployed Britons were hired. He acknowledged the tax base would “rapidly shrink” under Reform’s separate pledge to abolish the right of migrants to permanently settle after five years, forcing them either to apply for citizenship or reapply for temporary work visas with higher salary requirements.
Crucially, Jenrick admitted that EU citizens who were given settled status under the Brexit Withdrawal Agreement – an international treaty – would not count as “British workers”. That means the 4.5 million people who have lived in the UK for years, many for decades, could lose their jobs and be forced to leave. Monique Hawkins, acting chief executive of the3million, which represents EU citizens with settled status, said: “The proposals announced by Reform UK make a mockery of the promises that EU citizens were given when the UK left the European Union. … This is an international treaty … not something which can so cavalierly be discarded on the whim of racist politics.”
The policy is likely to hit sectors such as retail, hospitality, manufacturing and private care companies, which rely heavily on foreign labour. Jenrick suggested such firms should raise salaries to recruit British workers instead. The announcement comes as Reform seeks to redraw Brexit battle lines ahead of Thursday’s Makerfield by-election, with Sir Keir Starmer pushing to put the UK back into the heart of Europe.