No Recourse to Public Funds: Homelessness

Jim Shannon Excerpts

Tuesday 16th December 2025 Westminster Hall

[Olivia Blake (Sheffield Hallam) (Lab)]

I beg to move,

That this House has considered No Recourse to Public Funds and homelessness. 

It is a pleasure to serve under your chairship, Dr Murrison. I point hon. Members to my entry in the Register of Members’ Financial Interests for the help I receive from the Refugee, Asylum and Migration Policy Project for the work I do in this area. I am also the co-chair of the all-party parliamentary group on migration.

This is the second debate I have secured this year on no recourse to public funds. It is also the second time I do so with a profound concern that our stated ambitions of prosperity over poverty, and reducing homelessness and child poverty, are being actively undermined by immigration policies that are designed to do the very opposite.

This debate could not be more timely. Just days ago, the Government published their homelessness strategy. While I welcome the strategy—there are a number of measures contained within it—it is disappointing that it stops short of introducing meaningful action to tackle homelessness among one of the most vulnerable groups, which is migrants affected by the no recourse to public funds condition. As was highlighted in my previous debate, that group includes many children.

Our understanding of homelessness remains partial and fragmented. Official data routinely fails to capture hidden homelessness, which is especially prevalent in migrant communities.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady—I spoke to her beforehand. It has been brought to my attention in this last period of time that there is a proportion of people in the United Kingdom of Great Britain and Northern Ireland who are survivors of trafficking. They were brought to the UK with unresolved status and they therefore struggle to access public funds for secure accommodation. Does the hon. Lady agree that those who are here illegally, but not because of their own choices, should be able to access the necessary support to help them gain safe and secure accommodation while they figure out how to get out of the mess they are in?

[Olivia Blake]

That is a very timely intervention, as we consider our aims to reduce violence against women and girls. As we know, many women are trafficked and suffer sexual abuse and sexual violence as a result. I absolutely agree: the least we could do is make sure they have a safe roof over their heads when they come forward for help and assistance. The hon. Member highlights an important point.

The Housing, Communities and Local Government Committee has repeatedly highlighted the urgent need for robust data on migrant homelessness and no recourse to public funds. Will the Home Office commit to collecting better data on the number of people subject to no recourse to public funds who are at risk of, or are currently experiencing, homelessness?

Even in the absence of comprehensive figures, every available indicator points to a growing crisis. Around 4.5 million migrants in the UK are subject to no recourse to public funds, which means no access to universal credit, child benefit, personal independence payments if they are disabled, or social housing. The latest rough sleeping figures underline the scale of the problem. On a single autumn night this year, 27% of those sleeping rough in the UK were non-British citizens. That is the highest proportion recorded since 2017. This is clearly a growing problem.

Migrants face the same pressures that could push anyone into homelessness, which is something we are all at risk of, including low wages, a shortage of affordable housing, the lack of support for mental health needs or substance abuse, but these challenges are compounded by the additional barriers imposed by the immigration system. These include prolonged settlement routes, high visa fees, the immigration health surcharge, lack of rights to homelessness assistance, the local housing allowance and discrimination from private landlords due to the right to rent.

As a result of being routinely locked out of social housing and housing-related benefits, people with no recourse to public funds are often forced to rely on overcrowded, unstable and often unsafe accommodation. When those arrangements break down, as they often do, people may be unable to access the last resort safety nets that exist to prevent homelessness. People with no recourse to public funds are therefore far more likely to fall into rough sleeping, not because services do not exist, but because their immigration status prevents them from being able to use them.

Once someone with no recourse to public funds becomes homeless, the reality they face is bleak. I have many examples, but most homelessness accommodation services have little or no provision for people excluded from the social security system. With services under immense pressure, more and more people are being forced to compete for fewer and fewer bed spaces. Too often, that leaves people relying on short-term emergency help from charities and faith groups that are already stretched beyond their limits.

Nowhere are the consequences of no recourse to public funds more stark than for survivors of domestic abuse. Many migrant survivors have their documents, finances and movements tightly controlled by a perpetrator through coercion and abuse. Those survivors are among the most vulnerable, yet they may be barred from welfare and housing support because of no recourse to public funds, leaving them unable to access safe accommodation, including refuges. Women’s Aid has found that over a quarter of women refused refuge spaces in the UK had no recourse to public funds, with many being forced to sleep rough, sofa surf or even return into the hands of their abuser. I know that some people can submit a change of conditions application to have the no recourse to public funds condition lifted, but the application process is complex and often requires legal advice to navigate and complete successfully. That advice is also in desperately short supply.

In South Yorkshire alone, two out of the five legal aid firms have stopped delivering legal aid and immigration services entirely, and there was a gap between provision and need of nearly 9,000 cases in 2023 and 2024 across Yorkshire. Research has found that 90% of people surveyed who attempted to have their no recourse to public funds status changed unassisted were unsuccessful. Yet when professional advice was sought and provided, 95% were subsequently successful.

Successive Governments have justified no recourse to public funds as a way to save money for the taxpayer and to ensure that migrants earn their settlement. The reality is very different for local authorities. Their statutory duties to support families with a child in need or adults with care needs means that councils end up supporting thousands of migrant households experiencing destitution and homelessness each year. Research from COMPAS, the Centre on Migration, Policy and Society, estimates that if all local authorities recorded data consistently, the annual cost of supporting no recourse to public funds households would be around £102 million each year. In 2023 to 2024, Sheffield city council spent at least £1.2 million supporting people with no recourse to public funds.