ASSESSING OTHER INCOME OR CAPITAL THAT HAS BECOME AVAILABLE TO ASYLUM SEEKERS SUPPORTED UNDER THE IMMIGRATION AND ASYLUM ACT 1999, SECTION 95

65 - ASSESSING OTHER INCOME OR CAPITAL THAT HAS BECOME AVAILABLE TO ASYLUM SEEKERS SUPPORTED UNDER THE IMMIGRATION AND ASYLUM ACT 1999, SECTION 95

SCOPE OF THE DOCUMENT

1. This document gives guidance to NASS case-workers for dealing with NASS supported (or NASS eligible) asylum seekers who are in receipt of income, other types of support or have received a one off boost in capital. This document should be read in conjunction with Section 003 of the NASS Instructions Manual (NIM), which gives guidance on

which assets should be taken into account and
how to determine average income (the "Five Pay Slip Process").
Permission to work

INCREASE IN CAPITAL

2. If a NASS supported person in NASS accommodation receives a modest boost in their capital the threshold in column 1 of Annex A should be applied (for a definition of capital please refer to relevant section). If the person's capital is above the level for their appropriate threshold their support should be discontinued on the basis that the person is no longer destitute. This is because their capital will meet their essential living needs for 8 weeks (please also see section 3.103 of NIM that explains the principles behind the Threshold tables).

Example 1
Mr x, a 27 year old single was granted support in June 2000 and he was allocated self-catering NASS accommodation in Manchester. In August he received a lump sum of £505 from a relative. As his capital is below the threshold in column 1 (£1070.72), he therefore continues to be eligible for NASS support. His subsistence payments are withheld for 13 weeks and a reduced voucher payment of £6.56 should be made in week 14 until his £505 has been depleted at the NASS support rate. At week 15, the regular voucher payment of £36.54 should be made.

£505 / £36.54 = 13.82 weeks of support

Weeks 1 - 13 Mr x is fully able to meet his essential living needs;

In week 14 he can only partly meet his needs, 0.82 of a weeks worth of cash (£29.98), so NASS needs to make up the difference through a voucher payment of £6.56

Week 15 - he receives his normal voucher allocation of £36.54

The same person allocated full board NASS accommodation would have his subsistence withheld for 50 weeks and a reduced voucher payment of £5.00 should be made in week 51 until his £505 has been depleted at the NASS support rate. At week 52, the regular voucher payment of £10.00 should be made.

Example 2
Ms Z is a 21-year-old lone parent with a 2-year-old child, who was granted support in May 2001 and is living in NASS self-catering accommodation in Leeds. In July 2001, she had a small win on the lottery of £1,000. As this capital is below the threshold in column 1 (£1,070.72 + £991.20 = £2061.92), she therefore continues to be eligible for NASS support. Her subsistence payments are withheld for 14 weeks and a reduced voucher payment of £12.35 should be made in week 15 until her £1,000 has been depleted at the NASS support rate. At week 16, the regular voucher payment of £67.49 should be made.

3. If the supported asylum seeker, is receiving subsistence support only, and receives an increase in their capital, the threshold in Annex A, column 2 should be used. If the person's capital is above the level for their appropriate threshold their support should be terminated on the basis that the person is no longer destitute because their capital will meet their essential living needs for 8 weeks (please also see section 3.103 of NIM which explains the principles behind the Threshold tables).

Example 3
Mr Y is a 23 year old male, who was granted support in June 2001 and found accommodation in London with his uncle who has indefinite leave to remain. In August, he received a birthday present of £100.00. As this capital is below the threshold in Column 2 (£231.60), he remains eligible for NASS support, which can be suspended until he has depleted his capital. His subsistence payments should be withheld for 3 weeks and a reduced voucher payment of £15.80 should be made in week 4 until his £100 has been depleted at the NASS support rate. At week 5, the regular voucher payment of £28.95 should be made.

4. If the asylum seekers' capital exceeds the value of the threshold limits (Column 1 for those receiving NASS accommodation and subsistence and Column 2 for those receiving subsistence support only), support should be discontinued on the basis that we consider them to be no longer destitute. The person should be advised that they may re-apply for support should they again become destitute.

EARNINGS OR INCOME

5. If the NASS supported person's expected earnings or income is likely to meet their essential living needs for eight weeks then their support should be ended. You should calculate the asylum seeker's average earnings /income and compare it to the appropriate figures in column 3 of the table at Annex A if they are living in NASS Accommodation. Those living in private accommodation and only receiving subsistence support should have their support discontinued if their average weekly income exceeds their weekly voucher allocation. Income includes wages, salaries, pensions, grants and income support payments (there maybe other forms of income) which is reasonably available to the applicant or any dependant of his ( see also regulation 6 and 12 of the Asylum Support Regulations 2000) . (Please refer to section 3.115 of the NIM in order to calculating average earnings and section 3.103 which gives guidance on the principle of threshold tables).

Example 4
Mr x' s a 27 year old single was granted support in June 2000 and he was allocated self-catering NASS accommodation in Manchester. In December he had still not received an initial decision into his asylum claim and so he applied and was given permission to work. He has taken up full-time employment as a teacher and is earning £350.00 per week. It is considered that he will remain in this employment for more than eight weeks. As his income exceeds his weekly threshold of £133.84, his support should be discontinued.

Example 5
Mr Y is a 23-year-old male, who was granted support in June 2000 and found accommodation in London with his uncle who has indefinite leave to remain. In December, he gets married to a British Citizen who is employed full time as a solicitor. Her earnings exceed the weekly subsistence level for a couple, assuming there are no changes to their circumstances over the next eight weeks, his support should be discontinued as he is considered no longer to be destitute.

EARNINGS OR INCOME IS LESS THAN NASS VOUCHER SUPPORT LEVEL

6. If the NASS supported person's earnings or income is less than the NASS weekly voucher support level you should deduct the earnings or income from his/her normal level of support.

Example 6
Mr x' s application for support was granted in June 2001 and he was allocated self-catering NASS accommodation in Manchester. In January 2002 he was granted permission to work by the ICD and now earns £20 net per week. His NASS support level is £36.54 per week. Deduct his earnings from his entitlement. (36.54-20= 16.54). His entitlement is £16.54 which should be paid in vouchers.

"EXCESS INCOME": EARNINGS OR INCOME LESS THAN THRESHOLD RATE BUT MORE THAN SUBSISTENCE RATE

7. If the NASS supported person's average earnings are more than the normal NASS subsistence rate but the earnings or income are not expected to meet the asylum seeker's living needs for eight weeks you should deduct the appropriate weekly NASS subsistence rate from his weekly earnings. The difference is known as "excess income" and is the amount that the applicant should contribute towards NASS housing costs (less a small amount for the cost of a postal orders, envelope and postage as appropriate). NASS case-worker should work out the cost of postal orders ( if applicable) and postage and deduct this from the amount that the person should contribute towards housing costs ( see Annex B)

Example 7
Mr x' s application for support was granted in June 2001 and he was allocated self-catering accommodation in Manchester. In January 2002 he was granted permission to work by the ICD and now earns a regular £50 per week.

Deduct the weekly NASS subsistence payment from his weekly earnings. £50.00 - £36.54=£16.54. The difference (£ 16.54) is the excess income which the applicant should contribute towards NASS housing costs (less a small amount for the cost of a postal order, postage and packing as appropriate).

If Mr X is in full board accommodation, the deduction should be as follows. £50.00 - £10.00 = £40.00. The difference (£40.00) is the excess income that the applicant should contribute this towards NASS housing costs (less a small amount for the cost of a postal order, postage and packing as appropriate).

Example 8
Ms Z is a 21-year-old lone parent with a 2-year-old child, who was granted support in May 2000 and is living in NASS self-catering accommodation in Leeds. In November 2000, she had still not received an initial decision into her asylum claim and so she applied and was given permission to work. She has taken up part-time employment as an interpreter. On average she is earning about £150 each week. In this case as her income is below the threshold for a lone parent and child aged under 16 (£133.84 + £128.25 = £262.09) as shown on Column 3 of Annex A, so her support must not be discontinued.

Since Ms Z has chosen to remain in NASS self-catering accommodation, rather than find her own accommodation, she is expected to contribute towards the cost of the accommodation, as follows: £150.00 - (£36.54+30.95) = £82.51. The difference (£82.51) is the excess income that the applicant should contribute this towards NASS housing costs (less a small amount for the cost of a postal order, postage and packing as appropriate).

8. If the NASS supported person has "excess income" you should write to the person using the template at Annex C, enclosing a pre-paid envelope to the asylum seeker advising him how much his contribution should be and that he should forward it to the Finance section. The letter warns the person of the consequences of failing to make the contribution. The caseworker must copy the letter to the Finance section.

9. Payment can be made either by cheque or postal order and must be made payable to "THE HOME OFFICE ACCOUNTING OFFICER"

10. Post Office fee for cost of postal order: The price of post office postal orders should be kept locally and updated at regular intervals to reflect price changes. (See annex B)

11. Finance will maintain a spreadsheet of all payments due and record incoming money.

12. Finance will forward monies received to accounts branch for banking.

13. If a cheque is returned as "Refer to Drawer" (bounced) we should invite the asylum seeker to submit a fresh payment by means of a Postal Order or provide an explanation about being unable to make such payments (Use the template letter at Annex d). Failure to make such payments or to provide a satisfactory explanation for not making the payment as required should be treated as stated in paragraph 15. Any further payment should be made through means of Postal Orders, unless the casework team's EO or above (after taking advice from Finance) considers that there were exceptional circumstances for having this cheque payment returned as unpaid. The asylum seeker should be informed accordingly.

14. If for a period of three weeks the person does not send in the required amount, Finance will inform the caseworker who sent the letter, by email and record this on the spreadsheet. The caseworker will then decide on what action to take (see below).

FAILURE TO COMPLY WITH REQUIREMENT TO CONTRIBUTE TOWARDS HOUSING COSTS

15. If an asylum seeker fails to contribute towards their housing costs when required to do so, their NASS support may be discontinued for breach of conditions of support (see Regulations 16(4) and 20(1)(a) of the Asylum Support Regulations 2000) unless the person has a reasonable excuse. Such decisions must be taken at EO level or above.

REPORTING CASES WHERE IT APPEARS THE ASYLUM SEEKER IS BEING PAID BELOW THE RATE OF THE NATIONAL MINIMUM WAGE

16. Caseworkers who consider that an asylum seeker is being paid wages at a rate that is below the National Minimum Wage must report the matter to the Low Pay Commission, Central Information Unit. The fax number is 0191-225-3439.

17. The National Minimum Wage hourly rates are as follows:

Ages 18-21 £3.20 (£3.50 from 1 October 2001)
Ages 22 and over £3.70 (£4.10 from 1 October 2001)

18. The information that Caseworkers need to provide the Central Information Unit is evidence of hourly earnings below the National Minimum Wage, such as wage slips, the name and date of birth of the employed asylum seeker. Do not disclose cases that appear to comply with the National Minimum Wage.

Contact:

John Allen
Secretariat
3rd Floor
Voyager House

ANNEX A

THRESHOLD TABLE TO BE USED AS A GUIDE TO DETERMINE WHETHER A NASS SUPPORTED PERSON CEASES TO BE DESTITUTE WHEN THEY HAVE INCOME OR RECEIVE A BOOST IN CAPITAL

Type of applicant
Column 1:

CAPITAL THRESHOLD

[To be used when the applicant already in receipt of NASS support and living in NASS accommodation receives boost in capital]

Amount of capital in £'s which we expect would meet a persons essential living needs for 8 weeks

Column 2:

CAPITAL THRESHOLD

[To be used when the applicant already in receipt of NASS support and is living in private accommodation and receives boost in capital]

Amount of capital in £'s which we expect would meet a persons essential living needs for 8 weeks

Column 3:

EARNINGS THRESHOLD

[To be used when the applicant already in receipt of NASS support and living in NASS accommodation gains a regular income or earnings]

Average net weekly income in £'s (If the applicant's average weekly earnings exceeds the threshold and it is likely that the earnings will continue for 8 weeks then the applicant is no longer eligible)

Person aged 18 to 24
£1,010 £231.60 £126.25

Person aged 25 or over
£1,070.72 £292.32 £133.84

Couple
£2,015 £458.96 £251.97

Lone parent
£1,070.72 £292.32 £133.84

Child aged under 16
£1,026.00 £247.60 £128.25

Child aged 16 or 17
£1,032.40 £254 £129.05

ANNEX B

ASSESSING COSTS OF POSTAL ORDERS AND POSTAGE AND PACKING

Cost of Personal Cheque: £00.00

Table showing the Cost of Postal Orders:

Value Cost

£20.00 95p

£15.00 90p

£8.00 to £10.00 80p

£5.00 to £7.00 65p

£2.00 to £4.00 45p

50p to £1.00 25p

For lower denominations or awkward values the post office will attach postage stamps up to the value of 49p to increase the value of a postal order.

EG To make payment of 99p in postal orders the person will need to buy a 50p postal order at a cost of 25p plus 49p worth of stamps.

To purchase £5.79 in postal orders would require 1 x £5.00 PO (at a cost of 65p), 1 x 50p PO (at a cost of 25p) and 29p worth of stamps.

To Purchase £39.47 in postal orders would require 1 x £20.00 PO (at a cost of 95p) 1 x £15.00 PO ( at a cost of 90p), 1 x £4.00 PO (at a cost of 45p) and 47p worth of stamps.

Cost of Postage: £00.19

Cost of Stationery (Envelope & Paper): £00.10

--------------------------------------------------------------------------------

CALCULATING THE AMOUNT PAYABLE TO THE HOME OFFICE (EXAMPLES)

Level of Excess Income
less

(Cost of Postal Order plus postage plus stationary)
equals
Amount Payable

£39.45
-

(£2.30 +19p +10p = £2.59)

=

£36.86

£5.48
-

(65p + 19p + 10p = 94p)

=

£4.54

ANNEX C

TEMPLATE TO BE USED WHEN NASS DETERMINES THAT THE SUPPORTED PERSON SHOULD MAKE A CONTRIBUTION

Dear Mr/ Ms/ Mrs/ Miss

You have applied for and was given asylum support under section 95 of the Immigration and Asylum Act 1999 ("the Act")_.

The Secretary of State is required under Regulation 6 of the Asylum Support Regulations 2000 to take various matters into account in determining whether a person is eligible to receive asylum support, including any income or other support which is available to the person or his/her dependants. The Secretary of State has determined that your average weekly income is [enter amount £**.**].

Under Regulation 16 of the Asylum Support Regulations 2000 the Secretary of State may require a person to make payments by way of contributions towards the cost of provision of asylum support and to make the prompt payment of such contributions a condition subject to which asylum support is provided.

The Secretary of State has accordingly decided that you should make a contribution [enter amount £**.** [for cheque payment or] £**.**[for payment by Postal Order]] per week towards the cost of the asylum support for you [and your dependants]. This amount represents the difference between what you currently receive in income and what you would receive by way of vouchers were you [and your dependants] supported under section 95 of the 1999 Act without your additional income (This amount includes a reduction for the anticipated cost of making these payments by postal order if appropriate). The prompt payment of this contribution is a condition of your support. Should you breach this condition without reasonable excuse your support may be discontinued and any further application for support may not be entertained. (You should also note that if your bank does not honour a cheque payment, for example because of insufficient funds in your account, you will no longer be entitled to pay by cheque and all further contributions will have to be paid by Postal Order.)

You should make cheques or Postal Orders payable to "THE HOME OFFICE ACCOUNTING OFFICER" and send the payment to the address below:

The Finance Section
5th Floor
Voyager House
Croydon
Surrey
CR0 2AD

Yours sincerely

ANNEX D

TEMPLATE TO BE USED WHEN NASS DETERMINED THAT A SUPPORTED ASYLUM SEEKER SHOULD CONTRIBUTE TOWARDS THEIR HOUSING COSTS BUT THEIR CHEQUE WAS "REFERRED TO DRAWER" (BOUNCED)

Dear Mr/ Ms/ Mrs/ Miss

You were asked to contribute towards the cost of the asylum support provided to you under section 95 of the Immigration and Asylum Act 1999 ("the Act"), by making a weekly payment of [enter amount £**.** ]for cheque payment or[enter amount £**.**] for payment by Postal Order]].

You submitted a cheque for [enter amount £**.**] as your contribution towards the cost of your support. The cheque has been returned to the Home Office as "Refer to Drawer" and the required contribution has, therefore, not been paid. The prompt payment of your contribution is a condition of your support.

You must resubmit payment by means of a Postal Order for the sum of [enter Postal Order amount £**.**] or provide an explanation for not making the appropriate payment. If we do not receive a Postal Order payment or a satisfactory explanation for not making this payment by [insert date: date of letter plus five working days], your support may be discontinued and any further application for support may not be entertained.

All further payments that you are required to make should be made by means of Postal Orders, unless we inform you otherwise. All other means of payment will be returned to you and treated as unpaid.

You should make the Postal Orders payable to "THE HOME OFFICE ACCOUNTING OFFICER" and send the payment to the address below:

The Finance Section
5th Floor
Voyager House
Croydon
Surrey
CR0 2AD

Yours sincerely