UK Government to Close Asylum Seeker Hotels Early, Slashing Costs by £1 Billion
UK to close asylum hotels early, saving £1bn

The UK government is set to close hotels housing asylum seekers significantly earlier than initially planned, in a move that is projected to save taxpayers a staggering £1 billion. Home Secretary James Cleverly has announced a major acceleration of the programme, marking a substantial step in the government's strategy to manage asylum accommodation.

New official figures reveal that over 50 hotels will be returned to their communities by the end of January, with a total of 150 sites scheduled to be fully vacated in the coming months. This represents a rapid scaling down of the controversial and costly hotel accommodation system.

Substantial Savings for the Public Purse

The early closures are expected to deliver enormous financial benefits. The Home Office estimates the accelerated timetable will reduce costs by approximately £1 billion when compared to the previous forecast. This is on top of the £800 million in savings already anticipated from the original closure plan.

"We have always said the use of hotels was a short-term solution, and we are now able to close them faster than expected," a government spokesperson stated.

A Multi-Pronged Strategy

The success in closing the hotels is attributed to several key factors. The government points to a increase in the number of asylum caseworkers, which has sped up decision-making. Furthermore, the use of alternative sites like the former RAF base at Wethersfield and the barge Bibby Stockholm in Portland has provided additional accommodation capacity.

A notable decline in small boat crossings across the English Channel has also reduced the intake of new asylum seekers requiring immediate housing, contributing to the decreased reliance on hotels.

Ongoing Challenges and Future Plans

Despite this progress, the overall cost of the UK's asylum system remains high. The annual bill for housing migrants, including those in hotels and other facilities, is reported to be around £3.1 billion. The government maintains that its Rwanda relocation plan, currently held up in legal challenges, is a crucial deterrent for future illegal immigration and is essential for achieving long-term, sustainable savings.

The Home Secretary is expected to make a formal statement to MPs next week, providing further details on the closure schedule and the government's next steps in reforming the asylum accommodation system.