Asylum seekers face a new £10,000 charge for their housing, following a significant policy change introduced by Shabana Mahmood. The Home Secretary will present a bill on Tuesday outlining a fixed fee to cover accommodation and support during the asylum process. This cost must be repaid before full settlement rights are granted.
Critics have condemned the move as further cruelty towards vulnerable individuals escaping persecution. The overhaul proposed by Mahmood involves substantial changes to the asylum system, such as replacing judges with public members for appeals decisions.
Under the Immigration and Asylum Bill, the Home Office will gain authority to reclaim expenses from adult asylum support recipients. The bill’s introduction to Parliament responds to the push to phase out asylum hotels and streamline the asylum process.
Mahmood emphasized the need for asylum seekers to contribute financially, citing the high burden on British taxpayers. The new legislation aims to ensure recipients of asylum support fulfill their responsibility to repay the assistance provided.
It is anticipated that individuals will make monthly payments until settling the debt, with exploration into utilizing the tax and benefit system for debt recovery. Those departing the UK must clear the full amount if they plan to return. Current accommodation costs average £23.25 per night in dispersal centers and £144 in hotels, while subsistence payments range from £9.95 to £49.18 per person weekly.
The proposed changes aim to enable asylum recipients to give back to the community that supports them. Statistics show that a significant portion of working-age asylum grantees secure employment shortly after receiving refugee status. The new rules grant Indefinite Leave to Remain (ILR) to individuals who haven’t paid the £10,000 fee, although they are not compelled to leave the country.
Charities have strongly criticized the plan, deeming it unjust to burden asylum seekers with debt as they rebuild their lives. The legislation includes the establishment of an Independent Immigration Appeals Authority (IIAA) to handle appeals, aiming to address the overwhelmed appeals tribunal system.
Mahmood’s focus is on creating legal pathways for genuine refugees while closing loopholes that have been exploited. The Home Office’s recent announcement of utilizing ex-military sites to accommodate asylum seekers aligns with the ongoing efforts to manage the asylum system effectively.

