UK Home Office to recover up to £10,000 from employed asylum seekers for prior support

The Home Office introduced legislation on Monday that will require certain asylum seekers to repay approximately £10,000 for housing and financial support once they begin earning income. The measure applies only to adults who received accommodation or subsistence payments while awaiting a decision on their claims.

Repayments will be collected only from those assessed as having sufficient funds, with monthly installments set to total around £10,000. Details on eligibility thresholds and collection procedures remain under development.

Background on asylum support rules Asylum seekers are generally barred from working until their claims are decided or they have waited more than one year. During that period they rely on Home Office-provided housing and weekly subsistence payments ranging from £9.95 to £49.18.

Last year the Home Office spent £4 billion on asylum support, with average nightly accommodation costs of £23.25 in dispersal housing and £144 in hotels. An IPPR analysis placed the annual per-person cost at roughly £41,000 for 2023/24.

Reactions from advocacy groups Charities described the repayment plan as an additional financial burden on individuals who have already faced extended waits. Refugee Council director of external affairs Imran Hussain called the measure an extra tax on refugees.

Housing manager Zoe Dexter at the Helen Bamber Foundation said requiring repayment at the start of employment would hinder integration. Kolbassia Haoussou of Freedom from Torture stated the proposal would affect survivors of torture and sexual violence.