Oral answer to question provided on Monday, 21 January 2008 in the House of Lords, by Lord West of Spithead (Labour).

Refugees: Loans

Answer: My Lords, the £3 per week taken from income-related benefits is a very reasonable amount. One can look at the circumstances and that could be adjusted if necessary. As regards getting back payments and loans, I was very concerned at the thought of using debt collection agencies; indeed, I was grateful for the question that was raised. There are very clear rules for the use of debt collection agencies. I am convinced that, when necessary, we can remove the need to pay back for a period, as long as the loan is repaid within five years.

This is an answer to the Oral question asked on Monday, 21 January 2008 by Lord Avebury (Liberal Democrat).

Question: My Lords, what was the Government’s response to the Merits Committee’s criticism of the scheme that it would be difficult for recipients to pay back even an amount as small as £3 per week, when it came on top of other deductions from benefits? Now that the Government are determining asylum applications within a maximum of six months, would they agree that £100 of every grant made under this scheme should be in the form of a grant, rather than a loan, over the six months?

Secondary information