Migrant Hotel Costs Surge to £200 Per Night Amid Government Promises

The cost of housing migrants in taxpayer-funded hotels has escalated to nearly £200 per night, a development that contrasts with the Labour government's pledge to cease their use entirely by the end of the current parliamentary term. Since taking office in July, the government has aimed to repurpose old military sites, utilize houses in multiple occupation (HMOs), and expedite the asylum claims process to end expensive contracts with independent accommodation providers.

However, this goal has not yet been fully realized. A Home Office minister disclosed that the average nightly cost for asylum hotels reached £199 as of April, marking a 37% increase since October of the previous year, when the cost stood at £144.98 per night. This nightly expense, equivalent to approximately £1,400 per week per migrant, is nearly eight times the cost of housing individuals in rented dispersal accommodation, such as HMOs, which averages £25 per night.

The figures were detailed by Home Office minister Anne Turley in a letter to the home affairs committee. She explained that the surge in costs is attributed to the government continuing to pay for unoccupied rooms as hotel closures are implemented in phases. "As occupancy falls ahead of full site closure, the department continues to incur costs for some unoccupied rooms, which increases the average cost per person accommodated," Turley stated.

The number of migrants housed in hotels has seen a substantial decrease, falling from 36,273 at the end of September last year to 16,021 by the end of June this year. This is a significant reduction from the peak of 56,018 migrants in September 2023. The number of hotels in use has also declined, from 200 at the end of September last year to 160 by the end of June.

This situation arises as the Prime Minister faced criticism recently for announcing that migrant hotels would be exempt from a new tourist tax on hospitality. Regional mayors were granted the power to implement an 'overnight visitor levy' on stays in hotels, B&Bs, and holiday lets. Despite objections, the Labour government, led by figures like Andy Burnham, favored a percentage-based tax without a cap, with Labour-run areas expected to set it at 5%. A business group characterized this as a "kick in the teeth," warning of potential job losses and increased costs for holidaymakers.

However, the Department for Housing, Communities and Local Government clarified that these levies would not apply to taxpayer-funded migrant hotels, as they are classified as 'temporary accommodation.' This exemption has drawn criticism from the hospitality industry, with suggestions that it incentivizes hotels to house asylum seekers over paying guests. The Conservative Party has also condemned the move, calling it "utterly outrageous" that families on holiday would bear the brunt of the tax.

The government is actively working to transition migrants out of hotels and into alternative accommodations, including privately rented properties and former military bases. Currently, 160 hotels are being used for migrant accommodation, while an additional 73,068 individuals are housed in other forms of taxpayer-funded accommodation.