The inquiry has been prompted by a faster than predicted growth of immigration since May 2004 when eight Central and Eastern European countries joined the EU and their citizens gained the right to work in the UK.

Focusing purely on the economic effect of immigration the Committee will consider issues such as: the numbers and characteristics of recent immigration; what sectors and occupations migrants are employed in; what impact immigration has had on the labour market, including wages, unemployment and working conditions in the UK; how immigration affects public finances and public services; and how data on immigration can be improved.

Speaking at the launch of the inquiry, Lord Wakeham, chair, House of Lords Economic Affairs Committee, said: “Immigration has clearly had a substantial economic impact on the UK.

“The Government often point to the positive impact, allowing economic growth without inflation, while others have expressed concerns about negative effects on the pay and working conditions of low skilled British workers. 

“What is clear in this argument is that there has not been a balanced assessment of the economic effect of the large scale immigration we have seen in recent years. We hope to provide that.”

He stressed that the inquiry was not intended to make judgements on the cultural or social impact of immigration, rather their focus would purely be in its economic effects. As such he said they would be asking: “Has it performed a vital role in filling vacancies in the labour market or has it simply undercut wage levels of British workers?  What sort of impact is immigration now having on the availability of housing and on the resources of the education system and the NHS?”

He added: “These are the types of questions we will be seeking to answer and we welcome evidence from any interested parties.”

The deadline for submissions of written evidence is Sunday 30 September 2007. The full Call for Evidence can be found here.