Steve McCabe – 2016 Parliamentary Question to the Foreign and Commonwealth Office

The below Parliamentary question was asked by Steve McCabe on 2016-09-13.

To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to the Answer of 5 September 2015 to Question 43633, what the terms are of his Department’s emergency loan agreement for British nationals overseas who require assistance from public funds to pay for repatriation; and what provision his Department makes for people who cannot afford the repayment conditions.

Mr Tobias Ellwood

When a British national (BN) enters into an emergency loan agreement with the Foreign and Commonwealth Office (FCO) they sign a form to declare that they have exhausted all other methods of helping themselves, and accept the sum of the debt in its entirety. By signing the form, the BN is acknowledging that if they do not repay the loan within 6 months, the remaining balance will be subject to a surcharge of 10%; and that the total amount loaned to them must be repaid within five years. Failure to repay the debt may result in legal proceedings to recover monies owed.

In most cases, people are also required to agree to give up their passport. In all cases they must acknowledge that Her Majesty’s Passport Office will not process an application for a new passport until the debt is paid in full. They must also consent for the Department for Work and Pensions to release to the FCO such information as may be relevant in respect of any non-payment.

We know that some individuals face difficulties in repaying their loan. When agreeing to the terms of the loan agreement we advise people to contact the FCO upon their return to the UK to discuss the options for loan repayment.