Asylum seekers in the UK will be required to repay approximately £10,000 towards their state-funded living costs or face denial of settled status, under new legislation set to be debated by MPs on Tuesday. The means-tested scheme, included in the immigration and asylum bill, has been likened to student loans by officials.
Home Secretary Shabana Mahmood defended the plan, stating: '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.' The Home Office confirmed that the charge could be adjusted by the home secretary and must be paid in full before eligibility for settlement.
Charities have condemned the proposal, calling it a 'tax on refugees.' Imran Hussain of the Refugee Council said: 'Imposing what amounts to an extra tax on refugees, who the Home Office accepts have arrived here after fleeing persecution, torture and war, is unfair, impractical and makes it much harder for families to rebuild their lives.' Zoe Dexter of the Helen Bamber Foundation described it as 'more performative cruelty.'
Experts question the scheme's cost-effectiveness. Madeleine Sumption of the University of Oxford’s Migration Observatory noted that less than 15% of refugees earn over £20,000 five years after being granted asylum, meaning 'a relatively small share of people granted asylum would earn enough to make contributions.' She added that the scheme could discourage work or push claimants towards alternative accommodation.
The Home Office has not yet provided a full cost breakdown or income thresholds, which will be set in secondary regulations. The bill also addresses the application of Article 8 of the European Convention on Human Rights in immigration cases and strengthens age assessments, while amending the modern slavery framework to prevent late claims.
