Source · Select Committees · Foreign Affairs Committee
Recommendation 7
7
Not Addressed
Given the economic impacts of the COVID-19 pandemic, many people may need to seek extensions...
Recommendation
Given the economic impacts of the COVID-19 pandemic, many people may need to seek extensions to the FCO’s travel loans. The FCO has advised that there may be some flexibility in repayment timetables for those genuinely committed to repaying, but this fact has not been adequately communicated to the public. While loans must of course be repaid, it is undesirable that people were deterred from taking out loans by the FCO’s warnings that their details would be passed to debt collectors after six months. People needed to be made aware that more flexibility was available. We recommend that the FCO commits to offering loan extensions where people are in genuine financial difficulty. The FCO should also make it clear that, in current circumstances, there may be some flexibility afforded to those who are genuinely struggling to repay. (Paragraph 19) Communication
Government response summary AI-generated
The government describes the availability and publicity of emergency repatriation loans, and confirms the removal of advice to seek crowdfunding. However, it does not directly commit to offering loan extensions for those in financial difficulty or explicitly communicate greater flexibility in repayment terms.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Not Addressed
HM Government · verbatim extract
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 repatriation loan from the government as a last resort. From 5 May the FCDO offered a new subsistence loan to help British nationals 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. Those eligible for a loan must sign an Undertaking to Repay (UTR) in which they agree to repay the loan within six months. Loan recipients are unable to renew their passport until they repay the loan in full. If loan recipients do not repay the loan or agree a repayment plan with the FCDO within six months, their passport may be cancelled, and their details passed to Indesser, a cross government debt management service. The FCDO will always work to agree flexible repayment plans tailored to individual circumstances and this is set out in our public guidance as well as in the documentation, which is issued with all undertaking to repay forms. In the first instance, we will work with an individual to establish what they can afford to pay through a repayment plan. The FCDO takes a case by case approach to debt repayment and understands the difficult circumstances some of customers find themselves in on return to the UK. Our staff will also, where appropriate, put individuals in touch with the National Debt line or other debt advice charities. If an individual is actively trying to repay their debt—i.e. a repayment plan is in place, irrespective of the monthly amount being repaid—we can extend the debt repayment period beyond six months. The FCDO will not cancel the passports or pass the debt to Indesser of those actively seeking to repay their loan. All loans are interest free.
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