Recommendation 26

HM Government Accepted

The high intake of young people in recent years, particularly because of small boats crossings, has placed unprecedented pressures on the National Transfer Scheme (NTS) and children’s services in local authorities throughout the UK. As a result, and out of necessity with the children’s best interests in mind, some children remain in hotels for the shortest period practicable whilst placements with local authorities are vigorously pursued. The Government is very grateful for the support from many local authorities who stepped up and provided crucial placements to vulnerable young asylum-seekers under the NTS. However, despite making substantial changes to the voluntary NTS in the summer of 2021, the scheme could not respond to the scale of intake into the asylum system. A national response and participation from a greater number of local authorities was required and, therefore, the Government took the unprecedented step to mandate the NTS. Since 15 February 2022, all local authorities with children’s services in the UK are directed to participate in the NTS. This means they are required to accept transfers of UASC into their care, providing crucial placements to these children. The Home Office considers a number of factors when transferring children to a local authority including the existing child population, the number of supported asylum seekers, pressures on children’s services, and the best interests of the child. Although the decision to move to a directed NTS has contributed to the scheme’s strongest sustained performance to date, the extremely high intake of UASC means the situation remains extremely challenging. This is why our continued work to end the use of hotels for accommodating all arrivals, and to ensure these young people receive the care placements they are entitled to, is so critical. Working alongside the Department for Education and the Department for Levelling Up, Housing and Communities, the Home Office continues to consider further opportunities to increase the support we provide to the NTS and local authorities. Last year, we provided £20 million of additional funding to local authorities following a joint Department of Education and Home Office consultation. We extended the higher funding contribution rate of £143 per night in relation to a child transferred through the NTS, increased the contribution rate for supporting former UASC care leavers to £270 per week and invited local authorities to bid into a one-off pot of £3m for exceptional costs experienced supporting UASC during financial year 2021/22 with 50 local authorities being awarded funding. On 24 August 2022, the then Minister for Safe and Legal Migration wrote to all UK local authorities and devolved equivalents with children’s services announcing changes to the NTS. The changes were applied with immediate effect and include; increasing the threshold up to which councils have to accept UASC into their care from the previous level of 0.07% to 0.1% of their general child population, halving the transfer deadline to five working-days for all UASC not currently in the care of a local authority, and for UASC awaiting transfer into local authority care from hotels councils will receive an additional £2000 per child per month for 3 months where a transfer takes place within 5 working days. It is difficult to project the precise number of expected UASC arrivals going into the autumn and winter months, which saw the highest number of arrivals in 2021. However, we will continue to do all we can to ensure the NTS works effectively, and that we end the use of hotels for asylum seekers in general, and UASC as a particular priority, as soon as possible.