Azure Card

Baroness Smith of Basildon Excerpts

Thursday 20th November 2014 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, we should be grateful to the noble Lord, Lord Roberts of Llandudno, for raising this issue. I do not suppose he expected that such a narrowly drafted Motion that we take note of the Azure card would provoke such a wide-ranging debate. It has been helpful. I listened to his speech, which he gave with his customary passion. Initially, I think he was arguing for the abolition of the card, but later in his speech he talked about ways to change or modify it. A number of points came up in the speeches of all noble Lords. I should say at the outset that, like the noble Earl, Lord Listowel, I am grateful for the briefing I received. I thought that the Library Note was particularly helpful and detailed. We should thank those in the Library who prepared it.

I suspect that the subject of this debate would have puzzled most people who may not have heard of the Azure card and may not be aware that there is support for those who have been refused asylum and, for whatever reason, are waiting to return to their country of origin. The noble Earl, Lord Sandwich, asked about the reasons for this. There are cases where for genuine reasons such removal is not immediately possible. Government data show that the numbers are relatively small, but I always think that in cases such as this statistics do not tell you very much, because they do not tell the underlying story. These are people who have been refused asylum in the UK and have exhausted all routes to be allowed to stay in the UK, so there must be exceptional and special reasons why they do not leave and, in some cases, are provided temporarily with state support.

There are therefore different issues to consider, which have come out in the speeches. The first is the principle of whether it is considered appropriate or efficient for there to be a support system for failed asylum seekers that is operated separately from any other system. Secondly, there are the practical implications about whether the system in operation is as efficient and effective as it should or could be. The third issue, which we ranged around slightly, is about process of asylum and whether cases are being dealt with as quickly, and therefore as humanely, as possible.

On the first issue, anyone who seeks asylum in this country and is ultimately refused is expected to return to their country of origin as soon as possible. It is only in exceptional cases that those who have been refused would continue to receive state support—what has become known as Section 4 support, part of which is the Azure card. One of those exceptional circumstances would be that the individuals are seeking judicial review; otherwise, they would have to be destitute and able to prove that they are taking all reasonable steps to leave—

[Earl Attlee]

It is my recollection that if your application for judicial review has been accepted by the courts you go back to Section 95.

[Baroness Smith of Basildon]

That is the case, once applications for judicial review have been accepted, but during the application process they come under Section 4. I am grateful to the noble Earl for helping to clarify that.

As I say, the individuals must be destitute and prove that they are taking all reasonable steps to leave the UK, unless they are medically unable to do so through ill health or if, for other reasons, it is pretty much impossible for them to leave immediately. It is right that in those exceptional circumstances, whether or not someone has a legal right to remain in the UK, we should provide temporary support to ensure that people are not destitute. The key word here is “temporary”, and it is of great concern how long some people have been receiving such Section 4 support. It is hard to imagine the circumstances of those who have been on Section 4 support for more than a year. The noble Earl, Lord Listowel, tried to deal with that issue.

I understand that the average time for which someone receives such support is nine months—sometimes much less. However, the fact that anybody should be in that position for six or more years, as 127 people are at present, is incredible. I suspect that each one of them has very specific reasons, but there is neither the time, and nor is it appropriate, to go into them in this debate. However, I would like the Minister to help me, either today or in writing: what proportion and number of cases receive Section 4 support for one year or less, and for two years or less? The point that I am trying to get to is that the circumstances in which this is long-term support, which was never intended, must be exceptional. The fact that there are 127 people in such exceptional circumstances is alarming and distressing. I would like to know more about the reasons behind the figures.

The whole point of support—including Section 95 support—for those seeking asylum was that it would always be a temporary measure. The issues of delays in the system must be addressed. However, after listening to the debate and from my reading beforehand, I wonder whether those long-term delays should be approached in a completely different way. Delays of five to six years are far too long when we are dealing with Section 4 support.

I come to my second point on whether the Azure card is as efficient and effective as it could be. As we have heard, it is pre-loaded with funds and provided alongside accommodation. It was brought in because of concerns about potential abuse of the voucher system that was then in place, and was intended to be more effective and efficient. The importance of it to those who use it means that it must be efficient. I am grateful to the Red Cross and others who drew attention to a number of problems that they found with the operation and administration of the card. A number of those relate to problems that arise because of delays in people being able to leave the UK, but others relate to the operation of the card itself.

First, there is the issue of limited shops. Clearly, it is an issue if anyone on a limited budget, for whatever reason, is limited to which shops they use. The reasons that cash is not provided is understandable, but it means that those using the cards will pay higher prices for essential items. I listened to the point made about that by the noble Lord, Lord Naseby. I think he said that 85% of the grocery trade is covered. However, that is not the same as 85% of the outlets that are available. Those figures may also predate the fall in profits of the big supermarkets and the rise in the low-cost supermarkets that many people who are not on benefits, but earning a living, are trying to use now to save money; so we would probably find that the figure is not quite as good.

[Lord Naseby]

If I can help the House, Aldi is relevant in the sense that it is quite well distributed around the country. Lidl is relatively tiny and of course, as the noble Baroness knows, all the others are just convenience shops.

[Baroness Smith of Basildon]

They are tiny and they are growing; but convenience shops may be helpful if they are closer to somebody. There are also issues about being able to shop in markets, for example, where prices are lower. For me, the range of shops is an issue, in that if people are limited in the shops they can use, they end up paying higher prices in many cases. The noble Lord, Lord Taylor, recognised this when he told the House in May that:

“There are ongoing discussions with other outlets that may be interested in joining the scheme”.—[Official Report, 14/5/14; col. WA 501.]

It would be very helpful if the noble Baroness could say something about the outcome of those discussions and what progress has been made since May.

The noble Lord, Lord Naseby, also raised the issue of travel, and other noble Lords raised concerns about it. I congratulate him on using his bus pass; I am sure that he is very grateful to the Labour Government for providing it.

I come now to the administrative problems that have been raised. The Government make it clear that the percentage of technical problems is quite small. That is accurate, but when we look at the numbers rather than percentages it gives cause for concern. Some 3,600 unsuccessful transactions were due to technical faults and more than 100,000 because they were not being used in the shops in which they can be used. What happened in those cases—did people go hungry? Is there any follow-up on cards that have failed, for whatever reason, and is there any follow-up from the people administering the scheme where that has happened? We are talking about fewer than 3,000 people who have Azure cards, so it would be interesting to know whether the contract to operate the cards includes any follow-up behaviour when transactions fail.

One further administrative problem is that more transactions were rejected because there being insufficient funds on the card than for any other reason—more than 200,000, which is a lot in terms of the number of people who have Azure cards. Helpfully and properly, there is a helpline, although there are some issues with it. It is operated by Sodexo and it will advise how much is on the card. I am concerned at suggestions that the use of that helpline should be charged for if it is used too often. Given that a transaction can be rejected as quickly for being lp over the limit as for being £5 over the limit, I would have thought we would want people to check the amount available on the card before they go shopping. I would be grateful for the Minister’s comments on that point.

What should concern us all is poor decision-making and the time it takes for asylum and other immigration decisions to be made. I have raised this in your Lordships’ House on many occasions in debates we have had on immigration issues over the last few years. Too often the initial decision has been found to be wrong. In recent years, 50% of appeals in First-tier Tribunal immigration cases fought by the Home Office have been successful, which means that in many cases Home Office decision-making about who can remain in the country has been as accurate as flipping a coin. That is unacceptable and is not fair to anybody. There has to be far greater confidence in the system. There is little doubt that poor-quality decision-making leads to far more appeals because of lack of confidence in the system.

Not only is it wrong in principle to make people wait any longer than necessary for a decision on their application and to have a system so flawed that there is little confidence in that decision when it is first made, there is also a false economy in making poor decisions as the appeal process and the money spent supporting people while that is ongoing and while they await decisions is a significant sum for the taxpayer. Therefore, improving the quality and speed of Home Office decisions has to be a priority. I confirm that that would be a key priority for a Labour Government.

The biggest difference that could be made to help solve some of the difficulties so many asylum seekers face as they try to live their lives waiting for a decision would be to have that decision made as quickly as possible. There are clearly problems in the implementation of the system of people waiting for decisions. The High Court recently found the Home Secretary’s decision to freeze support for asylum seekers to be flawed and made without reference to the evidence available of what support they might need. That kind of mismanagement increases the difficulties and the destitution faced by many and is just not acceptable.

What we need to do to move forward is establish a transparent and robust evidence-based review into the way asylum support rates are calculated to ensure that people are not left destitute and the taxpayer is not unfairly burdened. It seems appropriate for the Azure card to be included in any such review but, ultimately, we need to be more efficient and supportive in removing people when their options to stay in the UK have been exhausted. Obviously, ideally, once their application is refused and their route to staying in the UK has been exhausted, they should leave the country quickly and efficiently. People are waiting far too long for removal, whether voluntary or otherwise. That is a serious problem and is not fair to anybody. Cases where people are unable to stay for exceptional reasons should also be dealt with. I am horrified that people have been on the Azure card system for six years and more. The Azure card should only ever be a stopgap in somebody’s life. Section 4 support was only ever meant to be a short-term, temporary stopgap.

This has been a thoughtful debate. The Minister has been asked a number of questions and I hope that she will address them today.

[Baroness Williams of Trafford (Con)]

My Lords, I thank all noble Lords who have taken part in this debate, particularly my noble friend Lord Roberts who is a very passionate advocate on this subject, as the noble Baroness, Lady Smith, said. I agree with the noble Baroness that this has been a thoughtful debate and, I think, a constructive one.

It is probably best if I set the background to this debate. The Government provide support and assistance to destitute asylum seekers by using the powers in Section 95 of the Immigration and Asylum Act 1999. This type of support generally consists of accommodation and a cash allowance to cover the person’s essential living needs. We provide this assistance to enable us to meet international obligations, most particularly by ensuring that persons seeking asylum, many of whom will, of course, have a genuine case, are not forced to abandon their claims and return to their countries because of destitution.

We do not usually accommodate or otherwise assist failed asylum seekers because in the vast majority of cases they can reasonably be expected to avoid the consequences of destitution by returning to their own countries. However, as an exception, we provide a different type of support under Section 4 of the 1999 Act—many noble Lords have mentioned this—where there is an unavoidable obstacle preventing the person’s immediate departure: for example, if they are too sick to travel or need time to obtain a necessary travel document. The noble Earl, Lord Sandwich, asked why people would be on that type of support. We also provide assistance to failed asylum seekers who have made further submissions relating to their asylum claim which, although found to be without merit in the vast majority of cases, have to be dealt with through a process that takes time. Different types of assistance therefore serve different purposes.

Section 4 assistance consists of accommodation plus a weekly allowance to meet essential living needs. The allowance is provided through the Azure card, which can be used to buy food and other essential items. The value of the allowance is rightly less than the allowances provided to asylum seekers, reflecting the different purposes of the separate support systems. One is aimed at meeting the needs of people still seeking asylum, a substantial number of whom will be granted refugee status and have a long future in the UK. The other offers a temporary fix for people who are not refugees and in nearly all cases need to be making arrangements to go home.

The legislation explicitly rules out cash being provided, as a result of an amendment brought in by the previous Government via the Immigration, Asylum and Nationality Act 2006. This Government have looked at the matter afresh, as a result of the proposed amendments to the Immigration Act passed earlier in the year, but have no plans to change the law. Many noble Lords have touched on this. We need to provide a balance between meeting people’s basic living needs and processing their asylum claims in an efficient and speedy manner. However, we are always looking at ways of improving the operation of the card. Officials talk regularly to voluntary sector providers and partners about how such improvements can be made. As one practical example of this co-operation, we will shortly be bringing in changes to allow card users to carry over extra credit on the card from one week to the next. This suggestion was made by the Red Cross in a recent report and by many noble Lords in the Chamber today and I am pleased to be able to make this announcement. Currently, credit is limited to £5 unless the person has children. The change is designed to enable people to plan how they spend their allowance more effectively.

We are also considering how we can implement sensible suggestions about providing further information about the terms and conditions of the card and clearer information about how to apply for extra assistance that is available to those on Section 4 support; for example, the provision of travel tickets not only to attend essential medical appointments but to undertake other types of necessary travel.

We also look for opportunities to extend the range of outlets that accept the card, although this is ultimately a matter for the particular retailers. In the run-up to this debate, we again approached other retailers such as Aldi and Lidl. They are not willing to have the card at this time. In the round, the Azure card is essentially a pre-paid debit card that can be used at most of the main UK supermarket chains. It serves substantially the same purpose as other debit cards used by shoppers. The Government are satisfied that it is an effective means of ensuring that those on Section 4 support are able to buy food and other items to meet their living needs. It is a shame that other outlets will not accept the card. I do not think that there is an impediment to their accepting the card. My noble friend Lord Roberts and I have spoken about this. Ultimately, a bit more of a push might be needed from voluntary organisations—indeed, from Members of your Lordships’ House—to encourage them to do so.

I turn to points made by noble Lords in the debate. My noble friend Lord Roberts brought up a number of points, the first being on the thanks that we owe to the voluntary organisations that provide different types of support not just to failed asylum seekers but to asylum seekers generally. I echo my noble friend’s comments. Without the voluntary sector, this country would be a poorer place in all sorts of ways. He talked about the Red Cross survey, which should probably be seen in context in that it sampled only 11 people. I am not decrying any of its findings, but the sample was quite limited. He and other noble Lords talked about travel to legal offices or health services. All asylum seekers, or failed asylum seekers under Section 4 support, are always housed within two to three miles of shops. However, I take on board a comment made by the right reverend Prelate about somebody living next door to a shop that they cannot actually use. That was a good point and additional pressure needs to be put on those shops to be a bit more accommodating. I have no reason to believe that they cannot accept the card.

My noble friend talked about replacing the card with cash. This goes back to the point about striking the right balance between processing claims quickly and not having a system that incentivises new claims that might not have been made were it not for an easier system. I am not saying we should make the system difficult for people, but we should try to prevent encouraging new claims. He talked about dignity, mental health, and so on, and the noble Earl, Lord Listowel, talked about the anxious effect on families. I cannot disagree that somebody with a family who not only sought asylum but had the claim refused must be in a state of extreme anxiety. The noble Earl mentioned a pregnant woman, for example, and the effect on foetal health must be extreme. Again, that goes back to needing to process claims quickly—70% of appeals are processed within six months. However, that does not undermine the figures for the people who stay here for more than a year, and as the noble Baroness said, sometimes up to six years.

The noble Baroness, Lady Smith, asked about the number of people on support for under a year. That figure is 684. I will come back to her on the two-year figure, which she asked for, but the number of those on support for more than a year and fewer than five years is 3,013. There is no doubt that the system needs to be speeded up. The speedier it is, the less anxiety will be caused to families.

My noble friend Lord Roberts also asked about the administrative costs of the card. It is not hugely expensive; it is about £200,000 per year, and there is a helpline. I was shocked to hear—I think I heard it right—that overuse of the helpline could lead to charges. I am happy to be corrected on that.

[Baroness Smith of Basildon]

No, that was in the note prepared by the House of Lords Library. The Asylum Support Appeals Project reported that and that is something that has to be looked at.

[Baroness Williams of Trafford]

I would be happy to come back to the noble Baroness on that, because it is a good idea for people to want to know exactly where they are up to in terms of their credit limits, just as we may want to know where we are up to on our bank accounts.

The noble Earl, Lord Sandwich, asked why people are here. I hope that I have explained the reasons why people would be on Section 4 support. My noble friend Lord Attlee spoke about the contribution of immigrants to this country. When we talk about immigration now, we often talk about it almost as a scourge. However, this country is a nation of immigrants and, speaking as an immigrant, I can say that many of us have contributed both to the economy of this country and to its cultural richness. Nevertheless, we have to get it right in terms of people who are coming to contribute to the economy and those who, as my noble friend pointed out, will risk their lives to come here for reasons other than work.

My noble friend also asked whether the Government would reconsider the level of payments on the card. I understand that the Government reconsider this every year, and at this point we do not intend to increase the level. I also take the point made by the noble Baroness, Lady Smith, about the High Court ruling, and I will write to her and to my noble friend on that subject, in terms of the level of the payment, and put a copy in the Library.

The noble Earl, Lord Listowel, asked about the numbers on Section 4 support. The numbers are about 5,000, and 70% of the claims are processed within six months. Of course, that means that 30% of claims are not processed within six months.

[Baroness Smith of Basildon]

The noble Baroness says that 70% of the claims are processed. Does she mean that 70% of the applications received the money in that time, or for that time?

[Baroness Williams of Trafford]

When a claimant is appealing a failed claim, they will be paid during the time of their appeal—yes. I hope that that answers the noble Baroness’s question.

The noble Earl also talked about the cost to families in terms of dignity, and the stigma of being not just an asylum seeker but a failed asylum seeker. I have to concur with that. Again, the more quickly we can process the claims, the better. There is also the travel issue, which I think I have already addressed.

The right reverend Prelate the Bishop of Worcester said that the card can be used only in certain outlets. Again, I hope I have addressed that point by explaining that the card can be used only in outlets that wish to accept it. The right reverend Prelate talked about someone living next door to a shop but not being able to use the card in it. He also talked about allowing flexible use of the Azure card or abolishing it. The Government have no intention of abolishing the card, but I agree that if markets, or any other retail outlets, were more willing to accept it, that would make the process easier and more dignified for all involved.

My noble friend Lord Naseby asked what happens if a card is refused. My understanding is that it will be replaced, or vouchers will be provided immediately. Obviously, there is a helpline to ring. I do not think that anybody would be left hungry because of a failure of the card. He also asked about carryover, and I am pleased to say that carryover would now be allowed without restrictions. He also talked about the range of supermarkets—I think I have gone through that—and about transport. We are continuing to look at where transport arrangements can be more flexible. Certainly, someone on Section 4 support can apply for travel tickets to see a doctor, to go to the Home Office or to access legal support. My noble friend said that the UK was a most generous country. That is true. We pride ourselves on our democracy and our rule of law, on our compassion and on how we treat asylum claimants. But obviously there remain some efficiencies to be derived in the asylum system where claims have failed.

I think that I have addressed all noble Lords’ points. I hope that I have addressed those made by the noble Baroness, Lady Smith, sometimes by weaving them in to my responses to various other noble Lords. She said that anyone going through an appeal is on Section 4 support, and that is absolutely correct; I think that was in response to a point made by my noble friend Lord Attlee.

[Baroness Smith of Basildon]

My understanding is that Section 4 support comes after somebody has exhausted the appeals system.

[Baroness Williams of Trafford]

They are appealing against their failed application; it is during the appeal process, I understand. I will write to the noble Baroness, because I am not sure that she is satisfied. It is when an asylum seeker has had their asylum claim rejected and is appealing against that.

I shall now conclude, because my time is up. I will check whether there is anybody whose questions I have not answered sufficiently, and if so I will write to them in due course.