§ Lord Lester of Herne Hillasked Her Majesty's Government:
Further to the statement made by Lord Mackay of Ardbrecknish on 22nd July 1996 (H.L. Deb., col. 1208), how the costs of £30 million, £100 million and £140 million, in relation to the proposed three "grace days" for asylum seekers, were calculated.
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)If restrictions to the benefit provision for asylum seekers had not been introduced the cost of asylum seekers would have risen to approximately £400 million in 1997–98. This figure is based on the numbers of: asylum applications; decisions made; appeals outstanding; benefit claims; and the amount of benefit claimed in 1995.
The annual cost was expected to fall to £140 million. The figure was based on an estimate of the number of asylum seekers who would be deterred, and proportions who would still apply in-country and at port, following the introduction of benefit restrictions in February 1996.
The £30 million estimated cost of the proposed three day grace period was based on the savings attributed to the proportion of in-country applicants who apply within one week of arriving in the UK. It recognised a behavioural impact from asylum seekers applying earlier in order to claim benefit.
The £100 million cost was calculated by establishing the proportion of port applications that are unsuccessful and applying this to the annual on-going cost.