Azure Card

Baroness Williams of Trafford Excerpts

Thursday 20th November 2014 Lords Chamber

[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.