Report on review of weekly allowances paid to asylum seekers and failed asylum seekers: 2023

Question 1

Introduction

Accepted Answer

The Home Office has a legal obligation under the Immigration and Asylum Act 1999 to ensure that supported individuals are able to meet their essential living needs. We fulfil this obligation by providing supported individuals accommodation and/or a weekly, per person, subsistence payment. The level of subsistence payments is reviewed annually.

As part of the 2023 review of the level of subsistence payments, we also reviewed the level of the weekly additional payments for pregnant women and young children, as well as the level of the maternity grant. The outcomes of the review are as follows:

the main rate of asylum support for individuals in self catered accommodation is increased from £47.39 to £49.18
the main rate of asylum support for individuals in catered accommodation is reduced from £9.58 to £8.86
the rate for individuals in hospital is aligned with the catered accommodation rate, reducing the weekly payment from £10 to £8.86
the level of the weekly additional payments for pregnant women and young children are amended as below:
- from £3 to £5.25 for pregnant women
- from £5 to £9.50 for babies under 1
- from £3 to £5.25 for children aged 1 and 2
- from £0 to £5.25 for children aged 3
the level of the 1999 Act section 4 maternity payment is increased from £250 to £300 to align with the 1999 Act section 95 maternity payment
the time period in which pregnant and new mothers can apply for maternity payments is extended to 11 weeks before the expected due date, and 6 months after birth

This report outlines how the Home Office reached these outcomes. Amendments to relevant legislation reflecting these outcomes came into force on the 15 January 2024^{[footnote 1]}^{[footnote 2]}.

Question 2

Stakeholder engagement

Accepted Answer

As part of the review process, an engagement exercise took place inviting comments and views from key stakeholders, including NGOs and Strategic Migration Partnerships (SMPs). Twenty-five responses were received and some of the key recommendations and suggestions were as follows:

Main rates:

set the rates to align with at least 70% of mainstream benefits
essential living needs to include religious, social and cultural participation
one-off payments for clothing when granted support and/or for winter

Maternity payments and additional payments for pregnant women and young children:

increase additional payment rates at least in line with DHSC’s Healthy Start scheme
increase the maternity rate in line with inflation
align the section 4 rate with the section 95 rate
increase the window in which the maternity payment is paid

We have previously responded to the recommendation to align rates with 70% of mainstream benefits. The purpose of the asylum support payment is to ensure that individuals are not left destitute whilst their asylum claims, and any appeals, are under consideration. Fully furnished accommodation, with utilities such as gas, electricity and water, are also provided in addition to the weekly support payment. Universal Credit and other benefit payments are provided for different purposes and are intended to cover a broader range of costs. They are also usually uplifted in line with CPI and we have set out the limitations of using CPI rates to amend support rates within this report.

Regarding the request to include religious, social and cultural participation, and making a one off payment for clothing, we consider that current provisions are sufficient to ensure individuals are able to meet their living needs, and therefore, no changes have been made in this regard.

On suggestions regarding additional and maternity payments, as set out in this report, additional payments have been set in line with Healthy Start payments, and we have aligned the section 4 maternity payment with the level of the section 95 payments. Increasing the maternity rate in line with inflation would be inappropriate, as there isn’t a set basket of goods the payment is for, and using general inflation figures such as CPI would be inappropriate as it would not accurately reflect the price changes in the general items the payment is intended for – ie. costs related to caring for a newborn baby.

Question 3

Main rates

Accepted Answer

Overview

From 2014 to 2020, asylum support rates were set using the Home Office’s own assessment methodology. The methodology involved assessing the cost of identified essential needs for the average able bodied asylum seeker which are not covered through other arrangements using market research and Office of National Statistics (ONS) survey data. Full details of items that are considered essential can be found at annex A.

In 2021, the Home Office moved away from this methodology in assessing the cost of needs deemed essential and uplifted them in line with the Consumer Price Index (CPI)^{[footnote 3]}. Each rate amendment since then has been made in line with CPI rates. The rates were last amended on an interim basis in July 2023 pending the outcome of this review in recognition of the marked increase in the costs of essential living items. Rates were increased by 5.3% (based on CPI from Sept 22 to April 23^{[footnote 4]}, from £45 to £47.39 and from £9.10 to £9.58 for individuals in self-catered accommodation and catered accommodation respectively.

Whilst undertaking the 2023 review, we have determined that CPI is not a wholly accurate measure of amending rates as it is calculated using a basket of goods designed to represent the ‘average’ UK household, and therefore is unlikely to accurately reflect the true change in costs experienced by asylum seekers in meeting their essential living needs. CPI includes household services (including energy), which are provided by the Home Office outside of support payments, as well as ‘non-essential’ goods and services, such as alcohol, tobacco, restaurants, and hotels, which are not intended to be covered by support payments.

Therefore, we have developed a bespoke methodology to determine the appropriate weekly subsistence rates for individuals on asylum support. The methodology takes a slightly different approach in quantifying changes in the cost of each of the essential needs categories:

food costs have been determined using ONS’s Living Costs and Food (LCF) survey, and a subcategory of CPI (food and non-alcoholic drinks) has been used to uplift to September 2023 prices
for non-food categories of need, such as clothing or travel, the base rate is taken from the 2020 review^{[footnote 5]} and subcategories of CPI (e.g. communications), or bespoke categories using item-level data (e.g. bus fares), are used to identify price changes up until September 2023

Where sub division, or COICOP^{[footnote 6]} (as referred to by the ONS), CPI rates are used, it is on the basis that recipients experience inflation for that category of goods in the same way as the ‘average’ UK household. While there are limitations to this assumption, COICOP CPI rates are the best available indicator to measure changes in the price of goods across this category of need from the initial baseline cost.

The methodology is confined to focussing only on how asylum support payments should be adjusted to ensure they reflect changes in the price of a pre-determined set of goods and services in the baseline. Given that the base rates for non food categories come from the 2020 review, we have also reviewed the methodology in how those figures were determined.

The following sections go into further detail into how the cost of each essential needs category has been determined using this methodology.

Food and non alcoholic drinks

Previous approach to food baseline costs:

The 2020 asylum support rate review calculated baseline food costs using food expenditure for the lowest 10% of households by income, divided by the average household size of this decile to estimate expenditure for a single person.^{[footnote 7]} However, survey results for the lowest and top 10% of households by income are particularly sensitive to sampling errors and income measurement problems and are therefore more volatile and difficult to interpret relative to other deciles. Additionally, the division of total expenditure by average household size meant this estimate was sensitive to changes in household sizes.

ONS survey data records expenditure on food eaten away from home (as well as takeaway food eaten at home) separately from shop bought food and drink. Expenditure on food eaten away from home is not judged to be essential, but by not capturing this, total food expenditure for survey respondents risks being underestimated. The previous methodology increased costs by 5% (1/20) to account for one takeaway or meal eaten away from home per week. This was to allow for additional shop bought food to be acquired to cover the extra meal per week, termed the ‘missing meals fix’. In the absence of specific data or evidence to inform this, the adjustment was based on judgement.

Updated approach to baseline food costs:

To improve the robustness of baseline food costs, 3 key changes have been made in this methodology relating to the use of LCF survey data:

The lowest quintile (20%) by household income is now used to estimate household food, therefore improving confidence intervals relative to the lowest decile (10%) by expanding on sample size.
Household expenditure is now taken using expenditure of one adult non-retired household by disposable equivalised income. ^{[footnote 8]} This removes the sensitivity of ‘per person’ average food costs to changes in the size and composition of households and ensures essential food costs are met for single-person groups in receipt of section 95 support payments. Multiple-person households are more likely to benefit from economies of scale,^{[footnote 9]} meaning average per person costs would likely be lower relative to a single-person household.
No ‘missing meals fix’ has been made. LCF food and non-alcoholic drinks expenditure includes products classed by the ONS as ‘discretionary’ and therefore not essential. These include soft drinks, juices, chocolates, and confectionary.^{[footnote 10]} Therefore, this expenditure is judged to be sufficient in meeting the essential living needs of recipients in the absence of a missing meals fix.^{[footnote 11]}

Using this approach, the figure for food costs as of March 2022 are estimated to be £28.40 per person per week^{[footnote 12]}. To adjust to September 2023 prices, COICOP CPI rates^{[footnote 13]} for food and non-alcoholic beverages are used.^{[footnote 14]} This results in the figure for food costs to be estimated at £34.86 per person per week.

Clothing

COICOP CPI rates have been used to assess the change in the cost of clothing from October 2020 to September 2023 prices. This is judged to be the best available indicator of price changes. This results in the amount assessed to meet the clothing costs is £3.43 per person per week.

The Home Office research used to calculate the 2020 rate has been reviewed to consider whether any assumptions or conclusions made are still accurate. The assessment of what is considered an essential need in terms of clothing can be found at annex A. We do not consider that this has changed. We also consider that the research to determine the 2020 cost remains valid, and therefore, we do not consider any further considerations need to be made regarding the cost of clothing needs.

Communications

COICOP CPI rates have been used to assess the change in the cost of communications from October 2020 to September 2023 prices. This is judged to be the best available indicator of price changes. This results in the amount assessed to meet communication costs is £4 per person per week.

The Home Office research used to calculate the 2020 rate has been reviewed to consider whether any assumptions or conclusions made are still accurate. The assessment of what goods are considered an essential need in terms of communications can be found at annex A. We do not consider that any items should be added to this list. We also consider that the research to determine the 2020 cost remains valid, and therefore, we do not consider any further considerations need to be made regarding the cost of communication needs.

Travel

To assess the change in the costs of travel since 2020, we have used an item-level approach to track changes in the price of bus fares. October 2020 is used as the index month, and from this, the percentage change in price to September 2023 is calculated. The specific items are appropriately weighted (using the same methodology as the ONS when calculating CPI^{[footnote 15]} to calculate an overall price change for each relevant category of need. This results in the amount assessed to meet the travel costs is £4.96 per week.

Whilst travel does exist as an individual COICOP of CPI, this is judged to be too general a measure to capture travel costs for section 95 recipients. This is because support payments are designed to cover the cost of at least one return bus fare a week, and the CPI COICOP captures a range of methods of transport which are not considered to be relevant to meeting the essential living needs of recipients (including air travel and private vehicle costs).

The Home Office research used to calculate the 2020 rate has been reviewed to consider whether any assumptions or conclusions made are still accurate. The allowance for travel was set at one return bus journey per week and we consider that this remains appropriate in individuals being able to meet their essential needs.

Research from 2020 concluded that £4.70 per week would generally cover the cost of at least one weekly return journey in most UK cities and towns across the UK and that this was sufficient to meet the needs of asylum seekers. The research looked at bus fares in 25 cities that made up 70% of the supported population. Using internal population data from September 2023, the 25 cities used in the 2020 research now amount to just over 50% of the population so it may not be appropriate to use the 2020 base figure. We therefore undertook market research to understand the cost of bus fares across the UK. This can be found at annex B. Our research found that the proposed rate of £4.96 per week is sufficient to cover the cost at least of 2 x single journeys or a return journey in all but one of the researched locations. However, in that location, multiple tickets can be bought which brings the costs of 2 x single tickets below £4.96, and single bus fares may be able to be obtained for cheaper by buying on the bus and depending on the planned destination. Therefore, we are content that the proposed amount of £4.96 does not need to be adjusted.

Toiletries and non-prescription medicines

To assess the change in the cost of toiletries and non-prescription medicines, a more granular method is also taken. CPI COICOPs are not adequately specific to capture toiletries, non-prescription medicines, and laundry/toilet paper categories of needs. Therefore, the items within these categories that have been assessed as essential needs have been mapped against item-level indices data, published by the ONS, to track changes in the price of these goods from October 2020 to September 2023. This results in the amount determined to meet toiletries, laundry and non-prescription medicines essential needs to be £1.81 a week.

The Home Office research used to calculate the 2020 rate has been reviewed to consider whether any assumptions or conclusions made are still accurate.

Non-prescription medicines

We have determined that plasters should be added as an essential item under this category, as reflected in our market research (annex B). We consider that apart from this, the conclusions from 2020 review still stand.

Toiletries and laundry

We have determined that the current provision for feminine hygiene products is too low and suggest this is increased by 2 packs per year. This equates to a cost of £0.04 per week according to our market research at annex B. We have also included nail clippers as an essential need. This would cost £0.05 per week according to our market research. Above this, we consider that the conclusions from 2020 still stand.

The adjustments total an additional amount of £0.09 per week for toiletries and £0.03 per week for non-prescription medicines should be added to the allowance to meet the cost of these essential needs. This results in the weekly rate of £0.80 for toiletries and £0.44 for non-prescription medicines being adjusted to £0.89 and £0.47.

Results

The methodology set out means that the main rates of asylum support are totalled at £49.18 for individuals in self catered accommodation and £8.86 for individuals in catered accommodation. A breakdown can be found below.

Category	Self-catered rate	Catered rate
Food and non-alcoholic drinks	£34.86	n/a
Clothing and footwear	£3.43	£3.43
Communications	£4	n/a
Toiletries	£0.89	n/a
Non-prescription medicines	£0.47	£0.47
Laundry/toilet paper	£0.57	n/a
Travel	£4.96	£4.96
Total	£49.18	£8.86

Annex C provides further detail on the key assumptions and caveats associated with the updated approach in accounting for changes in the price of essential goods included in the 2020 review, as well as updated food costs from the LCF survey, from their initial base prices to September 2023 prices.

Families and children

In catered accommodation, provisions “in kind” are in place for some of the additional needs that families may have. For example, formula milk, nappies and toiletries are provided to those in catered accommodation. For those in self-catered accommodation, children receive the full rate of asylum support which is calculated for an average single adult. The 2020 review concluded that many essential requirements for adults (for example the need to communicate with friends and families overseas) do not apply in equal measure to their children, particularly if they are very young. It also concluded that any extra costs in some households of meeting particular needs (e.g. clothes for teenagers, cleaning products etc) are comfortably offset by the availability of economies of scale that mean other costs per person in the household fall. By applying a flat rate per person in a household, all families, regardless of their size and composition, would have sufficient money to cover their full essential living needs. We consider that these conclusions still stand.

Exceptional needs

The asylum support rates are calculated for the average able bodied adult asylum seeker. Where individuals can show they have exceptional needs in order to be able to meet their essential needs they can apply for additional funds.

Hospital rate

A supported asylum seeker who is hospitalised (for more than 7 days) previously received a reduced rate of support of £10. As part of the 2023 review, we have aligned the hospital rate with the catered accommodation rate as our research has established that for those in hospital the cost of identified essential needs not being met elsewhere (clothing, comms and toiletries) totals to a similar amount to that of the catered rate.

Question 4

Additional payments for pregnant women and young children

Accepted Answer

Overview

Supported women who are pregnant and children under the age of 3 are eligible for additional payments on top of the main subsistence rate under Regulation 10(a) of the Asylum Support Regulations 2000^{[footnote 16]} (for those on section 95 support) and the Regulation 7 of the Immigration and Asylum (Provision of Services or Facilities) regulations 2007 (for those on section 4(2) support)^{[footnote 17]}. Pregnant women and young children aged one and 2 each receive an additional £3 per week and babies under the age of one receive an additional £5 per week. The amount of these payments has not been increased since their implementation in 2003.

Supported pregnant women can apply for the payments from as soon as they have credible confirmation of pregnancy, such as MAT B1 form, a letter from a Community Midwife or a letter from a GP. Once proof of birth has been submitted, the payments will stop and the additional payments for babies begin. Payments will then automatically decrease on the baby’s first birthday and will end on the child’s third birthday if they remain on support. For newly arrived individuals, payments will begin as soon as eligibility is confirmed. Full details on how to apply can be found in the ‘Asylum Support Policy Bulletin Instructions’^{[footnote 18]}.

The original intent of the additional funding was to allow supported eligible asylum seekers to buy healthy food similar to the provisions of the ‘Welfare Foods scheme’, which provided for pregnant women and babies to have access to a specified amount of milk, dried milk, or concentrated orange juice and vitamins for those on income support. The Welfare Foods scheme was replaced by the Healthy Start scheme^{[footnote 19]} in 2006, which remains in place in England, Wales and Northern Ireland to help eligible individuals buy healthy food and milk. Scotland has its own equivalent scheme called the Best Start Foods scheme^{[footnote 20]}. The additional payments for asylum seekers have never exactly aligned with the similar schemes for those on mainstream benefits, in terms of their respective value, how they can be spent or the criteria for who is eligible.

Until now, the additional payments have not been explicitly reviewed. However, in reviews of the main support rates in 2016, 2017 and 2020, the additional rates were implicitly reviewed. These reviews looked at these payments alongside the main rate payments, to determine whether essential needs were met. They concluded that the overall rate covered the essential needs of those who are eligible for the payments, and where it did not in cases that were marginal, the additional payments meant that essential needs could be met. Where it was deemed that the main rate met essential needs without the additional payments, the payments were kept as an important safety net. Therefore, the rate of these payments has never been uplifted.

Court judgement: HA & SXK

In August 2023, individuals in catered accommodation, such as hotels, on section 95 or section 4 support also became eligible for these payments. Before this, it was understood that Asylum Accommodation and Support Contract (AASC) providers met the extra nutritional requirements for those individuals in catered accommodation through the food and drink provided on sites, i.e., “in kind” and that this was permitted under regulations. However, following the case of HA & SXK^{[footnote 21]}, in which the Court held that Regulation 10(a) required the provision of the additional payments, the additional payments are now paid in all accommodation sites to those who are eligible. The court found that the Home Office was not permitted to discharge the obligation under Regulation 10A by provision of support “in kind”, but even if she were, the evidence available did not show that the provision made in the cases was sufficient to meet the Regulation 10A obligation.

Section 55 of the Borders, Citizenship and Immigration Act 2009

Section 55 of the Borders, Citizenship and Immigration Act 2009 requires the Home Office to carry out its existing functions in a way that considers the need to safeguard and promote the welfare of children in the UK. The Home Office instruction ‘Every Child Matters; Change for Children’^{[footnote 22]} sets out the key principles to consider in all relevant activities.

Review

To review these payments, we looked at the nutritional needs of those eligible to the payments (pregnant women and children under 3) to identify whether they have any additional needs above that of an average adult.

Pregnant women

The NHS advises that a pregnant woman does not need to go on a special diet during pregnancy, or need to ‘eat for 2’, but that it is important to eat a variety of different foods every day to get the right balance of nutrients that she and her baby need^{[footnote 23]}. The NHS also recommends that pregnant women take a folic acid supplement as well as a vitamin D supplement. In the final 3 months of a pregnancy, it is advised a woman needs an extra 200 calories a day^{[footnote 24]}.

Breastfeeding mothers

Advice on what to eat when breastfeeding can be found on the NHS website^{[footnote 25]}. In summary, a special diet is not needed, just a well-balanced, varied diet. A breastfeeding mother will use more energy and therefore may need extra calories to compensate. Some studies suggest an extra 300-500 calories might be needed a day^{[footnote 26]}. It is also recommended that a breastfeeding mother takes a daily vitamin D supplement. A woman is entitled to free NHS prescriptions for 12 months after their baby is born where a valid maternity exemption certificate is shown to prove entitlement.

Babies under 1

Nutritional advice for babies can also be found on the NHS website^{[footnote 27]}. A summary is below:

Breast milk or first infant formula provide the energy and nutrients for a baby’s needs until they are around 6 months old. By the end of their first week, most will need around 150 to 200ml per kilo of their weight a day until they are 6 months old^{[footnote 28]}.
From around 6 months, it is recommended that solid foods should be introduced to a baby. This should be in small amounts, i.e., just a few pieces, or teaspoons of food.
From around 7 months, a baby should gradually move towards eating 3 meals a day (breakfast, lunch and tea), in addition to their usual milk feeds. If a mother is breastfeeding, her baby will adapt their feeds according to how much food they are having. As a guide, formula-fed babies may need around 600ml of milk a day^{[footnote 29]}.
From around 10-12 months, a baby should be having 3 meals a day (breakfast, lunch and tea), in addition to their usual milk feeds. Breastfed babies will adapt their milk consumption as their food intake changes. As a guide, babies fed infant formula will drink about 400ml daily.
Where a baby is breastfed, it is recommended that they are given a daily vitamin D supplement from birth.

Children aged 1 and 2

From 12 months, the NHS advises that a child should be eating 3 meals a day including a variety of foods and may also need 2 healthy snacks in between meals. Suggestions on what these should include can be found on the NHS website. Infant formula is not needed and toddler milks, growing-up milks and goodnight milks are also unnecessary, and a baby can drink whole cows’ milk. The NHS also recommends that all children aged 6 months to 5 years should be given vitamin A, C and D supplements every day.

Summary

For a pregnant woman, during the early stages of a pregnancy, research concludes that there are no additional nutritional needs, but there is a need to maintain a well-balanced diet. This may involve substituting some items in an individual’s diet to ensure they are getting the required nutrients. However, in the latter stages of a pregnancy, a pregnant woman may have additional needs above that of an average person during their pregnancy, particularly during the final 3 months, which may require additional payments to meet these needs.

For babies where a mother is breastfeeding, for around about the first 6 months of a baby’s life, there will be no cost in feeding the child above the mother ensuring she is eating a well-balanced, varied diet, which may include consuming additional calories. Any extra nutritional costs are countered by the fact there is little to no food costs for a breastfed baby. Where a mother decides to use instant formula, there will be a cost in purchasing that formula. Using market research and NHS advice outlined in annex B, it is determined that at 6 months old, when formula intake is likely to be at its most, the cost of formula is comfortably below the weekly allowance for food.

For children aged 1 and 2, there are likely to be no additional costs above that of an average person. Whilst it is important that a child has a balanced diet and receives the right nutrients, these are in smaller portions than what an adult would eat, therefore food costs will be lower.

However, NHS guidance and advice is clear that a healthy balanced diet is important for a child’s development, especially for children under the age of 3. Having additional payments specifically for the purposes of buying healthy food will encourage consumption of that food, rather than being tempted by cheaper, unhealthier alternatives. Payments allow individuals to buy healthy foods to suit their own preferences. There is also research^{[footnote 30]} that shows the importance of similar schemes on improving nutrition and reducing health inequalities.

Conclusion

Our research shows that the additional payments are not necessary to ensure young children are able to meet their essential needs, however, they may be needed to ensure pregnant women can meet their nutritional needs in the latter stages of a pregnancy. Payments however should remain in place for young children as well, to encourage healthy eating whilst also acting as a safety net. This aligns closer with the original intention of the payments and the ‘equivalent’ schemes for British citizens.

These rates have not increased since 2003, but the cost of food has, therefore purchasing power has fallen and less can now be bought with the payments than when they were introduced. Given there is not a set basket of goods, and all/most essential nutritional needs should be met via the main rate or catering provisions, it is difficult to be able to accurately quantify what the rates of payments should be. We have therefore determined that the rates should be set in line DHSC’s Healthy Start payments as their payments are provided for a similar purpose. The current rates are:

£4.25 per week for pregnant women who are at least 10 weeks pregnant
£4.25 per week per child aged over 1 and under 4
£8.50 per week per child under 1

Our research also identified the importance of vitamin supplements to the diet of young children and pregnant women. The Healthy Start scheme allows access to Healthy Start vitamin tablets for eligible pregnant women and women with eligible children under one. These Healthy Start vitamin tablets contain vitamin C, D and folic acid supplements. Eligible families with children aged under 4 have access to Healthy Start children’s vitamin drops that contain vitamin A, C and D supplements. GPs are not expected to prescribe these items, so we have therefore also extended the payments to cover the cost of the recommended vitamins. Market research on what equivalent supplements can be bought in shops can be found at annex B. This shows that an average weekly cost of £1 should be sufficient to cover the purchase of these supplements.

The level of the weekly additional payments for pregnant women and young children are therefore amended as below:

from £3 to £5.25 for pregnant women
from £5 to £9.50 for babies under 1
from £3 to £5.25 for children aged 1 and 2
from £0 to £5.25 for children aged 3

Question 5

Maternity payments

Accepted Answer

Overview

The “maternity payment” is a single one-off payment available to eligible asylum seekers per pregnancy to help with the costs arising from the birth of a child. The maternity payment is currently £300 for individuals on section 95 support and £250 for individuals on section 4 support. Other essential needs are covered by the main rate of asylum support that a baby receives once it is born.

The section 4 payment is lower due to extra support that is available to them. Mothers in receipt of section 4 support can claim travel costs to obtain a child’s full birth certificate and the costs of the long birth certificate (which is currently £8 in England, £15 in Wales and £10 in Scotland). The section 95 maternity payment is not in legislation, however the section 4 payment is and can be found in the The Immigration and Asylum (Provision of Services or Facilities) Regulations 2007^{[footnote 31]}).

Maternity payments can be applied for 8 weeks before the estimated date of delivery until 6 weeks after the birth. More information on the application process for the payment can be found in the asylum support instructions policy bulletin^{[footnote 32]}.

The level of the payments has not been amended since its introduction in 2000 to align with the level of the ‘Sure Start Maternity Grant’ (SSMG), which is available for individuals in England, Wales and N.I on mainstream benefits and for first pregnancies. The level of the SSMG has since increased to £500^{[footnote 33]}. In Scotland, there is an equivalent scheme called the ‘Best Start Grant’ (BSG) ^{[footnote 34]} which is currently set at £707.25 for the first child and then £353.65 for following children.

Review

There is no set basket of goods the payment is intended to cover so we have approached the review by using an NHS list^{[footnote 35]} on what items are required for a new-born and comparing against items provided via Asylum Accommodation and Support Contract (AASC) providers. We have then undertaken market research to calculate the costs of the items and this can be found at annex B.

The market research concluded that the cost of purchasing all items on the list, a birth certificate and for baby bottles and 1 week’s worth of formula milk is c.£400. AASC providers are contractually obliged to provide some of the items on the list where applicable. Removing those items from the total amount means that to buy the suggested items about £200 is required.

Conclusion

Our research shows that the current rate of maternity payment is comfortably sufficient to cover the items suggested by the NHS. However, we recognise the list is not exhaustive, there are some limitations in our market research and there may be other costs that will arise during a pregnancy or after birth. Therefore, there are no plans to amend the level of the section 95 payment.

Given that needs for individuals on section 4 support and section 95 support are the same, we have decided to align the rates, so that the section 4 rate is increased from £250 to £300. Given this, applications for separate payments for the costs of birth certificates and travel separately will no longer generally be granted. This ensures parity and simplifies operational processes by only having one rate.

As part of the review, we have listened to feedback from stakeholders regarding the length of time maternity payments can be applied for. We are widening the window in which a maternity payment can be applied for, from 8 weeks before the expected due date to 6 weeks after birth, to 11 weeks before the expected due date to 6 months after the birth. This will allow new mothers more time to apply for the payment.

Question 6

Annex A: Essential needs

Accepted Answer

The following list contains the essential needs items that the weekly subsistence payments is calculated for. The items below are per annum unless stated otherwise. Items in red have been added/amended following the 2023 review. Assumptions regarding the items can be found in reports on gov.uk (Report on review of cash allowance paid to asylum seekers - GOV.UK (www.gov.uk)).

Food and non-alcoholic drinks (self catered rates only)

The Home Office uses ONS data (LCF survey^{[footnote 36]} to determine the subsistence level needed to buy sufficient food to live healthily.

Toiletries and laundry (self catered rates only)

toothpaste x 4
toothbrushes x 4
soap x 4
shampoo x 4
shower gel x 4
deodorant x 6
toilet roll x 52
washing powder x 13
packs of tampons x 15 or male shaving items (disposable razors x 52, shaving soap x 4)
nail clippers x 1

Non-prescription medicines

Paracetamol x 3 packs
Ibuprofen x 3 packs
pack of indigestion tablets x 1
cough linctus x 1
box of hot drink sachets x 2
nasal inhaler x 2
box of cold and flu capsules x 2
pack of plasters x 1

Clothing and footwear

underpants x 3
sock/tights x 3
vests/bras x 2
tops or shirts x 2
trousers or skirts x 2
cardigans/jumpers/sweatshirts x 2
coat x 1
pairs of shoes x 2
nightwear x 1
hat, gloves and scarf x 1

Travel

weekly return bus journey x 1

Communications (self catered rates only)

notepad and pens x 4
basic phone x 1
sim x 1
pay as you go top ups x 12
international calls (£10 a quarter) x 4

Question 7

Annex B: Market research

Accepted Answer

Travel

England

On the 4 October 2023, the Prime Minister announced the extension of the £2 bus fare cap scheme^{[footnote 37]} until 2024. This covers a significant number of bus services across England.

Scotland

In Scotland, 91% of the supported population live in either Glasgow, Edinburgh, Aberdeen, Renfrewshire. Research shows that in all but one of the locations, a return journey can be made for under £4.96. In Renfrewshire, it costs £5.20 for a day ticket, but 2 x single tickets may be cheaper depending on the journey. However, this is not available to research online. There is also the option of buying a ‘5 trip bundle’ ticket for £11.75, which is 5 singles to use when needed. This equates to 2 x single journeys costing £4.70.

Wales

In Wales, 95% of the supported population live in either Cardiff, Swansea, Newport, Wrexham. Research shows that £4.70 is sufficient to meet the cost of 2 x singles or a return journey in all locations.

Northern Ireland

In Northern Ireland, 83% of the supported population live in either Belfast or Londonderry/Derry and Strabane. Research shows that £3 is sufficient to meet the cost of 2 x singles or a return journey in all locations.

Bus fare costs

City	Bus fare: 1 adult single	Bus fare: day ticket
Glasgow	£1.95	£6.15
Edinburgh	£2	£5
Aberdeen	£1.95	£5.10
Renfrewshire	£5.20	£5.20
Cardiff	£2.20	£4.40
Swansea	£2.50	£4.70
Newport	£2.20	£4.40
Wrexham	£3	£3
Belfast	£2.10	£3
Londonderry/Derry and Strabane	£2.10	£3

Toiletries and non-prescription medicines

Product	Tesco	ASDA	Sainsburys	Morrisons	Boots	Superdrug
Plasters (x20)	£1.15	£1.50	£1.25	£1.20	£0.99	£0.95
Tampons (x20)	£1.05	£1	£ 1.05	£2	£1.10	£1.49
Sanitary towels (x20)	£1	£1	£1.50	£1	£1.50	£1.70
Nail clippers (x1)	£2.25	£2	£2.25	£2.25	£1.50	£1.49

Cost of instant formula

Using the NHS recommendation of around 150 to 200ml of formula per kilo up until 6 months, the 50th centile data from UK-WHO growth charts^{[footnote 38]} and market research on the cost of formula, we can provide estimates on weekly costs. At 6 months, a baby is likely to weigh on average 8kg. That would mean a baby would likely need around 1.2l -1.6l of formula milk a day. Assuming 1 scoop of formula of 4.5g per 30ml, for 1.5 litres of formula milk a day, 225g of formula will be needed. This equates to 1575g a week. Most formula will come in 800g quantities, so a baby may need 2 of these a week at most. At 7 months, the NHS recommends a baby drinks 600ml of formula milk a day. That equates to around 90g formula a day and 630g a week.

Using the most expensive and cheapest formula available from Tesco as of September 2023, this would equate to cost of £21 to £29 per week for a baby at 6 months, and about half of that from 7 months.

Research of the cost of formula at April 2023 can also be found in a report by First Steps Nutrition Trust^{[footnote 39]}, that says:

’..the cheapest powdered first infant formula on the market was Aldi’s Mamia sold for £9.39 a 900g tin and the most expensive was Kendamil Goat sold at £20.99 for an 800g tin (First Steps Nutrition Trust, 2023). The price range between the 7 products sold under the top 3 selling brand names was lowest: £9.75 per tin (SMA Little Steps) to highest: £19 per tin (Aptamil Advanced) (average £14.36). The monthly cost of feeding a 2-3 month old infant formula using one of the most widely available products can vary from £44 to £89, compared to a cost of £39 for Mamia, even though ALL can support adequate growth and development and with no difference to infant health.’

Cost of vitamin supplements

Vitamin supplements – children

Product	Number of uses	Cost	Cost per week
Healthy Start Children’s Vitamin Drops	8 weeks	£4.29	£0.54
Vitabiotics Wellbaby Multi-Vitamin Liquid 150m	30 days	£5.75	£1.35
Abidec Multivitamin Drops for Babies & Children - 25ml	40	£7.10	£1.25
Haliborange Multivitamins Orange Liquid 250ml	50	£5.50	£0.77
Average costs			£0.98

Vitamin supplements – pregnant women

Product	Number of uses	Cost	Cost per week
Boots Folic Acid + Vitamin D 60 Tablets (2-month supply)	60	£4	£0.47
Boots Pregnancy Essential Vitamins – 30 Tablets	30	£3.80	£0.89
Tesco Health Pregnancy Support 30 Tablets	30	£3.50	£0.82
Pregnacare 30S	30	£4	£0.94
Average costs			£0.78

Cost of NHS advised list of ‘what you’ll need for a baby’

Item	Average costs
Bed	£92.67
Bedding x2	£10.67
Blanket	£4.83
Mattress	£44
Bedding Total	£152.17
Pram	£90
Car Seat	£50
1 pack nappies	£2.04
2 pack wipes	£1.25
5 Vests	£6.50
2 pack Cardigan	£7
Hat and mittens	£4
Baby Gro 10-12	£23.67
Bottles	£17
Socks	£3.75
Birth certificate	£15
1 week’s formula milk	£25
Total	£397.37
Total minus bedding and car seat	£195.20

Market research undertaken in August 2023.

Question 8

Annex C: Price changes methodology caveats and assumptions

Accepted Answer

The caveats and assumptions associated with the methodology and figures relating to changes in the price of essential goods are outlined below. This includes goods that were included in the 2020 review and updated food and non-alcoholic drink costs from the 2022 LCF survey. This does not include the prices of goods that have been added to the list of essential goods following the market research conducted as part of this review, since the prices of these goods are already given in prices correct as of September 2023.

This method is used on the basis that essential living costs only change because of changes in the prices of these goods, and that levels of consumption needed to meet essential living needs remain to be the same.

For COICOP CPI rates (food, clothing and communications), this methodology has been developed on the basis that section 95 recipients have the same experience of price changes across the given categories of need as the average UK household in relative terms when calculating any uplift in baseline prices.^{[footnote 40]} This means no adjustment is made for characteristics specific to this group beyond the initial base rates, and the appropriate weighting of each category when calculating the total payment. There is no available robust data currently available to refine this assumption.

The ONS has published some experimental analysis tracking the price of the lowest-cost grocery items.^{[footnote 41]} This shows that CPI sub-division for food and non-alcoholic beverages was broadly representative of price changes across the lowest-price items within 30 everyday grocery items across the time period covered in the analysis (April 2021 to September 2022). This suggests that the inability to adjust for income decile in the CPI sub-division data has a limited impact on results.

However, it is unknown whether more significant relative differences may emerge in the future, and there is some evidence which has identified differences in food inflation across income deciles in the past (due to differences in specific food and drink goods and/or types bought depending on income decile).^{[footnote 42]} While the experimental statistics published by the ONS are not as robust as official statistics, if this is a frequently updated publication, it may be more appropriate to pivot towards this data in the future. Additionally, the ONS has committed to changes in measuring the changing prices and costs faced by household to account for differences in income levels,^{[footnote 43]} so further alternative data may be available in the future.

COICOP CPI data are classified as National Statistics, meaning they are assessed as fully compliant with the Code of Practice for Statistics (that is, they meet the highest standards of trustworthiness, quality and value).

The bespoke baskets (toiletries, non-prescription medicines, laundry/toilet paper, and bus fares) use item-level data published by the ONS^{[footnote 44]}. While these items are constituent parts of the overall CPI basket of goods, item-level indices are less robust due to much smaller sample sizes. Item-level data are not classified as National Statistics, and there are fewer statistical processes in place to control for issues such as volatility. However, this method uses the best available data, and only accounts for around 15% of total costs.^{[footnote 45]}

There is a risk that specific items included in the bespoke measures are removed from the CPI basket of goods following the annual review of CPI shopping baskets, which occurs every January. If any of the items used in this measure were removed, it would not be possible to update changes in the price of these, since item-level data is sourced directly from CPI publications. The risk of this is likely to be relatively low, since the goods captured are deemed to be essential. However, there are instances whereby specific items are not included in the CPI basket at the time of writing, meaning proxies have been used.

The Home Office has engaged with the ONS in developing this methodology.

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Introduction

Stakeholder engagement

Main rates

Overview

Food and non alcoholic drinks

Previous approach to food baseline costs:

Updated approach to baseline food costs:

Clothing

Communications

Travel

Toiletries and non-prescription medicines

Non-prescription medicines

Toiletries and laundry

Results

Families and children

Exceptional needs

Hospital rate

Additional payments for pregnant women and young children

Overview

Court judgement: HA & SXK

Section 55 of the Borders, Citizenship and Immigration Act 2009

Review

Pregnant women

Breastfeeding mothers

Babies under 1

Children aged 1 and 2

Summary

Conclusion

Maternity payments

Overview

Review

Conclusion

Annex A: Essential needs

Food and non-alcoholic drinks (self catered rates only)

Toiletries and laundry (self catered rates only)

Non-prescription medicines

Clothing and footwear

Travel

Communications (self catered rates only)

Annex B: Market research

Travel

England

Scotland

Wales

Northern Ireland

Bus fare costs

Toiletries and non-prescription medicines

Cost of instant formula

Cost of vitamin supplements

Vitamin supplements – children

Vitamin supplements – pregnant women

Cost of NHS advised list of ‘what you’ll need for a baby’

Annex C: Price changes methodology caveats and assumptions

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