Reform UK overseas-worker levy draws warnings from health and education sectors

Reform UK’s proposed surcharge on employers of overseas workers could raise costs across Britain’s health, social care and education systems, according to sector specialists cited in a report published on July 27, 2026.

The plan would combine a higher rate of employer national insurance with a separate annual charge for workers who do not hold UK passports. It would include European Union nationals with settled status, while Irish citizens would be exempt. The size of the levy has not been specified, although Reform has said the charge would be higher for lower-paid employees.

Reform says the UK-wide policy is intended to encourage organisations to hire British workers. However, health and care groups argue that employers recruit internationally because domestic workers are not available in sufficient numbers. The King’s Fund noted that about one-fifth of NHS England staff are not UK nationals and warned that added employment costs would have to be absorbed by an already stretched service.

Education specialists raised similar concerns. Nearly 6 percent of teachers in England are non-UK nationals, with overseas staff particularly important in secondary-school subjects where recruitment is difficult, including physics and languages. Higher-education analysts also warned that additional wage costs could deepen financial pressure on universities, many of which are already operating at a deficit.

The proposal has not yet been accompanied by detailed rates or sector exemptions, leaving its eventual financial effect uncertain. Reform UK was contacted for comment by the original reporting outlet. Any assessment of the policy will depend on the final design, including the charge level and whether employers providing essential public services receive relief.