Op-ed: Expanding "Homes for Ukraine" Could Ease Many Burdens at Same Time

Image © David Holt, Accessed: Flikr, Licensing Conditions: Creative Commons 

Replicating or extending the "Homes for Ukraine" scheme in Commonwealth countries like Sri Lanka and South Africa is one way in which the British government could support the UK economy while also helping to ease economic difficulties in other parts of the world over the coming year.

The Homes for Ukraine scheme has provided more than 100,000 Ukrainians with a three-year work visa and access to some forms of welfare with many said to have found employment since the scheme first opened in March 2022, which has helped to soak up excess job vacancies.

But Office for National Statistics (ONS) figures suggest there were still 1.18 million unfilled vacancies at the end of October despite five consecutive quarterly falls. 

This number of unfilled vacancies is a part of why average annual pay growth has remained above 4% on some measures and that is a part of why the Bank of England has warned that inflation could remain at higher-than-expected levels over the coming year. 

While raising Bank Rate significantly further from its current 3.5% level is one way the BoE could return inflation to its 2% target, extending the Homes for Ukraine scheme to include Commonwealth countries where there are workers able to speak the English language would deliver broader and wider spread benefits.

"Sri Lanka is experiencing a severe economic crisis which has led to shortages of basic necessities including medicines, cooking gas, fuel and food. The major shortage of fuel (diesel and petrol) is affecting transport, businesses, and emergency services," a government travel advisory says.

"Protests about the economic situation have led to violence against peaceful protesters in recent months, resulting in injuries and loss of life. Tear gas and water cannons have been used to disperse protesters," it adds in part.

Sri Lanka is a country where English is spoken by part of the population and at the heart of the national crisis is said to be a shortage of foreign currency that could be steadily eased through the remittances of migrant workers. 

There would also be opportunities for cultural exchange and benefits for other countries in the region too, though mostly for India and China.

The latter two countries have done much of the heavy lifting in attempts to support Sri Lanka so far though mainly through charitable donations that might be unsustainable.

"South Africa is already the UK’s biggest trading partner on the continent, and we have ambitious plans to turbocharge infrastructure investment and economic growth together," Prime Minister Rishi Sunak said during a state visit to the United Kingdom by South African President Cyril Ramaphosa.

"A new education and skills partnership between the UK and the South African governments will also promote shared learning in technical and vocational education, driving youth employment," the Prime Minister also said. 

South Africa is another country where there is a labour market disparity with the UK and English is often spoken.

The economy added almost a quarter of a million jobs last quarter but unemployment came in at 7.7 million while the jobless rate sat at 32.9%.

"The UK’s relationship with South Africa is hugely important to us. Together we are working to deliver for the British and South African people, creating jobs, enhancing trade and investment, and boosting inclusive economic growth," Foreign Secretary James Cleverly said in November.