Theresa May refuses to "quantify" cost of "health tourism" as she panders to immigration fears

The Home Secretary glossed over the fact that "health tourism" costs just 0.01% of the NHS budget.

Among the measures included in the government's new immigration bill, which is published today, is the introduction of a £200 charge on all temporary migrants, such as overseas students, to use the NHS and a requirement for GPs to check the migration status of new patients. 

Both policies are aimed at solving the alleged problem of "health tourism", whereby migrants travel to the UK to seek free healthcare, but how costly is this "abuse"? In 2011-12, the NHS officially spent £33m on treating foreign nationals, £21m of which was recovered. This means that just £12m, or 0.01 per cent of the health service's £109bn annual budget, was lost to "health tourists". The cost of administrating the new system could well outweigh the savings (the chair of the Royal College of GPs, Clare Gerada, estimates that staff costs alone will amount to £500m), while also increasing public health problems such as TB by deterring temporary migrants from seeking treatment when they first fall ill. 

Challenged on this point on the Today programme this morning, Theresa May repeatedly refused to "quantify the problem", instead describing it as "a point of principle" and noting that the public believe "there is an issue out there". In other words, the government is making policy based on fears, rather than facts. 

A dose of sanity was provided by east London GP Paquita de Zulueta, who warned that the bill would make it "considerably harder for vulnerable migrants in considerable need to access healthcare" ("if they can't access primary care or they're too frightened to they'll wait until they're really ill," she said) and pointed out that "we're net exporters of patients". 

But to May, the woman who once warned that the Conservatives were seen as "the nasty party", all of this is irrelevant as where UKIP leads, the Tories follow. 

Theresa May speaks at the Conservative conference in Manchester earlier this month. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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