HL Deb 11 October 1999 vol 605 c21WA
Viscount Brentford

asked Her Majesty's Government:

Whether the combined cost of administering £30 worth of vouchers and providing accommodation far one individual asylum-seeker would be £165, whereas the cost for that individual under a system of income support and housing benefit would be only £110. [HL4077]

Lord Bassam of Brighton

Support arrangements will vary between applicants depending on their needs and the circumstances pertaining when their claim is considered. The cost of providing support within the Asylum Support Scheme from April 2000 will therefore vary for different applicants and it is not possible to make direct comparisons. Provision of support in kind could be more expensive to administer than cash payments, but it is likely to be less attractive to those who are seeking to exploit. Take-up of provision in kind is expected to be lower than would be the case in a cash based support system. Provision in kind will help minimise the incentive and opportunities for abuse.

We have not yet made a detailed assessment of the cost of administering the voucher scheme. We are contracting out this element of the scheme and subjecting it to competitive tender in Autumn 1999, to ensure that costs are kept as low as possible, consistent with the need for effective delivery of the service. Similarly we will be contracting out the provision of accommodation and detailed costs are not yet available.