Estimated time of reading: ~ 5 minutes

Uneven conditions on the labour market and fear of a growing immigrant population from Eastern Europe were one of the main reasons that prompted the Brexit referendum in 2016 and led to the victory of those who decided to leave the European Union. Since then, the reset of EU-UK relations on social policy has been a complex and multifaceted process, marked by both progress and challenges. Following the UK’s formal withdrawal from the European Union in 2020, London and Brussels embarked on a series of negotiations in order to establish a new framework for their social policy cooperation. For many reasons, one of the key areas of focus has been the protection of workers’ rights. Many European citizens decided to move from the UK to their countries of origin or even a third country, while others believed that their future would have been better in the UK, despite possible setbacks. In this context, the British authorities have retained many of the EU’s labour standards, but there have also been some notable divergences, such as the introduction of a new immigration system that has led to raising concerns about the potential exploitation of migrant workers in the UK. It is important to highlight that the EU has expressed its commitment to ensuring that labour standards in Britain remain aligned with its own. Brussels has thus called for regular dialogue with the other side, and it is willing to monitor and address any potential gaps. At the same time, another relevant aspect of the UK-EU reset has been the coordination of social policies related to health and welfare.

On the general side, Brexit has created severe labour shortages in the United Kingdom, with issues exacerbated by the COVID-19 pandemic and with a deeper impact than in other European countries. Under the UK’s new immigration rules, EU nationals no longer have preferential treatment, and many low-skilled jobs have become off-limits for them. Instead, London launched a new points-based system, designed to attract skilled workers. In a first phase, the UK has granted “settled status” to more than six million people under its EU Settlement Scheme for EU, EEA (European Economic Area), and Swiss nationals, along with their family members living in the country. Although net migration to the UK has risen sharply, among EU nationals it is estimated to have fallen in the past few years. As a 2022 study by Oxford University’s Migration Observatory shows, the UK immigration policy after Brexit was one of multiple factors contributing to shortfalls in the workforce. Moreover, the Migration Advisory Committee’s annual report, issued in December 2022, said the end of EU free movement had caused “a labour supply shock to the UK economy,” especially in those sectors most reliant on EU-born workers, such as hospitality, logistics, administration, manufacturing, and agriculture: the low-skilled jobs aforementioned. It comes as no surprise that many business leaders in the UK have called on the government and the Parliament to relax immigration rules. Despite that, the migration committee stated that it would be better to “resist calls to open new visa routes without a strong economic rationale”, due to the risk of a new surge in migrant workers.

Written by: Francesco Marino