UK Plans to Require Some Asylum Recipients to Repay Support Costs Once Earning Enough

The UK government will require people granted asylum to repay around £10,000 toward accommodation and support costs once they begin earning sufficient income. BBC News reported. The repayment forms part of the Immigration and Asylum Bill and applies to all adults with adequate funds.

Asylum seekers granted the right to work must pay the flat-rate fee before becoming eligible to settle permanently. Rejected claimants who leave the country must repay costs before returning. The Home Office has not yet set the earnings threshold for monthly installments, though the home secretary can adjust the charge and thresholds later.

Home Secretary Shabana Mahmood said asylum support is a right but also a responsibility. She added that people should repay the generosity of the British people once they can contribute. The Home Office spent £4 billion on asylum support in the year ending March 2026.

Average nightly housing costs reached £23.25 in private rentals and £144 in hotels, while weekly subsistence payments ranged from £9.95 to £49.18 per person. As of March 2026, 93,653 people were in asylum accommodation, including 20,885 in hotels. The bill will also create capped safe and legal routes sponsored by universities, community groups, and businesses.

The government has pledged to end hotel use for asylum accommodation by 2029. Employment data for those granted asylum between 2015 and 2023 showed 24 percent in work in the first year and 48 percent after two years. Of those employed eight years later, 37 percent held full-time roles with median earnings of £23,000.

The Refugee Council described the plans as an extra tax on refugees that would hinder families rebuilding their lives.