Asylum seekers in the UK will be required to repay approximately £10,000 of state-funded living costs or risk being denied settled status, under new legislation to be debated by MPs on Tuesday. The means-tested scheme, included in the immigration and asylum bill, has been criticised by charities as a tax on refugees fleeing war, torture and famine.
Home Secretary Shabana Mahmood announced the plans as Labour faces pressure to reduce the £4bn annual spending on asylum accommodation and support. “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,” she said.
The Home Office confirmed that successful asylum seekers deemed to have sufficient funds will be charged a flat rate, with the amount adjustable by the home secretary. Migrants must repay the full amount before becoming eligible for settlement. However, immigration experts note that less than 15% of refugees earn over £20,000 five years after being granted asylum, suggesting the financial impact will be limited.
Charities have condemned the move. Imran Hussain of the Refugee Council called it “unfair, impractical” and likely to hinder families rebuilding their lives. Zoe Dexter of the Helen Bamber Foundation described it as “performative cruelty,” citing a lack of detail and a credible plan to address asylum system delays.
The scheme’s cost-efficiency depends on income thresholds, which will be set in secondary regulations. Madeleine Sumption of the Migration Observatory warned it could discourage work or push asylum seekers towards alternative accommodation. The Home Office has yet to provide a full cost breakdown.
