Benefit of scrapping NRPF could be up to £872m over 10 years; Covid NRPF free school meal extension made permanent
A new report commissioned by the Greater London Authority (GLA) finds that removing the 'no recourse to public funds' (NRPF) condition imposed on many migrants would result in a substantial net benefit to the UK's finances.
The 119-page report, Social Cost Benefit Analysis of the no recourse to public funds (NRPF) policy in London, was authored by the London School of Economics and Political Science (LSE). It can be downloaded here.
The report calculates that the gains in removing NRPF would outweigh the additional costs incurred by up to £872 million over 10 years.
Research by the LSE focused on migrants holding visas whose primary purpose is to work, and their family members. Overseas students and undocumented/irregular migrants were excluded from the research.
Researchers considered two options: first, removing NRPF from households with dependent children; and second, removing NRPF from all households (i.e., single people and childless couples in addition to households with children).
The authors explained: "Our objective was to provide a robust Social Cost Benefit Analysis (SCBA) of the removal of the NRPF condition for a specified group of migrants with work related visas, and their family members. On the basis of our modelling, we conclude that removing the NRPF condition either for households with families (Option 1), or for any household (Option 2) would produce gains in excess of the costs, both in the short term and over a ten-year period. The gains would be more under option one.
"These gains are from a range of savings his is in part because providing recourse to social security support would address many of the problems of destitution and poor housing presented to local authorities and third sector services, who could invest resources elsewhere. Lifting NRPF conditions for those with limited leave to remain would result in a positive net present value of £428 million over a 10-year period (Option 2) while lifting NRPF conditions for families with children and other vulnerable individuals would result in an overall net present value of £872 million analysed over a 10-year period (Option 1)."
Kath Scanlon, Distinguished Policy Fellow at LSE London and one of the authors of the report, said: "We looked at people who have a recognised, legal right to be in the UK. Many of these individuals would not qualify for means-tested benefits even if they did have access to them. However, for those people who do fall on difficult times and would otherwise qualify for assistance but for the NRPF condition, our analysis shows that it makes sense economically and socially to provide help from public funds."
According to the report, the positive effects of a policy change to scrap NRPF would be concentrated on children and young people, and the gains would be of lifelong value not only to them but to British society more generally.
The Mayor of London called on the Government to abolish the NRPF condition.
The Mayor said: "The Government stated that the NRPF policy was designed to promote integration in society and encourage migrants to be financially independent so that they are not a 'burden' on taxpayers. However, significant evidence shows the policy is having the opposite effect, exacerbating social, economic, and racial inequalities."
Meanwhile, the Government announced last week that the temporary Covid-19 extension of free school meals to children from families with NPRF has now been made permanent.
In a written statement on Thursday, Will Quince MP, the Parliamentary Under Secretary of State for Children and Families, said: "In 2020, we temporarily extended free school meal eligibility to include some children of groups who have NPRF. I am pleased to confirm that, following a cross-government review, we will permanently extend eligibility for free school meals to children from all families with NRPF, subject to the income thresholds as follows:
"• £22,700 per annum for families outside London with one child.
• £31,200 per annum for families within London with one child.
• £26,300 per annum for families outside London with two or more children.
• £34,800 per annum for families within London with two or more children.
"These thresholds were developed to create comparative thresholds with broad equivalence with families with recourse to public funds, and who qualify for free school meals due to being in receipt of welfare benefits."
The permanent extension will begin from 19 April 2022. Guidance advising schools how to check and validate eligibility for NRPF families will be published shortly.
Azmina Siddique, Policy and Impact Manager at The Children's Society, warmly welcomed the Government's announcement.
Siddique said: "We know from our work at The Children's Society that low-income families with NRPF, who miss out on benefits like Universal Credit, often struggle to make ends meet. Many of these parents are single mums, who are in low-paid jobs and on zero-hours contracts. They work hard and pay taxes like everyone else, but can't afford the essentials without a safety net to fall back on. This can harm their children's health, well-being and life chances. With the cost of living crisis looming and families facing impossible choices between basics like heating and eating, this extension will take some pressure off hard-working families."