Source · Select Committees · Foreign Affairs Committee
Recommendation 6
6
Paragraph: 18
Whilst a relatively large financial package was developed for those suffering from COVID-19 related financial...
Recommendation
Whilst a relatively large financial package was developed for those suffering from COVID-19 related financial hardship in the UK, little was done to provide help for those UK citizens stuck abroad. The FCO had emergency loans available, but both take up and awareness were low. The FCO also made clear that it was only willing to offer these loans as a last resort, preferring to advise people to borrow from friends and family and, early on in the crisis, asking people to crowdfund their way home. Whilst the crowdfunding advice was eventually removed from the FCO’s website, we are disappointed that the FCO ever considered this acceptable advice to give to a British Citizen seeking help. We recommend that the Foreign Office commits to removing its advice on Crowdfunding from all future guidance on loans. It should also proactively publicise that emergency loans are available in times of crisis.
Paragraph Reference:
18
Government Response
Not Addressed
HM Government
Not Addressed
British nationals who are overseas and wish to return to the UK, but cannot afford travel costs and have no other options for getting funds to return home, may apply for an emergency loan from the government as a last resort. This was not a new policy, but our processes were updated during the pandemic to be as streamlined and simple as possible. From 5 May, the FCDO offered a new loan to help BNs who were unable to return to the UK due to travel restrictions. This loan was provided to cover essential living costs such as food and accommodation while they waited to return. The availability of the repatriation loans was widely publicised on gov.uk with details on how to obtain a loan provided on the FCDO Travel Advice pages, promoted on social media and in some cases through some paid-for marketing in countries. The communication of subsistence loans, agreed with HM Treasury, required careful handling to ensure we were able to provide the loan to those most vulnerable but to also ensure this loan was not abused, that it did not incentivise people to remain overseas, it did not pose an opportunity for fraudulent applications, and did not overwhelm call centres. For these reasons, we did not make a specific media announcement, but did make it clear on travel advice, and through consular teams. From the launch of subsistence loans until the end of July we received 1,556 applications, of which 204 were approved. The low approval rate was due to a high number of ineligible applications, including from those who were not British nationals normally resident in the UK or who were seeking to remain overseas despite commercial travel options being available, and potentially fraudulent applications. We agree with the FAC regarding crowdfunding. The reference to crowdfunding has been removed from both our internal guidance and public guides. We no longer advise British nationals to seek funding for repatriation through this process. This was confirmed at the FAC evidence session on 30 June 2020 by Jennifer Anderson, Director Consular Services.