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What do Home Office reforms mean for refugee children growing up in poverty?

Written by
Ilona Pinter, London School of Economics and Political Science (LSE)
Date of Publication:

The reforms to asylum and refugee policy anounced by the Home Office are already having a negative impact on asylum seekers and those with refugee status, even before they have been implemented. Ilona Pinter brings some first person testimonials about how these reforms are affecting asylum seekers and their children.

Last November, the UK government announced a series of reforms to asylum and refugee policy that would make it more difficult for individuals and families with children to access support during the asylum determination process, and to settle in the UK once granted refugee status. Even before their implementation, these announcements have left many families deeply concerned about their future, contributing to growing distrust and uncertainty. The measures, if implemented, are also likely to see increased risks of poverty, destitution and homelessness, among thousands of asylum-seeking children and families. During the last decade (2016-25), over 98,000 children claimed asylum with their families, with annual figures growing considerably in recent years; from a low of 6,008 in 2017 to a peak of 15,877 children in 2024. At the end of 2024, over 24,000 children were receiving Home Office-administered Asylum Support with their families (from Home Office FOI data in Pinter, forthcoming).

The lived reality of refugees

The following is a testimony of Sarah*, a refugee parent who participated in the Family Finances study:

"When I first heard the news, I didn't want to panic, but it's hard not to be worried, especially given the uncertainty.

"I am a single parent and sole carer for my son, who has a disability. Before gaining refugee status a few years back, I spent four years waiting for my asylum claim to be determined. During this time, I wasn't allowed to work or access mainstream benefits because we had 'no recourse to public funds' (NRPF). I didn't have any other source of income, so my son and I received Asylum Support, including weekly subsistence payments and accommodation from the Home Office. When we were recognised as refugees, we were granted limited leave to remain, and I now have a few more years before I can apply for indefinite leave to remain (ILR), which would allow us to stay here and eventually apply for citizenship.

"When I heard the news, I didn't really know what these changes meant for my son or me; will we be able to stay here? Scotland is our home now. We don't have any other passports. We don't have anywhere else to go. My son was a toddler when we came here and has grown up in the UK. All of his memories are from here. Because of his disability, I had to choose which language to teach him, so of course I prioritised English. Now he only speaks English and doesn't speak my mother tongue, so it would be really difficult to leave. These worries are on my mind.

"Since getting our refugee status, I've been able to access vital benefits such as Universal Credit, Child Benefit, and Scottish Child Payment, which have been a lifeline for my son and me. As he has a disability, he is eligible for Child Disability Payment, which he was excluded from before because of my NRPF status. It's like his disability didn't matter before – he wasn't seen to have these needs. We only got the standard weekly allowance [of Asylum Support], but this wasn't enough. Now, rather than just surviving, I can provide for his needs, like taking him to soft play or on outings and making sure he has his school uniform. As part of its reforms, the UK government has also proposed limiting benefits for refugees; this would be devastating for my family. We don't have ILR yet, so I am at their mercy."

Excluding asylum seekers from poverty protection

Family Finances – a collaboration between the universities of Glasgow, Manchester, York and the LSE, and Child Poverty Action Group Scotland – looked at the difference that Scottish Child Payment (SCP) makes to families like Sarah's on a low income who receive Universal Credit. The SCP was introduced in 2021 as part of Scotland's devolved benefits programme to help tackle child poverty. But as both Universal Credit and SCP are "public funds" for immigration purposes, SCP is not available to families while they are in the asylum system, waiting to resolve their status or if they have no recourse to public funds (NRPF) conditions on their visa, which most migrants to the UK have.

Other former asylum-seeking parents interviewed for the Family Finances study spoke about the difficulties they faced, not being allowed to work and receiving limited subsistence payments under Asylum Support. For Esther*, a single parent with three children, the years out of work had deskilled her and affected her ability to access well-paid work when she eventually got status:

"Yeah it definitely affected the kind of work I'd get even especially because I didn't work for over five years, so and because there was so minimal financial support within the asylum process you don't get to go out and integrate with people. So I ended up losing so much of my confidence … after the asylum process I had to like start looking for very low paying jobs because that is what I could do back then."

While asylum seekers are generally not permitted to work, those waiting on their claim for over 12 months can apply for permission to work. In 2022, 15,706 claimants were granted permission, though data is not routinely published. New rule changes will give the Home Office greater discretion to refuse, reduce, or discontinue Asylum Support for recipients, including families in which parents have the right to work. In separate research with 26 asylum-seeking and refugee families, several parents interviewed did have this permission, but most couldn't take up work because they lacked access to childcare support and in-work benefits. In coupled families, only the main applicant could apply for permission. Those granted it would have been limited to jobs on the immigration salary list and, as two parents pointed out, they could be paid at 80 per cent of market rates, so in practice, earned income would be insufficient to cover family needs and accommodation. Permission to work has become even more restricted recently, and it's unclear how the Home Office will deal with these common complexities.

Another change, already implemented, is that children and families claiming asylum from 2 March 2026 onwards will be granted a shorter protection status, which will be reviewed every 30 months, and families will only be able to apply for settlement after 20 years. This will be devastating for the health and well-being of children and parents affected; getting refugee status and the sense of peace and safety this brings is critical for children's and parents' well-being.

The government also plans to remove support from thousands of children and families whose claims have been refused, to help enforce their removal from the UK, with additional powers to use force on children. Past iterations of using destitution to affect family returns have been deeply damaging to children's safety and welfare.

Recognition but no action

In combination, these reforms alongside measures coming in through the government's "Earned Settlement" Scheme could see increased child poverty risk among asylum-seeking, refugee and migrant families, and increased uncertainty for children growing up in this context.

While the Government's recent Child Poverty Strategy recognised the vulnerabilities faced by families excluded from social security, it did not provide any concrete solutions to address the systemic disadvantages they face. Notably, the strategy was completely silent on the deep and persistent poverty experienced by children reliant on Home Office-administered Asylum Support, whose parents are restricted from employment – clear policy levers at the government's disposal. Global events are unlikely to eliminate the need for forced migration. Meanwhile, poverty and uncertainty for children and families trying to rebuild their lives here will increase.