UNIPA News (London) 30 June-The UK government has announced plans to require asylum seekers who secure employment to repay up to £10,000 toward the cost of the accommodation and financial support they received while their claims were being processed.
The proposal, which forms part of the Immigration and Asylum Bill due to be introduced to Parliament on 30 June, would require eligible individuals to repay the amount through monthly deductions from their earnings once their income exceeds a threshold that has yet to be determined.
Under the proposed system, asylum seekers would have to clear the outstanding balance before becoming eligible for Indefinite Leave to Remain (ILR). The Home Secretary would also have the authority to adjust the repayment amount. Individuals who leave the UK before repaying the debt would be required to settle the balance in full if they later seek to return.
Home Secretary Shabana Mahmood said the measure is intended to reduce the financial burden of the asylum system on taxpayers while ensuring that those who are able to contribute do so after entering the workforce.
According to the Home Office, asylum support costs reached £4 billion last year. Official figures show that housing an asylum seeker costs an average of £23.25 per day in dispersal accommodation and around £144 per day in hotel accommodation. Weekly subsistence payments range from £9.95 to £49.18 per person.
The government said it has already reduced asylum-related costs by approximately £1 billion but argued that further measures are needed to improve the sustainability of the system.
Migration experts have questioned the financial impact of the proposal. Madeleine Sumption, Director of the Migration Observatory at the University of Oxford, said relatively few refugees are likely to earn enough to make significant repayments unless the earnings threshold is set at a low level.
She said the overall benefit to public finances is expected to be limited because the scheme targets a predominantly low-income population. Sumption also suggested the policy could discourage some people from accepting government accommodation or reduce incentives to work after being granted refugee status due to the additional financial obligation.
Human rights organisations have criticised the proposal, arguing it could hinder the integration of refugees. Zoe Dexter of the Helen Bamber Foundation said many asylum seekers arrive in the UK after fleeing conflict, persecution or violence with few or no financial resources, and warned that imposing debt at the start of their new lives could make rebuilding more difficult.
The announcement comes as the Home Office continues efforts to reduce reliance on hotels for asylum accommodation. The department has also confirmed plans to expand the use of former military sites to house asylum seekers as part of its objective to phase out hotel accommodation before the next general election.
The Immigration and Asylum Bill is also expected to introduce wider reforms, including a single appeals process designed to prevent multiple legal challenges after an asylum claim has been rejected.
