The costs of destitution
The cost-benefit analysis of extending the move-on period for new refugees
When a person is recognised as a refugee in the UK, they have just 28 days to avoid homelessness and destitution. For many, 28 days is not long enough.
In December 2018, we published a report showing how the 28-day move-on period often leaves people facing extreme poverty and homelessness. Through it, we recommended that the move-on period should be extended to at least 56 days.
We then commissioned the Centre for the Analysis of Social Exclusion at the London School of Economics and Political Science (LSE) to build on this research. They did a cost-benefit analysis of extending the move-on period to 56 days.
Our report, The costs of destitution, shares the LSE’s analysis. It concludes that giving refugees four additional weeks of support by extending the move-on period to 56 days could result in net annual benefits of between £4 million and £7 million to the UK. This was based on figures from the asylum system in 2020 and the savings are likely to be greater in 2024 due to the size of the asylum backlog and the number of people being granted refugee status.
What’s wrong with the move-on period?
The 28-day move-on period in the UK is leaving refugees on the brink of destitution. Evidence from people supported by British Red Cross services shows that newly recognised refugees are struggling after successfully applying for asylum. Many can’t move from asylum support to mainstream benefits and employment within the 28-day period given to them by the Home Office.
In August 2023, the move-on process changed, leaving some people with as little as seven days to move out of their asylum accommodation. This is leading to devastating levels of destitution.
Read more about destitution among people seeking asylum and refugees.
Key findings
An extended move-on period would benefit national, regional and local governments, as well as local communities. Most importantly, it would give refugees the support they need as they start to rebuild their lives in the UK.
Increasing the move-on period from 28 to 56 days would lead to net financial benefits of £4 million to £7 million annually, across:
- homelessness
- rough sleeping
- mental and physical health
- wellbeing
- employability
Our recommendations
Refugees should not face destitution and homelessness after being granted protection in the UK. To address this, our calls to decision makers is to:
- Extend the move-on period for newly recognised refugees to at least 56 days.
- Address the immediate administrative barriers that prevent newly recognised refugees moving on from asylum support.
- Improve the support provided to newly recognised refugees to help them navigate the move-on period, ensuring they are fully informed of and engaged with the decisions they are making
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