About 504,000 more people are estimated to have moved to the UK than left in the 12 months to June. Getty Images
About 504,000 more people are estimated to have moved to the UK than left in the 12 months to June. Getty Images
About 504,000 more people are estimated to have moved to the UK than left in the 12 months to June. Getty Images
About 504,000 more people are estimated to have moved to the UK than left in the 12 months to June. Getty Images

Net migration to UK tops 500,000 for first time


Paul Carey
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Net migration to the UK has risen to a record half a million, driven by “unprecedented world events” including the war in Ukraine and the end of coronavirus lockdown restrictions, according to the Office for National Statistics.

About 504,000 more people are estimated to have moved to the UK than left in the 12 months to June, up sharply from 173,000 in the previous year.

Other factors contributing to the jump included the resettlement of Afghan refugees and the new visa route for British nationals from Hong Kong.

The ONS described the year as “unique”, pointing to simultaneous factors coinciding to affect long-term immigration, which reached 1.1 million, including the continued recovery in travel following the end of the Covid-19 pandemic, a new immigration system following Brexit, and the ongoing support for Ukrainians and others requiring protection.

The departure of EU citizens post-Brexit continued. The number of EU nationals in the UK was down 51,000, compared with a decrease of 63,000 the year before.

Of the total of 1.1 million likely to have migrated to the UK in the year to June, the majority — 704,000 — were from outside the EU. By contrast, 560,000 people are estimated to have migrated from the UK in the same period, almost half of them — 275,000 — going back to the EU. The imbalance means that, while far more non-EU citizens are likely to have arrived in the UK than left during these 12 months, the reverse is true for EU citizens, with more leaving than arriving.

Jay Lindop, ONS's Director of the Centre for International Migration, said: “A series of world events have impacted international migration patterns in the 12 months to June 2022. Taken together these were unprecedented. These include the end of lockdown restrictions in the UK, the first full period following transition from the EU, the war in Ukraine, the resettlement of Afghans and the new visa route for Hong Kong British nationals (Overseas), which have all contributed to the record levels of long-term immigration we have seen.”

“Migration from non-EU countries, specifically students, is driving this rise. With the lifting of travel restrictions in 2021, more students arrived in the UK after studying remotely during the coronavirus pandemic. However, there has also been a large increase in the number of people migrating for a range of other reasons. This includes people arriving for humanitarian protections, such as those coming from Ukraine, as well as for family reasons.”

“These many factors independent of each other contributing to migration at this time mean it is too early to say whether this picture will be sustained.”

After the figures were released, Downing Street insisted Prime Minister Rishi Sunak wants to bring overall immigration levels down but has not put a specific timeframe on that. The Prime Minister’s official spokesman said “unprecedented and unique circumstances” had caused the rise.

This week, both Mr Sunak and opposition leader Keir Starmer have suggested employers should turn to British workers first in their efforts to fill lower-skilled jobs, rather than rely on foreign workers. Mr Sunak dismissed the idea that Britain would be considering a move to a Swiss-style partnership with the EU.

As the Confederation of British Industry met for its annual conference this week, director-general Tony Danker said a more liberalised approach to immigration was needed to help boost economic growth when public spending is tight.

He said: “The reason why it’s so important is we have literally over a million vacancies in this country, we have 600,000 people who are now long-term unwell, who aren’t coming back to the labour market any time soon.

“That’s why we have to get this shortage occupation list – the list of people that we’re really missing that we aren’t going to get in Britain any time soon – and we have to get them to plug the gap while we re-calibrate the labour market in the medium term.”

Sunder Katwala, director of think tank British Future, said: “Neither Rishi Sunak nor Keir Starmer plans to make significant cuts to immigration because of the social and economic benefits it brings to Britain.

“So political leaders should now be setting out a vision for how we make this work well for all of us in the UK, focusing on integration, citizenship and training up the UK workforce to fill skills gaps.

Emigration from the UK was more steady, the ONS said. The provisional estimate of the number of people emigrating out of the UK long-term was approximately 560,000. Non-EU nationals accounted for 195,000 of this long-term total, EU citizens accounted for 275,000 and British citizens 90,000.

The ONS said it was too early to say whether these trends will continue, as future levels of emigration may increase over the coming years following the relatively high inflow of non-EU students. Nearly two thirds of non-EU students had left at the end of their study visa in the academic year ending in 2019.

A total of 1.1 million people are likely to have migrated to the UK in the year to June, the majority — 704,000 — from outside the EU. By contrast, 560,000 people are estimated to have migrated from the UK in the same period, almost half of them — 275,000 — going back to the EU. The imbalance means that, while far more non-EU citizens are likely to have arrived in the UK than left during these 12 months, the reverse is true for EU citizens, with more leaving than arriving.

Migration remains a hot topic in the UK, driven by the rise in illegal arrivals.

The ONS figures showed that the number of asylum applications pending a decision has continued to increase, standing at 117,400, more than twice as many as two years ago. There are now about 80,000 cases awaiting initial decision for more than six months.

Marley Morris, associate director for migration, trade and communities at the IPPR think tank, said: “The new migration statistics today tell two stories about immigration to the UK. On the one hand, higher net migration is driven in large part by rising student numbers and the new Ukraine humanitarian routes — reflecting the generosity of the British public in opening their homes in exceptional numbers to welcome Ukrainians escaping the Russian invasion.

“On the other hand, the figures also show an asylum system in serious peril, with the backlog of claims growing further. Urgent action is needed to tackle the backlog and to work with local authorities to find suitable accommodation for asylum applicants.

“Today also marks one year on from the tragic deaths of 32 people in the Channel. With numbers of small boats crossing the Channel continuing to rise, the government must work closely with France and the EU to stop the dangerous crossings and provide safe and legal alternatives.”

On Wednesday, the Home Secretary admitted the government has failed to control the UK’s borders as she blamed migrants crossing the Channel for overcrowding at the Manston processing centre.

Suella Braverman also struggled to explain the legal routes which asylum seekers fleeing war and persecution could use to come to the UK, prompting criticism that she was “out of her depth” and did not understand her own policies.

She was repeatedly questioned over where the fault lies for the problems at the Kent migrant holding facility when she faced the Commons Home Affairs Committee for the first time since her appointment.

The former military airfield near Ramsgate stood empty on Tuesday after everyone held there was moved into hotels, but it has been dogged by controversy in recent weeks, with ministers coming under fire over the conditions.

At its peak earlier this month, 4,000 were held there — more than double its 1,600 capacity — a move branded a “breach of humane conditions”.

The Home Office has now been threatened with five legal actions over the site.

Speaking to MPs, Ms Braverman said: “I’m not going to point the finger of blame at any one person. It’s not as simple as that.”

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SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.

Know your cyber adversaries

Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.

Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.

Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.

Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.

Phishing: Aims to secure personal information, such as passwords and credit card numbers.

Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.

Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.

Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.

Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.

Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.

Zero-day exploit: Exploits a vulnerability in software before a fix is found.

Haemoglobin disorders explained

Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Updated: November 24, 2022, 11:55 AM