Report argues easing ‘no recourse to public funds’ conditions for migrants in need would deliver economic and social gains

A new report authored by the Centre for Social Policy Studies (CSPS) for the Trust for London examines the impact of the UK's No Recourse to Public Funds (NRPF) policy on migrants and calls for reforms.

You can download the 32-page report here.

As the report explains, the NRPF condition is imposed on many migrants who are subject to immigration control and means that they are not allowed to access public funds irrespective of their employment status, how much tax they pay or what their contribution to society is. Oxford University's Migration Observatory estimates that there were around 2.6 million people subject to the NRPF condition in 2023.

CSPS's report highlights numerous adverse effects of NRPF, including:

• Lower incomes for migrants performing the same jobs as British citizens.
• Barriers to accessing financial support for British-born children of migrants with NRPF.
• Increased vulnerability of women to abuse due to limited access to domestic violence services.
• Higher risks of poverty and homelessness among working migrants.

While the policy is intended to reduce taxpayer burdens and promote integration, the report notes that evidence suggests it creates additional costs for local authorities, fosters inequality, and hampers migrants' ability to integrate into society.

CSPS concludes that the policy does not achieve the objectives for which it was created and it should be reformed, with access to support being extended for some groups and individuals currently covered by NRPF conditions.

The report importantly emphasises that the number of migrants who would need access to public funds would be relatively small: "Overall, this report finds a strong case for reviewing NRPF policy and opening up access to public funds for some, or all, legal migrants to the UK. The first thing to note here is that this would not mean providing benefits / or other financial support to all migrants to the UK. A large majority of migrants are either required to demonstrate their self-sufficiency (e.g. students) or enter the UK into relatively high paying jobs. These individuals and families are unlikely to ever need financial assistance, and if their study or work ends, they would be expected to leave the UK. That means the size of the group of people / families covered by NRPF who would actually need access to public funds is likely to be relatively small."

CSPS added: "We estimate that the number of people who are affected by the NRPF condition to some degree is 583,000, equivalent to around 208,000 households. This is made up of people with family visas, dependant visas, BNO (British national overseas) visas and people on Health and Care Worker visas who are subject to the lower minimum income threshold due to their job being on the Immigration Salary list. Because people on these visas do not have a minimum income thresholds, they are more vulnerable to sudden financial shocks and may need support for temporary periods. Furthermore, we estimate that there are 64,000 households subject to the NRPF condition in poverty and who would need government support, based on the assumption that households subject to the NRPF condition are in poverty at the same rate (31%) as all foreign-born households."

The report puts forward a package of recommendations that would help support the most vulnerable migrants while allow the government to retain the broad principle of NRPF. Eight specific recommendations are made as follows:

• Allow guardians who are resident in the UK to apply for change of conditions and/or access to specific public funds on behalf of eligible children, irrespective of the parents' visa restrictions.
• Allow all parents, irrespective of their immigration status to access childcare funded by the government so that they can work as much as they need to.
• Provide access to public funds for those on work visas on the shortage occupation list.
• The Government should develop a policy that defines the kind of support that will be granted to all NRPF holders in need during emergencies, irrespective of their income levels.
• Do not automatically re-impose the NRPF condition on visa renewal if the candidate has had a successful change of conditions application in the past.
• Reform visa renewal costs by reducing renewal fees or extending the time period between visa renewals from 30 months to 60.
• Central Government should provide funds to Local Authorities to meet the costs of support they are statutorily required to provide to those covered by an NRPF condition.
• The Home Office should create a database of all relevant immigration information, especially datapoints related to NRPF and publish regular data.

CSPS said: "If implemented, we believe these reforms could bring significant benefits. Apart from the economic and social benefits, the reforms would strengthen the principle of reciprocity and be fairer for children who are (or could be) UK citizens. Ultimately, migrants contribute to the UK's economy and society. Beyond all the individual and cultural benefits they bring to our communities, migrants are indispensable for keeping key sectors of the country's economy functioning and for supporting our health and social care sectors. The UK has the opportunity to be a leader in championing the cause of a free and fair society that provides everyone with the opportunity to succeed. If someone is contributing their time and labour to the economy or society of the country, fairness would suggest they should be supported in their time of need. Addressing the impact NRPF has on those most in need is a critical step in this process."