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Asylum seekers granted refuge in UK could be required to repay £10,000 under new government plans

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Asylum seekers granted refuge in UK could be required to repay £10,000 under new government plans

People granted asylum in the UK could soon be required to repay around £10,000 to cover the cost of the accommodation and financial support they received while their claims were being processed, under proposals set out in the government’s forthcoming Immigration and Asylum Bill.

The legislation would give the Home Office new powers to recover a flat-rate contribution from adults who are granted refugee status and later begin earning enough to make repayments. Ministers say the scheme is intended to ensure those who are able to contribute towards the support they received do so once they are financially established.

Under the proposals, repayments would be made through monthly deductions, likely via the tax or benefits system. Refugees would be expected to clear the debt before becoming eligible for permanent settlement in the UK. Individuals whose asylum claims are refused and who leave the country would also be required to repay any outstanding amount before being allowed to return.

The government is expected to set the repayment at around £10,000, although ministers have not yet confirmed the income threshold at which repayments would begin. The Home Secretary would also have powers to alter both the repayment amount and eligibility thresholds in the future.

Home Secretary Shabana Mahmood said the changes were designed to strike a balance between offering protection and ensuring fairness to taxpayers.

She said asylum support was “a right, but it is also a responsibility”, adding that those who are later able to contribute should repay “the generosity of the British people”.

The Home Office says around £4 billion was spent supporting asylum seekers over the past year. Housing costs vary significantly depending on the type of accommodation, with privately rented accommodation costing an average of £23.25 per person per night, while hotel accommodation averages £144 per night. Weekly subsistence payments currently range from £9.95 to £49.18 per person.

The proposals have prompted criticism from refugee organisations. The Refugee Council described the plans as an “extra tax on refugees”, arguing they would make it harder for people fleeing conflict and persecution to rebuild their lives after being granted protection.

The charity also pointed out that asylum seekers are generally prohibited from working while their claims are being considered, meaning many rely on government support because they have no legal way of supporting themselves.

Migration experts have also questioned how much money the scheme would actually recover. Dr Madeleine Sumption, director of the University of Oxford’s Migration Observatory, said employment rates among refugees remain relatively low, meaning only a minority are likely to earn enough to make significant repayments.

According to Home Office figures, around 24% of people granted asylum between 2015 and 2023 were in employment during their first year after receiving refugee status. That rose to approximately 48% after two years. Among those employed eight years later, median annual earnings were around £23,000, with fewer than half earning above the minimum wage.

Shadow Home Secretary Chris Philp welcomed the announcement, claiming Labour had adopted a policy previously proposed by the Conservatives after initially opposing it during the passage of earlier immigration legislation.

The Immigration and Asylum Bill is expected to contain a wider package of reforms aimed at reducing irregular migration while reshaping the UK’s asylum system. Ministers have also confirmed plans to expand the use of former military barracks to accommodate asylum seekers after announcing the closure of dozens of hotels.

The legislation will additionally introduce new capped safe and legal routes for refugees, with universities, businesses and community organisations expected to play a greater role in sponsoring arrivals as part of efforts to reduce costs to the taxpayer.

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