Asylum seekers could be forced to pay up to £10,000 towards the cost of their accommodation and support once they start earning, Shabana Mahmood has announced. The full amount must be repaid before they can become eligible for settled status. Eligible adults will likely pay off an amount each month above a set threshold, similar to a student loan. Migrants need settled status, or indefinite leave to remain, to permanently live, work, and study in the UK.
Government spending and costs
The Government said it spent £4 billion on accommodation and support for asylum seekers last year. The Home Office estimates the average cost per person per night is £23.25 in dispersal accommodation and £144 in hotels, while subsistence payments range from £9.95 to £49.18 per person per week. Home Secretary Ms Mahmood described the cost as “too high”.
“We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so,” she added. “Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.”
Repayment and enforcement
Those liable for the cost who leave the UK will be required to pay in full if they want to return at a future date. The powers needed to recover the costs will be set out in the Immigration and Asylum Bill, which is to be introduced to Parliament on Tuesday.
Expert concerns
Dr Madeleine Sumption, director of the Migration Observatory at the University of Oxford, said it was likely that only a relatively small share of people granted asylum would actually earn enough to pay towards the scheme. It could also discourage asylum seekers from working once they get refugee status to avoid the cost. “The data suggests that unless thresholds were significantly below the minimum wage, a relatively small share of people granted asylum would earn enough to make contributions to the scheme,” she continued.
Political reaction
Shadow home secretary Chris Philp said: “It is flattering that Labour have adopted yet another policy put forward by the Conservative Party. This precise scheme was proposed by us in an amendment to the Immigration Bill last year, which Labour blocked.”
Other reforms and backlog
The Home Office is also planning to use more former military barracks to house thousands of asylum seekers in its quest to shut all asylum hotels by the next election. The number of people being housed in hotels has fallen to its lowest level since data was first reported in 2022. Other reforms include creating a “single route” that prevents migrants from appealing against a rejected claim and bringing further claims before their removal. The backlog of asylum appeals stands at 151,767, Home Office minister Lord Hanson of Flint said on Monday. Appeals are taking an average of 61 weeks to be resolved as of March 2026.
