North Yorkshire Council

Executive Member for Corporate Services and Assistant Chief Executive – Local Engagement

4 March 2024

Homes for Ukraine and Ukraine Permission Extension – thank you

payment top up

1.0       PURPOSE OF REPORT

1.1       To seek approval to extend the timescale of a previously agreed approach to the topping up of thank you payments for Homes for Ukraine (HFU) UK sponsors (for which we already have the funding allocated).

2.0       BACKGROUND

2.1       The HFU scheme launched in March 2022 with UK sponsors volunteering to accommodate individuals and families fleeing Ukraine.  In return the Government offered a thank you payment of £350 per month, to be administered by Local Authorities (LAs).  LAs are able to provide a top up to this payment from the tariff funds received for each individual arrival. Along with many other LAs, North Yorkshire Council (NYC) previously agreed to top up payments to £500 per month. The government then agreed to pay £500 for years two and three of sponsorship.  To date NYC has continued to top up year one payments in order to align payments across all years.

2.2       Initial visas on the HFU scheme were granted for three years (starting in March 2022). Therefore, on 4 February 2025 the Government launched the Ukraine Permission Extension (UPE) scheme which provides the opportunity for Ukrainian nationals and their immediate family members already in the UK on one of the Ukraine schemes, eligibility to apply to live in the UK for a further 18 months.  Applications can be made 28 days prior to the initial visa expiration date.

2.3       The Government has now announced that from the 1 April 2025 all thank you payments, both for the HFU visa term, and the UPE term, will reduce to £350.  Tariff funding guidance continues to allow LAs to top up thank you payments during the HFU and UPE duration.  No additional funding will be provided to support the UPE, but NYC is in receipt of adequate funds to provide an ongoing top up.

3.0       THE DECISION

3.1       It is necessary to take a local decision around the continued top up to the monthly sponsor thank you payments (from £350, to £500 per month).

3.2       A decision has been taken previously to top up year one payments, but this report is seeking agreement to maintain this through years two and three of HFU (note from February 2024 HFU visas are issued for a reduced period of 18 months), and the 18 months of UPE.

4.0       CONSULTATION UNDERTAKEN AND RESPONSES

4.1       Informal feedback from current HFU sponsors suggests that some would be unable to continue if the monthly payments were to drop to £350 per month.  A full consultation has not been undertaken.

5.0       ALTERNATIVE OPTIONS CONSIDERED

5.1       One option is to provide no top up to thank you payments and continue to administer the payment, as funded by the Government, at £350 per month.

5.2       A further option is to top up during the HFU visa terms, but not the UPE term.

5.3       There is a risk of additional homelessness with both of the above options.

6.0       IMPACT ON OTHER SERVICES/ORGANISATIONS

6.1       Likely increased homelessness would place pressure on Housing Options staff and temporary accommodation options, which are already stretched.

6.2       A move to new accommodation can also have significant impact on schooling for children if a move of schools is necessary as a result.

7.0       FINANCIAL IMPLICATIONS

7.1       The top up to the thank you payment is likely to be significantly less than the cost of temporary accommodation, should that be required.

7.2       The cost of the ongoing top up for HFU and UPE thank you payment top up is expected to be between £300,000 and £350,000 during the financial year 2025-2026.  The ring-fenced budget received as HFU tariff for each individual arrival is sufficient to cover this.  The budget is not ring-fenced to a particular financial year and can therefore be used to cover subsequent years, if agreed.

8.0       LEGAL IMPLICATIONS

8.1       No legal implications have been identified.

9.0       EQUALITIES IMPLICATIONS

9.1       Ukrainian Nationals, who have been granted permission to stay in the UK are potentially vulnerable given language barriers and the trauma experienced due to the war.  The risk of their sponsorship ending at short notice could exacerbate this.

9.2       Maintaining sponsorship arrangements will reduce impact on other services and homeless cohorts.   

10.0     CLIMATE CHANGE IMPLICATIONS

10.1     No direct climate change implications have been identified.  However, if families with school-aged children are forced to move to new areas, it will likely increase journey time to current schools.

11.0     PERFORMANCE IMPLICATIONS

11.1     LAs are required to report on homelessness – this measure would increase if a number of sponsorship arrangements are not maintained.

12.0     RISK MANAGEMENT IMPLICATIONS

12.1     NYC currently holds adequate ring-fenced funds to cover the cost of the ongoing thank you payment top up and as such it is felt that there is a greater financial risk associated with not providing this.

13.0     REASONS FOR RECOMMENDATIONS

13.1     To value the ongoing generosity of UK sponsors who are providing accommodation to Ukrainian nationals fleeing war, it is felt that an ongoing top up to the monthly thank you payment for UK sponsors, is good use of existing tariff funds already received by NYC.

13.2     This top up is likely to sustain accommodation arrangements, especially for those who will struggle to secure private rental or social housing, thereby reducing pressure on already stretched council services.

14.0	RECOMMENDATIONS
	i) Use existing HFU tariff funds received to top up sponsor thank you payments for years two and three, where relevant, of the visa term (decision already made to top up year one). ii) Use existing HFU tariff funds received to top up UK sponsor thank you payments during the UPE (18-month period beyond HFU).

Report Author – Lucy Moss-Blundell, Migrant Programmes Manager