Adults granted asylum in the United Kingdom will be required to repay around £10,000 toward the cost of their accommodation and support once they begin earning, according to new government regulations. These rules are part of the forthcoming Immigration and Asylum Bill, set to be introduced to Parliament on Tuesday.
The repayment obligation will apply to individuals with refugee status or indefinite leave to remain, enabling them to live and work in the UK. The debt must be settled before they become eligible for settled status. Home Secretary Shabana Mahmood stated that the changes aim to underscore that "asylum support is a right, but it is also a responsibility." She added, "Once people can contribute and repay the generosity of the British people, we expect them to do so."
Under the proposed system, migrants earning a specified amount will be obligated to repay a flat sum, anticipated to be £10,000. The Home Office has not yet detailed the earning thresholds required for these installment payments. The home secretary will retain the authority to adjust the charge and repayment thresholds to ensure fairness to taxpayers and prevent any migrant from facing destitution.
Last year, the Home Office reported that approximately £4 billion of taxpayer funds were allocated to supporting asylum seekers. The average daily cost for housing an asylum seeker in government-provided accommodation is £23.25, rising to £144 in hotels, with weekly subsistence payments ranging from £9.95 to £49.18 per person.
Critics have voiced concerns about the new policy. The Refugee Council described the plans as "unfair, impractical" and akin to an "extra tax on refugees," potentially hindering families from rebuilding their lives. Imran Hussain, the council's director of external affairs, highlighted that many asylum seekers require support because the Home Office restricts their ability to work while their claims are processed. He argued that imposing this financial burden would disproportionately affect those arriving with no financial resources.
The Migration Observatory at the University of Oxford questioned the financial feasibility of the scheme, citing low employment and earning rates among refugees. Dr. Madeleine Sumption noted that in 2023, an estimated 13% of individuals granted refugee status five years prior were earning at least £20,000 annually, with the remainder earning less or not working at all. She suggested that unless repayment thresholds were set significantly below the minimum wage, only a small fraction of asylum recipients would earn enough to contribute to the scheme.
Home Office data indicates that by the calendar year of receiving refugee status, a quarter of individuals aged 16 to 64 granted asylum between 2015 and 2023 were employed. This figure increased to 50% two years after gaining refugee status. Among those employed eight years post-refugee status, 37% worked full-time with median earnings of £23,000, and only 40% earned above the minimum wage.
Shadow home secretary Chris Philp commented that Labour had adopted a Conservative policy, noting that a similar scheme was proposed by his party in an amendment to the Immigration Bill last year, which Labour reportedly blocked. Ministers hope the Immigration and Asylum Bill will establish a stringent yet equitable asylum system and reduce incentives for illegal migration. However, certain strict measures within the bill are anticipated to face opposition from some Labour Members of Parliament.
In related news, the Home Office recently announced plans to utilize former military barracks for housing thousands of asylum seekers, following the closure of 20 hotels in England. The new immigration legislation is also expected to introduce new "capped safe and legal" routes for refugees, allowing organizations such as universities, community groups, and businesses to sponsor individuals, thereby potentially reducing costs for taxpayers.