Immigration and Asylum Bill (Tenth sitting) Debate

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Department: Home Office
As I have raised in discussions on other amendments and in other comments, it must be the top priority for the Home Office to get decisions right the first time. That would allow people who have a protection claim to start rebuilding their lives, getting jobs, finding their own housing, and allow the Home Office to focus on processing people who do not have a claim and speed up the removals of those people where it is possible to do so. It would be useful to hear what plans the Home Office has for improving the quality of decision making and whether it would accept this kind of incentive. Amendment 80 is also about cancelling the liability under certain circumstances.
Paul Kohler Portrait Mr Paul Kohler (Wimbledon) (LD)
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Amendment 50 addresses the fact that, according to the clause, children will become indebted on their 18th birthday—we have heard an indicative amount of £10,000, but it might be more. Clearly, no child has contributed fiscally when they reach maturity to the benefits they have received from the state—be that benefits or education—but the clause is othering child refugees and seems wrong in principle and wrong in practice. I ask the Minister: does it apply to all child refugees who reach maturity while receiving asylum support? Does it apply to victims of trafficking, for example? This seems wholly wrong. As I say, if we want refugees to integrate, othering them in this way does no good whatsoever and simply fuels the frankly toxic debate in this country that refugees are somehow not part of our community. We need them to become part of our community. Othering them in this way does no good.

Blake Stephenson Portrait Blake Stephenson (Mid Bedfordshire) (Con)
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It is a pleasure to serve under your chairmanship, Mr Twigg. This group is about who should be exempt from the duty to repay asylum support and when a debt should be cancelled. Five of the grouped amendments—four in the name of the hon. Member for Brighton Pavilion and one tabled by the Liberal Democrats in the name of the hon. Member for Wimbledon—would widen the exemptions or write off the debt. The Opposition take the opposite view, unsurprisingly. The exemptions in clause 23 are already too wide, which is why I tabled amendments 139 and 142.

Clause 23(6)(b) exempts anyone who

“started to receive asylum support before the day on which this section comes fully into force”.

That is not an exemption for support received before the law changes; it is an exemption for all the support that a person will ever receive before or after commencement. The Government tell us that about 97,500 people are receiving support and, as the Bill is drafted, every single one of them will be exempt for life. Between now and the commencement date, which the Government have not yet given us—with appeals taking over a year, the first charges under this clause may be many years away—how many people will be exempt under subsection (6)(b)? Why not exempt only the support received before commencement, so that people already in the system contribute to the support they receive once the law has changed? When do the Government intend to bring clause 23 fully into force and levy the first charges?

Clause 23(6)(c) will allow the Secretary of State to exempt “any other description” of a person by regulations. The explanatory notes tell us that victims of modern slavery will be exempt. Under clause 50, those regulations will be subject only to the negative procedure. The Government’s reasoning is that exemptions do not disadvantage the people affected. They may not disadvantage the people exempted, but they certainly affect the taxpayer. A series of negative instruments could hollow out the scheme without a debate in the House. Which further categories do the Government intend to exempt, and why do Ministers not think that Parliament should be able to approve those?

Amendment 139 would remove subsection (6)(b), which is the exemption for everyone who started to receive support before clause 23 is fully in force. As I said, that will exempt around 97,500 people for life for the support that they receive, as well as anyone who enters support before a commencement date that nobody has given us. The Opposition’s intention is simple: people already in the system should contribute for the support they receive once the scheme is in force.

Amendment 142 would make regulations creating further exemptions under subsection (6)(c) subject to the affirmative procedure. The Government say that the negative procedure is enough because exemptions do not disadvantage the people exempted. That may be the case, but it certainly is not the case for the taxpayer, who is burdened with the cost. A series of negative instruments could hollow out the scheme, as I mentioned earlier.

Amendments 77 and 50 would exempt anyone who was under 21 or 18, respectively, at any time while they were supported, rather than those who were children throughout. That would mean that someone who arrived at 17 and was supported for years as an adult would pay nothing. We will oppose both those amendments.

Amendment 82 would exempt anyone granted leave after a successful appeal. Mr Featonby of the Refugee Council made the point for us. He said that

“the majority of people who will ever be in a position to even start to pay back that money are people who are going to go on to get protection.”––[Official Report, Immigration and Asylum Public Bill Committee, 15 September 2026; c. 32, Q53.]

Exempting those who win on appeal would remove a large share of the people who could pay, and would reward the cases that took the longest.

Amendment 78 would add exemptions for people over retirement age, recognised victims of trafficking, survivors of sexual or gender-based violence and domestic abuse, and victims of torture, rape or serious violence. Those are sensitive cases, and the Government have said that victims of modern slavery will be exempt. The right way to decide those exemptions is in regulations that the House has seen and approved, not by negative instruments that can hollow out the scheme, as I mentioned earlier. Which categories will the Government exempt, and will draft exemption regulations be provided before Report?

Amendment 80, tabled by the hon. Member for Brighton Pavilion, would require the Home Secretary to cancel a person’s liability upon death or permanent incapacity, when they reach 65, or 10 years after their support ended. There is a fair question underneath that. Student loans, which are the basis for the model that we proposed, are written off after a set period, but a 10-year write-off that starts when support ends would allow anyone to wait out the debt and simply not pay. The amendment is far too wide, and we will oppose it. Do the Government intend to have any write-off period at all, and if so what?

Finally, the Opposition will oppose amendments 77, 50, 78, 82 and 80. The clause already exempts everyone now in the system for life and allows further exemptions by negative instrument. Amendment 139 would close the first gap and amendment 142 would close the second. I will press amendment 139 to a Division.

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I welcome the Government’s approach to these clauses and I support the principle that underpins them. I look forward to seeing the regulations translate that principle into an effective and proportionate system that delivers for taxpayers, supports proper administration of asylum and helps restore public confidence in our immigration system.
Paul Kohler Portrait Mr Kohler
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As we have heard, the Bill offers little detail on how the asylum support repayment system will work in practice, such as how repayments will be made, the exact amount that refugees will be expected to pay back, and how much refugees need to earn before they are required to make repayments. Can the Minister commit to a timeline for bringing forward those crucial details?

Requiring refugees to pay back their asylum support is likely to create barriers to integration, leaving refugees in debt at exactly the point where they should be focused on rebuilding their lives. How will the Home Office ensure that this proposal does not undermine wider Government objectives on improving social cohesion? The Red Cross questioned that in its evidence. How will the Home Office ensure that the asylum support repayment system does not leave refugees vulnerable to exploitation if they are struggling the repay their debt? Hon. Members raised questions on clause 23(5). As the hon. Member for Brighton Pavilion said, affordability is very different from destitution—destitution is such a high bar. If people are trying to integrate into society and they cannot afford these repayments, what will happen? They will become vulnerable to loan sharks. That is the kind of problem they will face.

I would also like to focus on the consequences of non-repayment. If refugees are required to fully repay their debt before being eligible for settlement, that risks leaving the most vulnerable with prolonged insecure status. Can the Minister clarify that point? Will refugees who are unable to work through no fault of their own, for example due to medical conditions or care responsibilities, still be able to qualify for settlement? I would also like to hear an answer on that from the Minister.

Siân Berry Portrait Siân Berry
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I have spoken quite a lot about my overall position on these clauses, but I would like to say a little more about the fact that clause 23 gives the Home Secretary the power to require these unfair payments from a minority of asylum seekers who are destitute when they arrive here. The Minister needs to consider the lack of safe routes and the extent to which people wanting to claim asylum here end up more destitute as they are exploited the entire way by the kind of organised criminals that are currently running the only routes into this country. We need to see much more detail than is on the face of the Bill about how the system will work.

I essentially wish to speak in support of amendment 140, tabled by the hon. Member for Mid Bedfordshire. He makes a good point. On Second Reading, the Home Secretary promised that Parliament would have the opportunity to see draft regulations, but we have not seen them yet. The Committee is being asked to assess and approve a system when we are not able to scrutinise the details. We deserve to see more of them now. They are not minor details. We have already spoken about the fact that £10,000 is the amount that the Government are talking about, but that is not on the face of the Bill, and neither is the payment threshold nor how much people will have to pay over that amount. All of that is information that we would need to assess the impact that this policy would have on individual refugees at the point they are trying to rebuild their lives, not just on the public purse, as the Opposition amendment seeks to set out.

Although the Government have indicated how they might recover those payments, the detail of the Bill does not cover everything. They say it will enable the Home Office to have its own cost recovery mechanism, supported by HMRC, which will apparently play its part. How will that work, how will it sit within other parts of the Government’s core protection system, and how much will it cost? That is especially important when weighed against the fact that the policy might bring in only limited amounts and may even reduce the overall tax take from this group. Without knowledge of the decisions about the system, the Government may be proposing something that costs the public purse large amounts in cash terms, let alone in its wider impacts. I think we need to see the Government’s analysis of all this.

It is also important to acknowledge that individuals claiming asylum have fled war and persecution and are not responsible for the overall cost of asylum support. That cost has grown, often as a result of policy decisions or failings of this Government and the previous one. Earlier, we discussed the difference in cost between nightly paid hotel accommodation and properly settled dispersal accommodation in genuine homes. The Government are not spending their money wisely at present, and I think Ministers are seeking to address that. Would tackling that not be more cost-effective than trying to recover money from close-to-destitute asylum seekers?

The Home Secretary has also said this policy is introducing a “contributory principle”. What she ignores, however, is that refugees do contribute, and have always done so, through working, paying taxes and contributing to their local communities. In fact, on wider impacts, the refugee tax is not introducing the idea that refugees should contribute. In my view, it is making it harder for them to do so, while also harming community cohesion and integration.

A policy that was truly focused on increasing refugee contributions could look at how barriers to employment can be removed, so that people can access work more easily, progress in a career and transfer their qualifications to this country. I have had casework on those matters, which are barriers to refugees contributing to society through their taxes and making the most of the skills they can bring here by accessing education and further training. That would all help the Government to address asylum support costs, but it would do so by supporting vulnerable refugees, not targeting them with this tax.

Has the Minister really addressed, in any of her comments today, the facts in the letter she wrote to us at the end of the oral evidence session, which admits fully that three in five of the people currently awaiting a decision are not claiming support? Why are those people not being asked to contribute in any way, if recovering the costs from people is the most important thing to the Government? Amendment 140 gets to the heart of that: what is the balance of payments?

Finally, I believe this policy is cruel. It seeks to deter people from coming to this country, and that is the key reason why it is so targeted at the most vulnerable refugees, and not at those who can pay their own way. However, will it actually work as a deterrent? In general, the Home Office already has evidence that punitive measures such as the refugee tax have little impact on where people choose to seek asylum. Furthermore, in the oral evidence session, when asked about this, the Refugee Council highlighted that people will be able to avoid these payments simply by not applying for asylum support while their application is being processed, a risk also recognised in the Home Office’s impact assessment. Although that may reduce asylum support costs, I do not think that such a result is the Government’s intention, as it will push more people seeking asylum into vulnerable situations in which they can be exploited further. Do the Government not think that policies from this and previous Governments have already done enough of that?

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Anna Turley Portrait Anna Turley
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The hon. Lady makes an important point, but I do not see that the implications will fall on local authorities. As I said, in the course of publishing regulations as a result of the passage of the Bill, we will explore the mechanisms for bringing the money in and for where it will go in the Exchequer. However, at this point I do not want to commit to any undertakings to local authorities. The measure is about ensuring that people contribute and pay their fair share.

The hon. Lady mentioned work—we share that commitment. We all want to see those who have come here fleeing persecution move as quickly as possible into work and into contributing to this country. That is why our new work and study routes will allow people to get off core protection, off dependency and as quickly as possible into the work and study routes that we will provide and encourage asylum seekers to use.

Paul Kohler Portrait Mr Kohler
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I wish to make two swift points about what the Minister has just said. First, does the tax system not allow people to contribute—is that not the whole point? When people are integrated, they contribute via the tax system. Othering refugees because they came to us as refugees strikes me as completely the wrong approach, and one that we do not apply to other forms of state help.

Secondly, I am no doubt being obtuse here, but can the Minister point me to the consequences for non-payment? I am still not clear on that.

Anna Turley Portrait Anna Turley
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The hon. Gentleman’s first point is not correct. We ask immigrants to pay a number of other things, including the health surcharge. Asylum seekers have the opportunity to contribute not just through taxes, but by making a significant contribution to these substantial costs. There are very few benefits that our constituents get and would not be expected to pay back in some form.

Paul Kohler Portrait Mr Kohler
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The Minister mentions the health surcharge, but it is different for somebody who comes to the country on a work visa and goes in with their eyes open about what the deal is, how they will be paid and how the market assesses costs to them. We are talking here about supporting people who are desperate and have come to us for help, and then saying, “Oh, by the way, you now owe us a vast amount of money.” What we should want is for them to contribute by integrating into society and paying their taxes.

Anna Turley Portrait Anna Turley
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I think the hon. Gentleman completely misses the point about the principle of fairness. I invite him to come and talk to some of my constituents, who might feel differently from his. Some of them feel extremely aggrieved that a huge number of people create this £4 billion burden on the taxpayer. I invite Members to think about what we could do with that money. Of course, we want to fulfil our obligations to those who come here fleeing war and persecution, but we are giving them quite substantial support, and I do not think it unacceptable or inappropriate to ask them to contribute towards those costs when they are integrated, in work and earning enough to do so.

The Government are committed to ensuring that the scheme is transparent and deliverable, and provides value for money. As we have discussed, this debate is, at its heart, about fairness. What we are discussing here is the concept of individuals who have benefited from the sanctuary and generosity of this country and its taxpayers making a contribution to the support that they have received. This is not about punishing anyone; it is about those who received support having a stake in this country’s success, and contributing to those costs—and thereby to the sustainability of that support for others—when they are financially able to do so.

The right to receive support must come with responsibilities. It is right that we provide support to those fleeing war and persecution, and that those who receive our support make a fair and proportionate contribution when they can, putting back into the system that supported them, contributing themselves to such support for those who come after them, and ensuring that the consent of the British public, who pay for that support, remains. Our constituents would expect nothing less. I therefore invite the hon. Member for Mid Bedfordshire to withdraw his amendment, and I commend clauses 23 and 24 to the Committee.

Question put, That the amendment be made.