The UK government is introducing a new law requiring refugees to repay their living costs through a student loan-style scheme, with a flat charge of £10,000. The policy, part of the Asylum and Immigration Bill, will apply to individuals granted refugee status after seeking asylum. Once they earn above a certain threshold, they must repay the Home Office proportionally. The full repayment is required before they can obtain settled status, and those who leave the country must pay to return.
Criticism from refugee charities
Refugee charities have condemned the policy as a 'tax' on those fleeing persecution. Imran Hussein of the Refugee Council called it 'unfair, impractical and [would] make it much harder for families to rebuild their lives and stand on their own feet.' He added: 'When somebody is granted refugee status, that should be a moment for them to finally feel safe and supported. Instead, they would now face an unavoidable £10,000 debt, making their road to permanent settlement much more difficult.'
Financial and practical concerns
Madeleine Sumption, director of Oxford University's Migration Observatory, told the Guardian the scheme would likely raise a 'relatively small' amount of money, as it targets a 'very low-income population.' She warned it could 'discourage [asylum seekers] from working once they get refugee status because they face a higher effective tax rate.' Home Office statistics show that 60% of asylum seekers employed eight years after their claim was granted earn minimum wage or less.
Government justification
Home Secretary Shabana Mahmood defended the policy, stating: 'The cost of asylum accommodation on the British taxpayer is too high. We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so. Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.'
Broader asylum reforms
The announcement follows Mahmood's proposal to involve the public in deciding asylum appeals under a magistrate-style system. She is also expected to unveil new safe and legal routes for asylum seekers, potentially appealing to left-leaning colleagues. The new law is set to be introduced to Parliament today.
