No Recourse to Public Funds

Lord Cryer Excerpts

Thursday 8th October 2020 Westminster Hall

[John Cryer (Leyton and Wanstead) (Lab)]

I congratulate my right hon. Friend the Member for East Ham (Stephen Timms), my constituency neighbour, on securing the debate. I will be brief, because I have no choice.

I have been dealing with the consequences of this policy since I was elected as the MP for Leyton and Wanstead a decade ago, and during that time the situation has become much worse than I remember in my early days. Like my right hon. Friend’s constituency, Leyton and Wanstead is one of the most diverse constituencies in the country. That means that I have a very high proportion of migrant constituents. That means that I have a very high proportion of people with no recourse to public funds, and the situation will undoubtedly get worse because of the consequences of covid. I will say more about that in a minute.

Even before covid, almost half of all children with foreign-born parents living in Britain were living below the poverty line. That is 100,000 children. Again, a lot of that is because of no recourse to public funds. As the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) mentioned, councils are clearly dealing with an awful lot of the consequences—for which they are ill prepared because of the financial cutbacks over the last decade—through social services, because of course social services are not designated as a public fund. The hon. Gentleman mentioned £44 million a year. The last figure that I saw, for 2018-19, was nearer £48 million. We do not have the figures for the period with the virus, but we can guess that, after covid, the figure will be much higher than £48 million. We can only guess at the moment how much it will be. As the previous speaker said, there is a cost shunt. That does not involve any saving to the taxpayer, because the taxpayer is still paying for the consequences of what is a pretty disreputable policy.

Legally, court cases are very difficult. Court cases are now slightly easier to bring than they were. At one point—my right hon. Friend mentioned this—someone had to be actually in destitution before they could bring a court case. Now, someone can bring a court case when they are facing destitution. However, it is still pretty desperate stuff when someone is facing destitution. Only then can someone bring a court case and try to overturn the decision, but overturning the decision is very rare and very complicated, and it is very difficult to find legal specialists who can take on those sorts of cases.

I will give just two brief examples from my constituency that illustrate the effects of no recourse. The first involves a woman separated from her husband and stuck in one-bedroom accommodation with three children, one of whom is autistic. Following the break-up of her relationship, she applied to the Home Office for a change of circumstance, but the form asked for details of her legal representative. She had no legal representative, so she could not complete the form and could not change her circumstance. The second is the case of a woman threatened with homelessness because of rent arrears and unable to approach the council for emergency accommodation. She was working in a betting shop in Leyton, but of course on minimum wage and therefore very low paid. She was unable to meet the rent and fell into arrears, and children’s services could not assist because she was not considered destitute. That brings me on to working conditions.

With covid, a very high proportion of migrants who face having no recourse to public funds will have been on, and in some cases still are on, zero-hours contracts, so their employers have no real incentive to furlough them. There is no real mechanism for furloughing them. From one day to the next, they go from being employed to not being employed—literally overnight. They are then in the position of having no recourse to public funds and rapidly facing destitution.

I agree with my right hon. Friend the Member for East Ham. We live in the sixth biggest economy in the world, and the notion that we have tens of thousands of people facing destitution is disgraceful. What is also disgraceful is that the Prime Minister, apparently, is blissfully unaware of the situation out there, despite the fact that he is a London MP.