No Recourse to Public Funds: Homelessness

Edward Morello Excerpts

Tuesday 16th December 2025 Westminster Hall

[Olivia Blake]

Yes, I think that that is a very valuable solution. It is one that we discussed in the last debate we had on children. This is an issue that affects children profoundly; therefore, councils have to pick up that cost, so the Work and Pensions Committee makes a very valid point.

I am glad that the commitments in the homelessness strategy provide £3.5 billion to homelessness services and welcome the renewed emphasis on prevention. However, despite those positive steps, the strategy falls short in its response to homelessness driven by the immigration system. It fails to grapple with the impact of restrictions on access to public funds and ignores the damaging consequences of the 28-day move-on period for refugees, which is another pinch point where people find themselves falling into homelessness.

I am glad that the Home Office is included as one of the key Departments responsible for delivering on the cross-Government strategy. However, it is disappointing that the Home Office is not held to the same standards as other Departments, which have been given clear measurable targets to end the discharge of people from institutions into homelessness. The strategy mentions a pilot in four council areas for people with restricted or unknown eligibility to public funds. I would welcome clarity from the Minister on that initiative and how local authorities are expected to use funding to support such migrants.

However, it is not clear how local authorities should use funding allocations to prevent and reduce homelessness among migrants at the moment. Existing successful schemes such as immigration advice services for people who are rough sleeping, including the Sub-regional Immigration Advice Service in London, the Restricted Eligibility Support Service in Manchester and the Home Office homelessness team and escalation team should be maintained, extended and replicated if we are to meet the challenge we face.

In the immigration White Paper the Government claim they want to halve long-term rough sleeping and tackle homelessness, but the policy outlined in the paper will inevitably prolong the risk for migrant communities for decades, extending qualifying periods to settlement to 10, 15 and 20 years. Prolonging the time without access to public funds will inevitably inflict penalties for those who do not receive benefits, which will exacerbate homelessness among migrants and create longer periods for which homelessness will become a concern and an issue for individuals.

Examples highlighted by Praxis are a stark reminder of the profound consequences of the policy. A child brought here at 14 on a visitor visa could face waiting until middle age for settlement. A mother who lawfully accessed universal credit after losing her job could be forced on to a 20-year path, and someone who lost their immigration status following a mental health crisis, already street homeless for two decades, could now confront an additional 30 years of uncertainty. Applying the proposals retrospectively would be a profound injustice for the hundreds of thousands of migrants and their British families who have already invested years of their lives, built communities and contributed financially to this country. I remind the Minister that anyone can fall victim to homelessness. We are each of us in a precarious state in the UK. We can pretend that some of us are isolated from it, but certain communities are exceedingly vulnerable to it, including migrant communities.

[Edward Morello (West Dorset) (LD)]

I congratulate the hon. Lady on securing this debate. The points she makes are extremely accurate and relevant. She talks about the ease with which people can fall into homelessness. It is incredibly sad that at this time of year my inbox is seeing an explosion in homelessness cases, including hidden homelessness and people living in cars, some still in work. No recourse to public funds is especially painful in rural areas, where there might be limited additional support of the type she talks about from charities and a shortage of emergency accommodation. Does she think that the recommendations she has made to the Government and what the Government need to look at should also focus on the peculiarities of rural areas and the difficulty of providing services there?

[Olivia Blake]

Yes, it is more challenging to provide support in rural areas, but there is also huge pressure on cities as well. As I mentioned earlier, the financial burden that falls on councils as a result of the policy is huge. Wherever they are in the UK, I think local authorities would say it is a challenge. That is why this needs to be taken in the round and why we need to look at how we tackle individual support.

I would also like to ask the Minister, in relation to the White Paper, on what basis the Government will be applying rules retrospectively. Will holders of indefinite leave to remain be subject to no recourse to public funds? How will local authorities be supported to manage the resulting poverty and homelessness? Will there be new burdens funding, for example, for local authorities, as they have to pick up the pieces? Does the Minister generally think that the Home Office’s earned settlement model is compatible with the Government’s ambition to halve rough sleeping and get back on track to end homelessness?

In my debate in June, I urged the Government to ensure that immigration policies do not deliberately plunge people into destitution and homelessness. I find myself stood here today repeating that call. Instead, we should be reviewing restrictions on access to public funds. We need clearer guidance on the legal powers and responsibilities of local authorities so that councils know when and how they are expected to accommodate and support migrants with limited eligibility for public funds. Crucially, we need proper funding from the Government so that local authorities can provide minimum standards of safe, suitable accommodation regardless of immigration status. That should move beyond trials and pilots so that every local authority can benefit from it.

We urgently need to create a system that no longer traps people in poverty or pushes them into homelessness. Without that, we fail some of the most marginalised people in our society, increase pressures on public services and deepen the social divisions and instability in our communities that so many of us are so concerned about.