The Home Office is preparing to close down another 11 asylum hotels in the coming week, accelerating efforts to phase out hotel accommodation for irregular migrants entirely. This move aligns with the government's broader strategy to address illegal immigration more swiftly and reduce reliance on temporary lodging solutions.
Government's Plan to End Hotel Accommodation
The closure of these controversial hotels is a key component of the government's initiative to eliminate hotel stays for asylum seekers altogether. This development is connected to an upcoming meeting this week regarding a new contract for asylum accommodation, which aims to transition to more permanent and basic housing options.
Controversy and Protests Surrounding Asylum Hotels
Asylum hotels have frequently attracted right-wing anti-migrant protesters, with tensions often centred on allegations of attacks by asylum seekers on women and girls. A notable example is The Bell in Epping, which became a focal point for far-right demonstrations. The local Tory-led council attempted to block its use as a holding facility for asylum seekers awaiting application processing, but these efforts were unsuccessful.
According to the latest government statistics, approximately 200 hotels are currently in use, housing around 30,000 asylum seekers. Additionally, more than 70,000 other asylum seekers reside in alternative accommodations, such as shared housing or military barracks, highlighting the scale of the issue.
New Asylum Accommodation Contracts
The Home Office is scheduled to host a private event this week, described as an "industry day" for potential future providers of asylum accommodation. Details of the time and venue have not been disclosed, and attendees are required to sign a non-disclosure agreement (NDA), adding a layer of secrecy to the proceedings.
Contract Details and Financial Implications
This meeting is understood to relate to the re-tendering of asylum contracts, set to run from 1 September 2029 until 31 August 2036, with a possible extension to 31 August 2039. The new contract, known as Future Asylum Contracts Accommodation, is valued at approximately £10 billion and is designed to shift away from hotel dependency.
Controversially, the Home Office funds part of asylum accommodation through the already reduced overseas aid budget, under the practice known as "in donor refugee costs." These costs have seen a decrease, from around £2.8 billion in 2024 to £2.4 billion in 2025, reflecting ongoing adjustments in spending.
Government Response and Progress
When approached for comment on these claims, the Home Office did not respond directly. However, a spokesperson stated that the government is focused on removing incentives for illegal migrants and increasing removals of those without the right to remain. They emphasised the shift towards basic accommodation, including ex-military sites, as part of this strategy.
The spokesperson highlighted that the population in asylum hotels has fallen by nearly 20 percent in the last year and by 45 percent since the peak under the previous government, resulting in cost savings of nearly £1 billion. This progress underscores the ongoing efforts to reform asylum accommodation and reduce associated expenses.
