UK to require asylum seekers to pay up to £10,000 before settlement

The UK government has unveiled new immigration reforms that could require asylum seekers to repay up to £10,000 before becoming eligible for permanent settlement.

Under a bill introduced to parliament on Tuesday, the Home Office will gain powers to recover costs from adult asylum seekers who previously received state support, including accommodation and subsistence payments, if they are later found to have sufficient financial means.

The proposed policy marks a significant shift from existing practice, as asylum seekers in the UK have traditionally not been required to reimburse the government for support received during the asylum process. Similar repayment schemes are also uncommon internationally.

UK Home Secretary Shabana Mahmood defended the measure, arguing that the rising cost of supporting asylum seekers has placed a heavy burden on taxpayers.

“The cost of asylum accommodation on the British taxpayer is too high,” Mahmood said.

“We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so.”

She added that while receiving asylum support remains a right, beneficiaries should also be expected to contribute financially once they are able to do so.

“Once people can contribute and repay the generosity of the British people, we expect them to do so,” she said.

According to the Home Office, the repayment requirements will also apply to former asylum seekers who leave the UK and later seek to return.

Government estimates show that accommodating asylum seekers costs an average of £23.25 per person per night in dispersal housing and £144 per night in hotels. Weekly subsistence payments currently range from £9.95 to £49.18 per person.

The UK government also cited employment data for refugees to support the reforms. Official figures indicate that about 25 percent of people granted asylum between 2015 and 2023 secured employment within the same calendar year they received refugee status. That figure reportedly rises to 50 percent within two years.

Among those employed eight years after being granted asylum, 37 percent were working full-time with median annual earnings of £23,000, while 40 percent earned above the minimum wage.

The Home Office said the reforms are intended to ensure asylum seekers take greater responsibility for the financial impact of their stay in the country.