MEMO
DATE
3 April 2020
TO
Carolyn Tremain, Chief Executive, Ministry of Business, Innovation and
Employment
FROM
Catriona Robinson, Acting Deputy Chief Executive, Immigration New
Zealand
SUBJECT
INCREASING FINANCIAL SUPPORT TO ASYLUM CLAIMANTS
PURPOSE
The purpose of this memo is to seek approval to increase the allowance paid to a small group of
asylum claimants from $120 to $225 per week. The allowance was last increased in 2015 from
$85 to $120. It is currently paid from Immigration New Zealand’s (INZ’s) Compliance and
Verification budget and is not recoverable.
RECOMMENDATIONS
It is recommended that you:
a)
Note that Immigration New Zealand pays an allowance of $120 per week to a small
number of asylum seekers who have not been issued with visas (and as such are
unable to work or claim any benefit from Work and Income) and are not housed at the
Mangere Refugee Resettlement Centre
Noted
b)
Agree to an increase in the allowance to $225 net per week, an amount mid-way
between the net jobseeker’s allowance for a single person aged 25 or above and the
net jobseeker’s allowance for a person in a partnership without children as at 1 April
2020
Agree/ Discuss
c)
Note that no increase is proposed to the allowance of $85 per week which is currently
paid to asylum claimants residing at the Mangere Refugee Resettlement Centre
Noted
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d)
Note that an increase to the allowance does not require Cabinet approval.
Noted
_____________________________
______________________________
Catriona Robinson
Carolyn Tremain
Acting Deputy Chief Executive - Immigration
Chief Executive, Ministry of Business,
3 April 2020
Innovation and Employment
6 April 2020
2
BACKGROUND
1.
There is currently a small number of refugee and protected person claimants in New
Zealand who have been refused entry permission and a visa1. Because of their refused
entry and unlawful immigration status, this category of claimant does not have the
ability to legally support themselves in New Zealand while their claim is being
progressed (through working or claiming assistance from the Ministry of Social
Development). Due to their status as claimants they are also unable to be deported from
New Zealand.
2.
Consistent with New Zealand’s obligations under the International Covenant on
Economic, Social and Cultural Rights (in particular Article 11 which provides that States
will take appropriate steps to ensure the realisation of the right to an adequate standard
of living), Immigration New Zealand (INZ) pays a living allowance to these claimants
where they are released from detention into the community, or to the Mangere Refugee
Resettlement Centre (MRRC).
3.
As at 1 April 2020, 11 asylum claimants have been released on reporting conditions into
the community and are eligible to receive the living allowance. Nine of the eleven
asylum claimants are released on reporting conditions to the Asylum Seekers Support
Trust (ASST) in Auckland and two claimants are released on reporting conditions to
other addresses in the community. (Two further claimants released on conditions to the
MRRC are eligible only for a lesser allowance of $85 per week.)
4.
INZ has received submissions from members of the public regarding the need for an
increase to the weekly allowance payments, including from the ASST. While work was
already underway to propose an increase in the allowance, the current situation
requires more urgent action, as some asylum seekers have now been released into the
community as a result of the COVID-19 lock-down. It was not considered appropriate for
the claimants to remain in detention in Corrections facilities at this time.
Eligibility for the allowance
5.
The allowance is payable to those who have lodged a claim with the Refugee Status Unit
to be recognised as refugees and protected persons under Part 5 of the Immigration Act
2009 (the Act) and whose freedom of movement is restricted2 under the Act in the
following circumstances:
Released on Conditions into the Community (RoC) under s120 of the Act
1 A person who comes to New Zealand unlawfully is denied entry and detained until they can be removed. If a claim
for asylum is then made, that person will continue to be detained but is not removed. Immigration New Zealand
determines where and how they should be detained, and adopts a humanitarian approach to such detention, by
allowing them to be released on conditions into the community.
2 But it is not paid to those who are detained under the Immigration Act 2009.
3
Released on Residence and Reporting Requirements Agreement (RRRA) into the
community under s115 of the Act.
6.
Asylum claimants who are detained under a warrant of commitment under the Act and
not released on conditions into the community or to the MRRC do not qualify for the
payment. Those who have sought asylum more than once in New Zealand and have
already had decisions made on their claims are also not eligible.
Current allowance rates
7.
The amount of the living allowance is currently set as follows:
Claimant residing in the community: $120.00 per week
Claimant residing at MRRC: $85.00 per week (claimants are provided with
accommodation and related services)
8.
As the housing requirements for claimants released to the MRRC are fully met, no
increase to the relevant $85 per allowance is proposed.
Payment of allowances is discretionary and subject to review
9.
The payment of these allowances by INZ is discretionary and dependent on the claimant
being able to prove to INZ that they require financial assistance. The allowance is
generally only provided if it is requested, and in most cases it would be the individual’s
representative who requests the payment on behalf of their client and confirms that the
claimant had arrived in New Zealand with little or no money.
10.
The payment of allowances to each individual is reviewed every six months to confirm
whether the asylum seeker is still meeting the criteria. As soon as a claim is either
approved or declined, the claimant, their representative and Ministry of Business
Innovation and Employment (MBIE) Finance team are notified, and the payment is
ceased.
RATIONALE FOR INCREASE
11.
The current allowance for claimants released into the community and not residing at the
MRRC is insufficient to provide adequate support for them as they are waiting for their
refugee claim to be determined, especially as the majority reside in Auckland where the
cost of living is relatively high. (Claimants released on conditions into the community to
the Asylum Seekers Support Trust are required to meet the costs of their own food and
to contribute to the rental cost of the accommodation.)
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12.
The proposed new allowance amount of $225 is the midpoint between the net Job
Seeker’s benefit for a single 25 year old ($250.74) and a person in a relationship without
children ($200.60), as at 1 April 20203, rounded to the nearest $5.
13.
In determining the level of increase, INZ has considered the need to keep the amount
less than that provided to single jobseekers aged 25 and above, to ensure that the
increase does not in itself incentivise unlawful entry to New Zealand.
14.
The proposed increase in the allowance may also enable more claimants released on
conditions to be housed outside the MRRC, where there are periodic pressures on space
for those already determined to be refugees.
FINANCIAL IMPLICATIONS
Total payment of the allowances has been low
15.
Allowances are paid to a small group of claimants only and expenditure has been low
over the last five financial years:
Financial Year
Expenditure
2014/2015
$52,075
2015/2016
$26,938
2016/2017
$16,913
2017/2018
$12,395
2018/2019
$5,802
2019/2020 YTD
$28,631
16.
INZ Finance forecast a full year spend of $38,175 at the current allowance rate (i.e. if no
increase is approved).
17.
If the allowance is increased from $120 to $225 (an 88 per cent increase), an additional
$8,398 cost is forecast for the remainder of the current financial year4.
18.
The expected impact across a full financial year5 would be an additional $33,593. So the
estimated annual cost from 2020/21 onwards would be approximately $72,000.
3 As set out at https://www.workandincome.govt.nz/products/benefit-rates/benefit-rates-april-
2020.html#null
4 This assumes an effective date of early April and was calculated as an average from the current
monthly run rate of allowances.
5 Based on this year’s average number of claims.
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Affordability
19.
INZ currently has a number of cost and funding pressures, particularly in the 2020/21
financial year, however this expenditure only represents a very small portion of the total
Immigration budget. While the increased cost will need to be absorbed from within
INZ’s existing baseline, it is not likely to have a material impact on INZ activity.
20.
The allowances are paid from Crown funding rather than through Fees and Levies.
Costs in out-years
21.
It is difficult to determine the likely cost to INZ of allowance payments in out-years as
the number of asylum claimants in New Zealand at any given time may be influenced by
events outside the control of New Zealand.
s 9(2)(h)
POTENTIAL RISKS
25.
There are potential media and political risks associated with a decision to increase the
allowance, primarily the potential negative perception that claimants are receiving
similar entitlements to New Zealand citizens and residents and that increasing the
allowance may incentivise individuals to make unmeritorious claims for asylum.
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26.
Conversely those people who have requested an increase to the allowance to $250 per
week (the Asylum Seekers Support Trust) may consider that the proposed increase is too
low.
27.
The INZ Comms team is aware of the proposed change in allowance and will have key
messages prepared for use in the event of media interest.
CONSULTATION
28.
INZ Finance, INZ Refugee and Migrant Services, MBIE Legal Services and the Ministry of
Social Development have been consulted during the drafting of this paper.
NEXT STEPS
29.
If the proposed increase to the allowance is approved, INZ will move towards
implementation which will include comms to stakeholders at the appropriate time.
30.
Given the potential risks set out above, the Minister of Immigration will also be briefed
on the increase to the allowance.
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