The cost of housing asylum seekers in hotels has soared to £8 million a day, according to the Home Office’s annual report published on Tuesday. This figure surpasses the £6 million a day that Home Secretary Suella Braverman cited in a Commons statement on Monday, highlighting the escalating financial pressure on the asylum system.
The annual report states: “We need to stop the boats to relieve the unsustainable pressure on our asylum system and accommodation services, which is costing over £3bn a year.” It adds that the Illegal Migration Act aims to deter illegal arrivals by enabling detention and swift removal, but acknowledges that legislative changes take time and there is no single solution.
The government has a legal duty to provide basic accommodation to asylum seekers, who cannot work while their claims are processed. Previously, hotels were used only for a few weeks before moving people to longer-term housing. However, a backlog of unprocessed claims—over 175,000 waiting for a decision as of June, up 44% from last year—has forced increased reliance on hotels.
Shadow Home Secretary Yvette Cooper condemned the costs, calling them “astronomical” and blaming the Conservatives for an “utter failure” to manage the system. She noted that hotel costs have risen by a third since Prime Minister Rishi Sunak promised to end their use, saying: “The Tories have busted the Home Office budget, they’ve broken the asylum system, and the British people are paying the price.”
A government source defended the spending, arguing it underscores the need to move migrants out of hotels and stop Channel crossings. The source pointed to the Rwanda asylum scheme, currently awaiting a Supreme Court judgment, as a way to “break the people smugglers’ business model”, and criticised Labour for potentially welcoming more asylum seekers.
