People granted asylum in the UK could be required to repay around £10,000 towards the cost of the accommodation and financial support they received while awaiting a decision on their claims, under new government proposals.
The measures form part of the Immigration and Asylum Bill and are designed to recover support costs from adult migrants who are financially able to contribute once they begin earning.
Under the plans, asylum seekers who gain the right to work in Britain would be expected to pay a fixed fee before becoming eligible for permanent settlement.
Individuals whose asylum applications are refused and who subsequently leave the country would also be required to clear any outstanding repayments before being allowed to return.
Home Secretary Shabana Mahmood said the proposals would reinforce the principle that support comes with obligations.
She added: “Once people can contribute and repay the generosity of the British people, we expect them to do so.”
The repayment charge is expected to be set at £10,000, although the Home Office has yet to determine the income level at which migrants would begin making monthly contributions.
The legislation would give the home secretary authority to revise both the repayment amount and the earnings threshold in future, with ministers saying any changes would be designed to remain fair to taxpayers while ensuring migrants are not pushed into financial hardship.
Critics argue the proposals represent a significant tightening of the UK’s asylum framework.
Dr Madeleine Sumption, director of the Migration Observatory at the University of Oxford, said the changes would move the immigration system “in a more restrictive direction”.
“The government goal appears to be to tighten up that system as much as they can while still remaining compliant with international refugee law and human rights law,” she told BBC Radio 4’s Today programme.
The Home Office estimates that supporting asylum seekers cost taxpayers around £4 billion last year.
Current figures show the average nightly cost of housing an asylum seeker is £23.25 in private rented accommodation and £144 in hotel accommodation. Weekly subsistence payments range from £9.95 to £49.18 per person.
The Refugee Council strongly criticised the plans, describing them as both impractical and unfair.
Its director of external affairs, Imran Hussain, said, “The reason why many need asylum support is because the Home Office itself bans asylum seekers from working while their claims are being assessed.
“Asylum support is only given to people who are at risk of being destitute, so this new financial burden would only harm those who arrive on our shores with nothing.”
Questions have also been raised over how much revenue the government is likely to recover through the scheme.
The Migration Observatory pointed to relatively low employment and income levels among refugees, suggesting only a limited number of people would earn enough to make repayments.
Sumption said: “In 2023, for example, an estimated 13% of people granted refugee status five years earlier were earning at least £20,000, with the rest either not working or on lower earnings.
“The data suggests that unless thresholds were significantly below the minimum wage, a relatively small share of people granted asylum would earn enough to make contributions to the scheme.”
Home Office data shows that 24% of asylum recipients aged between 16 and 64 were employed during their first year in the UK between 2015 and 2023.
Employment rates increased to approximately 48% two years after refugee status was granted.
Among those working eight years after receiving protection, 37% were employed full-time, earning a median salary of £23,000, while only 40% earned above the minimum wage.
Shadow Home Secretary Chris Philp claimed the proposal mirrored a policy previously put forward by the Conservatives.
He said Labour had “adopted yet another” Conservative policy, adding, “This precise scheme was proposed by us in an amendment to the Immigration Bill last year, which Labour blocked.”
Ministers believe the Immigration and Asylum Bill will help establish what they describe as a firm but fair asylum system while reducing incentives for illegal migration.
However, several provisions in the legislation are expected to face resistance from Labour MPs concerned about some of its tougher measures.
The proposals come shortly after the Home Office announced plans to expand the use of former military barracks to accommodate thousands of asylum seekers, following the closure of 20 additional hotels in England.
The department also revealed that the legislation would introduce new “capped safe and legal” routes for refugees.
The scheme would allow organisations such as universities, community groups and businesses to sponsor refugees, with the aim of lowering costs to taxpayers.
