Britain’s Labour government will require successful asylum seekers to repay around £10,000 towards the cost of their accommodation and support before they can qualify for permanent settlement, under legislation due to be introduced to Parliament this week.
Home Secretary Shabana Mahmood said the measure is intended to reduce the cost of Britain’s asylum system after the government spent around £4 billion last year housing and supporting more than 107,000 asylum seekers.
However, Migration researchers have questioned whether the policy will significantly reduce the burden on taxpayers. Oxford University’s Migration Observatory said only around 13% of refugees granted asylum five years earlier earned more than £20,000 a year, meaning relatively few are likely to repay the full amount. It also warned the scheme could discourage some migrants from taking paid work because repayments would effectively increase their tax burden.
Under the proposals, migrants granted asylum will be expected to repay a flat-rate sum through a means-tested system similar to student loan repayments once they begin earning enough. Those who fail to clear the debt will not be eligible for indefinite leave to remain in the UK. The charge will apply regardless of whether they were housed in hotels, shared accommodation, or former military bases while their claims were processed. Rejected asylum seekers who are removed from Britain would also be barred from returning unless they have repaid the debt.
“The cost of asylum accommodation on the British taxpayer is too high,” Mahmood said. “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.”
According to Home Office figures, supporting and accommodating asylum seekers cost taxpayers around £4 billion last year. Hotel accommodation alone costs an average of £144 per night, compared with £23.25 for standard dispersal housing.
The measures form part of a broader Immigration and Asylum Bill that will also tighten the use of the European Convention on Human Rights in immigration cases, strengthen age assessments, curb late modern slavery claims, and introduce a fast-track appeals system intended to speed up deportations.
The Telegraph reported that Mahmood has drawn inspiration from Denmark’s asylum system. Alongside the repayment scheme, ministers are also considering requiring asylum seekers with significant assets, such as cars, e-bikes, or private savings, to contribute towards the cost of their state-funded accommodation.
