The Government is guilty of creating a generation of undocumented citizens without the rights that many people take for granted, the SNP Westminster leader has claimed.
Ian Blackford called on the Prime Minister to scrap fees for young people as she has done for the Windrush generation.
He argued youngsters who had grown up in the UK faced losing their lawful settled status because they simply could not afford the paperwork, adding that Home Office fees had risen by 148% since 2014.
The MP for Ross, Skye and Lochaber said it was "shocking" that up to 120,000 young people in this country had to wait 10 years and pay up to £10,000 to achieve permanent rights to remain.
Theresa May replied: "A minor who has indefinite leave to remain will have access to benefits and entitlements which put them on an equal footing to their British citizen peers, so a grant of British citizenship is not therefore required."
Raising the issue at Prime Minister's Questions, Mr Blackford said: "The Windrush scandal has taught us that the UK Government's hostile environment policy has targeted those who legally live here.
"Young people who have grown up in the UK and know of nothing else face losing their lawful settled status because they simply cannot afford the paperwork.
"Home Office fees have increased by 148% since 2014, these children have the right to be here, the UK is their home.
"I am giving the Prime Minister today, the opportunity, will she scrap these fees for young people as she has done for the Windrush generation?"
Mrs May responded that specific exemptions from application fees were provided to several groups with limited means such as stateless people, victims of modern slavery or domestic abuse, asylum applicants, and children who are looked after by a local authority.
She added that the Children's Act 1989 imposed a general duty on local authorities to promote the upbringing of children in need by providing a range and level of services appropriate to those children's needs regardless of their status.
Mr Blackford replied: "That simply is not good enough. We're talking about up to 120,000 young people in this country, we're talking about young people who live here, who have to wait 10 years and pay up to £10,000 to achieve permanent rights to remain, it is shocking.
"This Government is guilty of creating a generation of undocumented citizens without the rights that many of us take for granted.
"Will the Prime Minister change her policies which target young people and will she meet with me and (Stuart C McDonald, MP for Cumbernauld, Kilsyth and Kirkintilloch East) to resolve this issue?"
Mrs May said: "First of all he quotes a figure which I certainly don't recognise in terms of the costs that he suggests for an application for citizenship here in the UK.
"But I repeat the point that I have made that a minor who has indefinite leave to remain, will have access to the benefits and entitlements which put them on an equal footing to their British citizen peers, so a grant of British citizenship is not required in order to be able to have access to those rights and benefits."
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