Double payments to Ukrainian refugee hosts amid cost-of-living crisis – minister

Monthly payments to sponsors of Ukrainian refugees should double to help them carry on hosting for longer than six months while the cost of living spirals, the minister responsible has said.

Around 25,000 offers of accommodation from hosts under the Homes for Ukraine scheme have been taken up so far, with an average of three Ukrainians living in each home, Lord Richard Harrington said.

Six months on from the start of the Russian invasion, the Government is asking existing hosts to extend their generosity and appealing for new sponsors to step forward.

It comes amid a deepening cost-of-living crisis, with energy bills expected to soar by 80% going into winter, rocketing inflation and rising interest rates.

Councils have also warned that homelessness could rise if initial six-month placements with hosts end without other options in place.

Lord Harrington said he has been lobbying the Treasury “very hard” to double the £350-a-month “thank you” payment for sponsors who house refugees for longer than half a year – the minimum period expected of hosts.

He told the PA news agency: “The costs… they’re paying maybe a big chunk of rent themselves, the mortgage payments have gone up and everything, and I think it’s perfectly reasonable, in my view, to increase the amount that we’re paying them.”

Wednesday marks six months since the start of the war in Ukraine.

More than 115,000 Ukrainians have arrived in the UK under its visa schemes, according to latest Government figures, including around 81,700 refugees under the sponsorship scheme.

Around 4-5,000 people are arriving each week, Lord Harrington said.

He said the Government has emailed everyone who initially expressed an interest in the sponsorship scheme, to see if they are still interested in taking part if they are not already hosting.

He expects roughly 50,000 of the 200,000-plus people who registered their interest initially will go on to be hosts.

In particular, the Government wants to recruit extra hosts in areas close to where refugees are currently being sponsored.

This would mean refugees are matched with new hosts nearby so they do not need to leave communities where they have started putting down roots.

“I’m not worried about the shortage of offers; I’m more concerned that they’re in the right area,” he added.

Lord Harrington said his priority is to stop people becoming homeless, and he is hoping to achieve that by encouraging hosts to continue for longer with existing placements, recruiting new sponsors, and enabling refugees to move into the private rented sector.

So far, more than 1,300 Ukrainian single households and families have been assessed as homeless or threatened with homelessness as of July 29.

He said he has met with groups representing landlords to ask if they will waive reference requirements for Ukrainian refugees.

He added that some councils have said they will act as guarantors for those wanting to rent homes, which he is trying to expand.

Lord Harrington said: “I suspect some of them will need an extra budget to do it, but again, I can argue to the Treasury – it’s my job to say: ‘Well, you actually save money, because people then are not becoming homeless’.”

The minister is also asking for extra funding money for English language lessons, which he said are the “key to employment”.

The amount being requested is in the “low tens of millions”, he said, adding: “It’s critical. We will get that money back because people get into employment”.

The Treasury said the monthly thank you payments for hosts are to “recognise their generosity”, and do not affect benefit entitlement nor council tax status.

A spokeswoman said: “We have already acted to make sure these payments are exempt from tax, and continue to monitor and review the support provided under the scheme.”

The Sanctuary Foundation, a charity which is helping support Ukrainian refugees and sponsors, is launching a campaign – Not Too Late To Host – with the matching service Opora to encourage more people to become sponsors.

Sanctuary Foundation director Dr Krish Kandiah said the need for hosts is “even more desperate” now.

He said: “War has spread across the country over the past six months and lives have been torn apart.

“Neighbouring countries are struggling to cope. This is why we are urging more British people to welcome Ukrainians into their homes.”

Lisa Nandy, Labour’s shadow levelling up secretary, said the Conservatives’ “inaction” on the cost-of-living crisis means thousands of hosts “could be left out of pocket for opening up their home”.

She added: “If the Government do not act now, they will risk a huge number of Ukrainian refugees becoming homeless this winter.”