No Recourse to Public Funds: Homelessness

Neil Coyle Excerpts

Tuesday 16th December 2025 Westminster Hall

[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.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

I congratulate my hon. Friend on securing this debate. She is right that it is not cost free to do this. London councils spend tens of millions of pounds supporting families through emergency accommodation. Does she agree with the Select Committee on Work and Pensions report in the last Parliament, which suggested exempting parents with dependent children from no recourse to public funds?

[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.