How to handle unexpected migration

Find out potential results of a migration and how you can avoid pitfalls.

By Nicole Hamer |

13:26 03 May 2013

This coming January 2014 will drop the employment limitations on Romanian and Bulgarian workers. They are currently restricted in terms of where they are able to procure work, but will enjoy the same rights as other members of the European Union (EU) in 2014.

 

Some are concerned about the effects of a mass migration since Romania and Bulgaria are some of the poorest countries, but recent polls show that most of the surveyed people would only move if they had a definite job waiting for them. This may have less of an impact than expected, but there are still some financial impacts to consider.

 

What does this change potentially mean for the UK?

 

• Finances—if people move into the UK with jobs, there may be an unexpected stimulus for the economy. There may be increased spending as well as home and vehicle loans.

 

• Competition—most likely there are a number of people struggling with unemployment, who are worried that they will face even greater competition than they do at present.

 

• Housing—depending on how many people do decide to travel to the UK, there may be a housing shortage, or it could stimulate new growth due to the need for more housing. This could be only a momentary hurdle which might eventually assist the economy, and combines with the home and vehicle loans for the finance section.

 

• Healthcare—with growing concern about the proposed gaps in the NHS by the year 2020, an influx of more people could throw off the precarious position of the programme and command changes to the system sooner than expected.

 

How to avoid potential setbacks in the event of a population increase:

 

• If you have been trying to get home or vehicle loans, ensure you do that before there may be more competition for both the funds and the housing. Banks won’t need to compete as much if there are many people clamouring for their services.

 

• Establish a savings accounts for emergencies, repairs, or in the event that you are faced with a financial difficulty that would put home or vehicle loans in jeopardy.

 

• Decide if Payment Protection Insurance is right for you. If there is increased working competition, you’ll want to have your recent investments protected.