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The UK government has announced that individuals granted asylum will have to repay approximately £10,000 for the costs associated with their accommodation and support once they begin earning an income. This repayment scheme will be part of the forthcoming Immigration and Asylum Bill, which is scheduled for presentation to Parliament on Tuesday. Adults with sufficient financial means will be expected to gradually pay back the amount, which must be settled before they become eligible for permanent settlement in the country.
These new regulations will apply to asylum seekers who have obtained the right to work in the UK. Home Secretary Shabana Mahmood emphasized that the changes signify that “asylum support is a right, but it is also a responsibility.” She stated, “Once people can contribute and repay the generosity of the British people, we expect them to do so.” The plan involves a fixed repayment amount—anticipated to be set at £10,000—once migrants reach a certain income level, though the government has yet to specify the minimum earnings required before monthly payments must begin.
The Home Office retains the authority to modify both the repayment amount and income thresholds to ensure the system remains fair to taxpayers without pushing migrants into financial hardship. The policy will also extend to those whose asylum claims have been denied, provided their earnings meet the predetermined government threshold. Last year, the government spent about £4 billion from public funds on supporting asylum seekers. According to the Home Office, the average cost to house an asylum seeker for one night is £23.25 in government-owned accommodations and £144 in hotels. Additionally, weekly subsistence payments range between £9.95 and £49.18 per individual.
The Refugee Council criticized the proposed repayment plan, describing it as “unfair, impractical” and characterizing it as an additional tax on refugees. Imran Hussain, the organization’s director of external affairs, warned that the measure would “make it harder for families to rebuild their lives and stand on their own feet.” He pointed out that asylum seekers are often prevented from working while their cases are processed, making it difficult for them to repay such sums. Dr. Madeleine Sumption from the University of Oxford’s Migration Observatory also questioned how much revenue the government could realistically recover, noting low employment and earning rates among refugees. In 2023, only about 13% of those recognized as refugees five years earlier earned a salary of £20,000 or more, with the majority either unemployed or earning less. This data suggests that unless income thresholds are set far below minimum wage, only a small portion of asylum recipients would be financially capable of repaying the costs.
According to the Home Office, roughly 25% of asylum recipients aged 16 to 64 were employed within the same year they were granted status, increasing to 50% two years later. Among those still employed eight years after receiving refugee status, 37% had full-time jobs with median earnings around £23,000; yet only 40% earned above the minimum wage. Shadow Home Secretary Chris Philp remarked that the Labour Party had “adopted yet another” Conservative policy, noting that the very scheme was previously proposed by Labour in an amendment to the Immigration Bill but was blocked. The government hopes that the broader Immigration and Asylum Bill will establish a balanced yet firm asylum framework and reduce incentives for illegal migration. Nonetheless, some Labour MPs are expected to oppose certain stringent provisions in the bill.
In parallel developments, the Home Office disclosed plans to use additional former military barracks to accommodate thousands of asylum seekers, following the closure of 20 hotels in England that previously housed migrants. The new immigration law will also introduce “capped safe and legal” routes for refugees, enabling partnerships with universities, community groups, and businesses to sponsor individuals, thereby lowering the financial burden on taxpayers
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