The UK government is introducing a new law that will require refugees to repay up to £10,000 for living costs they received while awaiting asylum decisions. The policy, part of the Asylum and Immigration Bill, mandates that refugees pay a flat charge before they can qualify for settled status in the UK.
How the Repayment Scheme Works
Under the proposed system, refugees who have been granted asylum and later earn above a certain threshold will be required to send a proportion of their income to the Home Office. The government is exploring a flat charge of £10,000, which would not accrue interest. Refugees must make the full payment before becoming eligible for settled status. Those who leave the country will also need to pay if they wish to return in the future.
Criticism from Refugee Charities
Refugee charities have condemned the policy as a 'tax' on people fleeing war, torture, and persecution. Imran Hussein of the Refugee Council called the move '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.'
Potential Economic Impact
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 of potential negative effects, such as 'discouraging [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 were earning 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.' The announcement follows Mahmood's proposal to involve the public in deciding asylum appeals under a magistrate-style system and her plan to unveil new safe and legal routes for asylum seekers.
