Recommendation 15

HM Government · verbatim extract Rejected

Government Response In relation to the recommendations at paragraphs 110 and 111, our position remains that Universal Credit is not set according to the “essential living needs” test but to ‘help with basic living costs’. UC generally covers a broader range of costs, including paying for utilities and expenses incurred in looking for work, such as travel. Most supported asylum seekers are provided with free, furnished accommodation with no utility bills or Council Tax to pay and are ineligible to work. There are also individuals accommodated in catered accommodation, where a number of other essential living needs are provided for them, such as food. For these reasons, we do not consider that aligning asylum support allowances with a set proportion of the level of universal credit is appropriate. We annually review the level of the asylum support rate to assess the correct level of financial support that should be provided to meet essential living needs. In December 2022, we increased the support rates to £45 for individuals in self-catered accommodation and £9.10 for individuals in catered accommodation in line with the September 2022 CPI figure. Since January 2023, we have been working on this year’s review, which is due to conclude later this year. However, in the interim, prices have continued to rise and evidence (which consists of the CPI rate and other inflation reporting) has shown that there has been a marked increase in the costs of essential living items. Therefore, as of 17 July, the weekly level of allowance increased for asylum-seekers who would otherwise be destitute from £45 to £47.39 in line with CPI from September 2022 to April 2023. This increase is on an interim basis for each supported person (i.e., the individual supported under section 95 or section 4(2) of the 1999 Act and any dependants in their household) in self-catered accommodation. For individuals in catered accommodation, the standard weekly level of the allowance will be proportionately increased from £9.10 to £9.58 for each supported person. For women in catered accommodation, feminine hygiene products are provided by the accommodation provider, as set out in the Asylum Accommodation and Support Contracts (AASC). For women in self-catered accommodation, we are content that the current rate of support is sufficient enough to allow individuals to meet their essential living needs.