Reprinted from the Private Eye – June 9 2021
As hundreds of desperate asylum seekers are still struggling to feed themselves and their families over two weeks after the failed introduction of new pre-paid cash cards, Priti Patel faces tricky questions over the choice of the new private contractor responsible for the chaos.
The Home Office insisted Prepaid Financial Services (PFS) was appointed after competitive tendering and “due diligence checks”. However, PFS has been under investigation by the payments systems regulator since October 2017 over claims it was part of a cartel operating welfare payments on behalf of local authorities to the homeless, victims of domestic violence and other vulnerable members of society. In March, two months before it took over the Home Office asylum seekers’ contract and following damning provisional findings by the regulator, PFS alongside Mastercard and Allpay admitted liability for breaching competition rules. They have agreed to pay £32m maximum penalties as part of a settlement.
Last month it also emerged that PFS, now owned by the Australian fintech giant, EML Payments, is at the centre of investigations by the Central Bank Of Ireland, which has raised “significant regulatory concerns” over its anti-money laundering and counter terrorism financing, risk and control governance. PFS had moved its European services to Ireland last year, because of Brexit. Until then it had been entirely regulated by the pisspoor Financial Conduct Authority.
Avoiding questions about what checks were made and exactly when agreements with PFS were finalised – dates for the new PFS card scheme kept being pushed back – the Home Office statement only said it “takes any allegations of wrongdoing very seriously” and “will investigate alongside standard contract management activities”.
None of this, of course, helps the hapless asylum seekers forced to go hungry after their pre-paid “Aspen” debit cards switched from service giant Sodexo, who has run the service since 2000, to PFS.
Even when they work, Aspen cards provide only £39.63 per week per person for food, clothing and toiletries; a mere £8 if asylum seekers live in catered accommodation. With most forbidden from taking a job, it’s a hand to mouth, and often to foodbank existence, at the best of times.
When the new cards failed, initially leaving over 20,000 without proper support, it was one of the worst asylum crisies charities had faced, said Robinha Qureshi, of Positive Action in Housing. Cards had been sent to the wrong addresses, had the wrong names and inaccurate activation details. Even those that worked often did not have any money on them or insufficient amounts. Parents were going without food to feed their children, others were desperate for baby milk and nappies. The Migrant Help emergency line was overwhelmed.
Many asylum seekers have only managed to survive thanks to charities, churches and other volunteers around the country who launched emergency appeals and provided food parcels and vouchers.
The Home office said that replacement cards are being provided, emergency cash and support was being made available through Migrant Help, charities and accommodation providers and welfare checks were also being made to “ensure all are supported in the new system”. So that’s all right then!