Prime Minister Theresa May has announced that the Government is scrapping the charge for EU citizens wanting to remain in the UK after Brexit - a move welcomed by the Catholic Church.

The settlement scheme is open to EU citizens who have lived in the UK for five years or more but the £65 fee to apply was hugely unpopular, with the Catholic Church last December calling it 'unprincipled' and a barrier to low income families.

The scheme is in its pilot phase and is due to be rolled out at the end of March. 

The Prime Minister's latest announcement on her Brexit plans means millions of EU citizens living in the UK no longer have to pay the fee to secure the right to remain in the country after 29 March - the date the UK is due to leave the EU. 

'I can confirm today that when we roll out the scheme in full on 30 March, the government will waive the application fee so that there is no financial barrier for any EU nationals who wish to stay,' said May.

'Anyone who has applied during the pilot phase will have their fee reimbursed.'

Bishop Paul McAleenan, the Catholic Church's lead bishop for migration and asylum, welcomed the decision.

'I am pleased that the government has abandoned plans to charge EU citizens for securing their existing rights,' he said

'As I conveyed to the immigration minister earlier this year, such charges would not only be unjust, but would also create an unnecessary barrier for many people accessing the settlement scheme.

'The Church stands in solidarity with all EU citizens who have made their home here and we will continue to engage with the government as the scheme is implemented.'

The decision was confirmed by May in her statement to MPs on Brexit Plan B in which she also promised changes to the Irish backstop. 

After the humiliating defeat of her original Brexit deal, May has until 21 January to table a motion in the Commons setting out her Brexit Plan B.

She has continued to dismiss calls for a second referendum and an extension to Article 50 that would delay Britain's departure from the EU, and will also not rule out a no-deal Brexit.