Social Cost Benefit Analysis of the no recourse to public funds (NRPF) policy in London

Ellie Benton, Jacob Karlsson, Ilona Pinter, Bert Provan, Kath Scanlon and Christine Whitehead

Published 23 March 2022

This report estimates the monetised social and economic gains (benefits) of removing of the No Recourse to Public Funds (NRPF) condition for certain household in England. It compares this to the costs of allowing them to be able to apply for welfare benefits and various public services paid for from public funds. This is in the form of a Social Cost Benefit Analysis and was prepared as an independent analysis for the Greater London Authority. The households in scope are households and families with visas statuses including the right to work, some of whom are on visa routes that could lead to long-term settlement in the UK. These includes holders of Tier 1, 2 or 5 visas who come to the UK to work and their dependents; those who are in the UK because of family links; dependents or others who are linked to the primary visa holder and those estimated to come via the Hong Kong British National Overseas scheme. The report estimates that there are approximately 362,000 households, including 106,000 households with children, would potentially be affected by lifting the NRPF condition. Access to public funds would be restricted by existing qualifying conditions limiting access to welfare benefits and other services to households in need of this public assistance. It found that, over ten years, removing the NRPF condition just for households with children and other vulnerable individuals would result in a net gain of £872 million. Removing the condition for all those on these visas would result in a £428 million net gain.