The UK government has announced new plans requiring asylum seekers who can afford to repay the cost of their support and accommodation to do so under the upcoming Immigration and Asylum Bill.
The Bill, which is being introduced to Parliament, will give the Home Office new powers to recover costs from adults who have received asylum support, including accommodation and subsistence payments, if they later have access to sufficient funds.
Under the proposal, eligible migrants could be required to contribute around £10,000 toward the overall cost of support they received while their asylum claim was being processed.
How the New Repayment System Would Work
According to the Home Office, the repayment would be made through a flat-rate charge. Eligible adults would pay a fixed monthly amount once their income or available funds rise above a set threshold.
The government says the repayment system will be designed so that migrants are not pushed into destitution. The Home Secretary will have the power to adjust both the charge and the income thresholds.
Different payment methods are expected to be available. The main method is likely to be direct payments to the Home Office, while the government is also exploring whether the tax and benefits systems could be used to collect payments.
Settlement Could Depend on Repayment
One of the most important parts of the proposal is that migrants will be required to repay the full amount before becoming eligible for settlement in the UK.
This means that people who have received asylum support and later qualify for a pathway to settlement may have to clear their repayment balance first.
The government also says that anyone who leaves the UK will still be expected to make the required payments if they wish to return to the country in the future.
Why the Government Is Introducing the Measure
Home Secretary Shabana Mahmood said the cost of asylum accommodation has become too high for British taxpayers. She said the government has already reduced asylum costs by around £1 billion, or approximately €1.16 billion, but believes those who are able to contribute should now be expected to do so.
She stated that receiving asylum support is a right but also carries responsibility. According to her, once people are able to contribute, they should repay part of the support provided by the British public.
The Home Office says asylum support and accommodation cost the taxpayer around £4 billion last year.
Current Cost of Asylum Support in the UK
The government says the cost of accommodation differs sharply depending on where asylum seekers are housed. Hotel accommodation remains far more expensive than dispersal accommodation.
| Type of Support | Estimated Cost |
| Dispersal accommodation | £23.25 per person per night |
| Hotel accommodation | £144 per person per night |
| Subsistence support | £9.95 to £49.18 per person per week |
| Expected repayment contribution | Around £10,000 |
The government has also said it is working to reduce asylum costs by ending the use of asylum hotels. Since April, 31 hotels have reportedly been closed, with asylum seekers moved into more basic accommodation, including former military sites and barges.
Employment Data Behind the Policy
The Home Office has also pointed to employment data for people granted asylum in the UK. According to government figures, around a quarter of people aged 16 to 64 who were granted asylum between 2015 and 2023 entered employment within the same calendar year they received status.
Two years after being granted refugee status, this figure rose to nearly 50 percent. The data also showed that among those employed eight years after receiving asylum, around 37 percent were in full-time work. Their median earnings were about £23,000 per year.
However, this remains below average earnings across the UK. The Office for National Statistics said in January 2026 that average regular earnings across the country were around £690 per week. Over a full year, this would equal about £35,880.
Even after deducting five weeks to reflect possible temporary or shift-based work without holiday pay, the annual figure would still be around £32,000.
Part of Wider Asylum Reform
The repayment proposal forms part of the wider Immigration and Asylum Bill, which the government describes as one of the most significant asylum reforms in a generation.
The government says the Bill is intended to create a “firm but fair” asylum system, reduce pressure on taxpayers, restore control to the immigration system, and reduce the pull factors behind illegal migration.
For asylum seekers who receive protection and later build financial stability in the UK, the new law would create a direct link between past public support and future settlement eligibility.
For those without the right to remain, the government says the measure will ensure they take responsibility for the financial cost of their stay in the country.