Trust for London report says 37,000 migrant households in London live in poverty and 120,000 households are “at risk of destitution”, reports Noah Vickers, Local Democracy Reporter

Renter looking out of a window — credit Dylan Ferreira credit Unsplash

Almost 37,000 migrant households in London are living in poverty as they are not entitled to benefits, a new report has warned.

The research, published by the Trust for London, found that a further 120,000 such households are “at risk of destitution”.

The people and families in question are all impacted by the government’s ‘No Recourse to Public Funds’ (NRPF) rule – a restriction which prevents migrants with particular visa statuses from accessing universal credit and other types of welfare support.

The trust argues that the restrictions should be loosened in particular circumstances, as they are “both cruel and ineffective”. While “the principle of limited access to public funds for migrants” should be maintained, the charity says that support should be “provided more frequently and more easily to those who need it and to those actively encouraged to work in the UK”.

NRPF restrictions currently apply to most migrants staying in the UK on temporary visas, and to all asylum seekers and those who have entered the UK illegally.

According to the trust, those at risk of poverty due to the restriction include essential workers, particularly those who have been accepted into the UK on a work visa with a reduced minimum income requirement because they are fulfilling roles where there is a shortage of skills or labour supply.

The trust’s new report, produced by the Centre for Social Policy Studies think tank, also found that NRPF “affects women more than it does men”.

An example of this is that NRPF “makes women more susceptible to sustained abuse, as they cannot access domestic violence services,” because “women who are accommodated in domestic violence services and refuge centres have to pay rent, which is often funded through public funds, such as housing benefit”.

In addition, British children whose parents have an NRPF condition on their visa have found it harder to go university, even if they have been to school in the UK. NRPF has also reduced the economic contribution of migrants “by denying access to support services that could make it easier for them to get straight back to work if they do lose their jobs”, the report claims.

Alex Sutton, director of grants at the trust, said: “It is astonishing that over two million people living and working in our communities, including people providing essential services such as social care, do not have equal access to the same safety net that the rest of us can rely on when we need it most.

“The use of NRPF traps many of the people our society relies on – especially in London – in poverty. And it damages the life chances and health of the thousands of children affected.

“The moral argument to end NRPF is clear – but it makes economic sense too. Far from saving the taxpayer money, it simply passes the burden onto already overburdened local authorities, who have a responsibility to help those in need. It is also self-defeating, barring people from accessing free childcare which prevents them from taking on additional hours at work.

“The NRPF condition is both cruel and ineffective in its stated aims. Allowing people living and working in our communities access to support when they need it ensures people do not become destitute with no way out. It is a critical first step towards a system that is fairer for everyone.”

The trust concludes that “there is an evidence-based case for limited increases in eligibility for some benefits and/or public support” for people currently affected by NRPF.

It says that guardians who are resident in the UK should be allowed to apply for a “change of conditions and/or access to specific public funds on behalf of eligible children, irrespective of the parents’ visa restrictions”.

This would change the current “unfair situation” which “discriminates between British children of migrant families in comparison with equivalent British children in their classroom”, it said.

The trust also argues that migrants who have come to the UK with work visas on the ‘shortage occupation list’ should be allowed to access public funds, as they are being “actively encouraged to enter the UK, based on our need for their skills and contribution, yet we do not reciprocate in terms of our support for them”.

The Department for Work and Pensions did not respond to a request for comment.

According to the House of Commons Library, the government does not know how many people have no recourse to public funds, which is partly because the total includes unauthorised migrants, but also because no central record has been kept of how many visas are issued with NRPF.

However, around 3.3 million people across the UK held visas that would usually have an NRPF condition at the end of 2023.

Furthermore, as of June 2024, there were around 225,000 people in various stages of the asylum system, who are also covered by the restriction. They instead receive a small amount of money to cover their essentials, though this can be as little as £8.86 per week if their state-funded accommodation provides free meals.

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