Migrant workers are driving down pay in low skilled jobs

David Cameron is trying to limit in-work benefits for EU migrants
David Cameron is trying to limit in-work benefits for EU migrants
ZEROCREATIVES/ CORBIS

Mass migration has driven down the wages of workers in low-skilled jobs in the service industries, according to research by the Bank of England.

The influx of a huge number of eastern Europe migrants into jobs in catering, hotels and social care has led to an average 2 per cent cut in pay for workers in these sectors.

The report comes as David Cameron battles with Brussels to limit in-work benefits for EU migrants in an attempt to cut the numbers heading to Britain. The paper will be seized on by those who say that immigration has hit the poorest hard while helping the wealthy.

Hundreds of thousands of migrants have found low skilled jobs in the service sector, which makes up three quarters of