Refugees in the UK will face a student loan-style repayment scheme for their living costs under a new law being introduced to Parliament today.
The plans would apply to those who have arrived in the UK seeking asylum and had their claims granted.
If they then go on to earn above a certain threshold after finding work, they will be told to send a proportion to the Home Office as a repayment for support they received while awaiting their decision.
It is understood the government is exploring a flat charge of £10,000, which would not be subject to interest.
Refugees would be required to make the full payment before they became eligible for settled status in the UK, and anyone who leaves the country would need to pay up if they want to return in the future.
The policy, which is included in the new Asylum and Immigration Bill, has been criticised by refugee charities as a ‘tax’ on people fleeing war, torture and persecution.
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Imran Hussein of the Refugee Council said the move was ‘unfair, impractical and [would] make it much harder for families to rebuild their lives and stand on their own feet’.
He said: ‘When somebody is granted refugee status, that should be a moment for them to finally feel safe and supported.
‘Instead, they would now face an unavoidable £10,000 debt, making their road to permanent settlement much more difficult. ‘
Madeleine Sumption, the director of Oxford University’s Migration Observatory, told the Guardian the idea would be likely to raise a ‘relatively small’ amount of money as it would apply to a ‘very low-income population’.
She also warned about other potential impacts, such as ‘discouraging [asylum seekers] from working once they get refugee status because they face a higher effective tax rate’.
Statistics from the Home Office show 60% of asylum seekers who were in employment eight years after their claim was granted were earning minimum wage or less.
Home Secretary Shabana Mahmood said: ‘The cost of asylum accommodation on the British taxpayer is too high.
‘We have already reduced asylum costs by £1,000,000,000, but it is also right that we ask those who can contribute to do so.
‘Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.’
The announcement comes after Mahmood revealed she wanted members of the public to help decide asylum appeals under a magistrate-style system.
She is also due to unveil new safe and legal routes for people seeking asylum to enter the UK, in what may be seen as an effort to appeal to colleagues on the left.
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