Families of failed asylum seekers in the United Kingdom could be offered as much as £40,000 to leave the country under a new trial scheme announced by Home Secretary Shabana Mahmood.
Mahmood explained that the government would pursue the forced removal of failed asylum seekers if they do not accept “incentive payments” of up to £10,000 per person, capped at four per family, within a seven-day window.
The scheme is expected to focus on around 150 families currently housed in taxpayer-funded accommodation, with the Home Office estimating that it could save £20 million if successful.
However, opposition voices have criticised the plan. The Conservatives and Reform UK warned that such payments could act as an incentive for people to enter the UK illegally.
Mahmood presented the initiative as part of her effort to make the “Labour case” for limiting support to certain asylum seekers during a speech to a left-leaning think tank on Thursday.
Currently, the government operates a voluntary returns programme under which asylum seekers who leave the UK of their own accord can receive up to £3,000 in financial support.
Highlighting the costs, Mahmood noted that housing a family of three in asylum accommodation can amount to £158,000 per year.
She described the proposed increased incentive payment as representing a “significant saving to the taxpayer,” drawing comparisons to reforms recently implemented in Denmark.
She added that the government is consulting on ways to remove families with children who refuse to leave voluntarily “in a way that is humane and effective,” arguing that failure to remove families had created “a perverse incentive” for people to cross the Channel with children.
The Refugee and Migrant Children’s Consortium, a coalition of 100 organisations, expressed concern that families would have “just a week to make a potentially life-changing decision” without adequate “time to access legal advice,” and warned that cutting support could leave children homeless.
Criticism also came from the political arena. Conservative shadow home secretary Chris Philp described the payments as “an insult to the British taxpayer.” Reform UK’s home affairs spokesman Zia Yusuf called the £40,000 payments “staggering” and “a prize for breaking in illegally,” despite his party also supporting financial incentives for voluntary deportations.
A government source defended the proposal, insisting the payments would not encourage illegal migration, noting that smugglers typically charge between £15,000 and £35,000 per migrant, making illegal travel more expensive than accepting the incentive.
In 2025, the UK received 82,100 asylum applications covering 100,600 individuals, of which 58% were refused. That same year, there were 28,004 voluntary returns, a 5% increase compared to the previous 12 months.
In her speech, Mahmood also said that asylum seekers who break the law or work illegally will be removed from government-funded accommodation and lose their support payments.
From June, the government plans to restrict accommodation and support to “those who genuinely need it,” though details of implementation are still pending.
While the Conservatives argued Mahmood should adopt “much further” measures, the Green Party accused her of echoing far-right rhetoric.
Meanwhile, the Refugee Council warned the plans could increase rough sleeping, potentially shifting costs to local councils and the NHS.
