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The number of hotels used to accommodate asylum seekers in the UK has recently been reduced by eleven, lowering the total from around 400 at its highest point to 185. Home Office Minister Alex Norris attributed this decrease to a rise in removals of individuals without the right to remain in the country and the relocation of others to alternative facilities, including military barracks. Norris acknowledged that asylum hotels have generated significant frustration among local communities and acted as a pull factor, encouraging illegal arrivals.
The Conservative Party criticized the current administration, accusing it of simply shifting asylum seekers from hotels into residential apartments as a way to obscure the reality of the situation. Asylum seekers typically face a 12-month ban on working while their claims are under review. When they cannot find their own accommodation, the Home Office is obligated by law to provide housing. The use of hotels for this purpose ballooned in 2020, primarily due to delays in processing asylum claims and a shortage of long-term housing options.
This approach has sparked controversy, including protests from affected communities and legal actions by local councils, alongside concerns over the financial cost. Government spending on hotel accommodation for asylum seekers was reported at £2.1 billion for 2024-2025, down from £3 billion the previous year. According to data released in December, approximately 103,426 people were housed in asylum accommodations, with around 30,657 residing in hotels and the majority living in dispersed community housing.
The Labour government has committed to ending the use of hotels for asylum seekers by July 2029, with recent closures expected to save nearly £65 million annually. The eleven closed hotels include locations such as the Crewe Arms Hotel in Cheshire and the Holiday Inn Heathrow. Norris highlighted that moving away from hotel accommodation could reduce the incentive for people to attempt illegal crossings of the English Channel, quoting traffickers as promoting the UK as a place to live in hotels and work unlawfully. Despite promises to crack down on trafficking gangs following the 2024 election, small boat arrivals remain high, with over 100,000 people reaching the UK in 2025. The government plans to increase the use of large-scale, basic accommodation centers to phase out hotels, although these moves have faced local opposition and criticism from various political figures
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