People granted asylum in the UK will now be required to repay around £10,000 towards the cost of the accommodation and financial support they received once they begin earning, under new government plans.
The measure forms part of the forthcoming Immigration and Asylum Bill, which is due to be introduced in Parliament on Tuesday.
This bill will apply to asylum seekers who are allowed to work in the UK, with repayments becoming a condition that must be met before they can qualify for permanent settlement.
Under the proposals, eligible migrants who earn above a government-set income threshold will be required to repay a flat-rate amount, expected to be £10,000, through monthly instalments. The Home Office has not yet decided what income level will trigger repayments.
Ministers will also have the power to adjust both the repayment amount and the earnings threshold in the future to ensure the scheme remains fair to taxpayers while avoiding financial hardship for migrants.
The repayment requirement will also apply to people whose asylum applications have been rejected if their income exceeds the government’s threshold.
Home Secretary Shabana Mahmood said the policy reflects the principle that while asylum support is a right, it also comes with responsibilities: she said that once people are financially able to contribute, they should repay the generosity shown by British taxpayers.
The Home Office said around £4 billion of public money was spent supporting asylum seekers last year. Housing an asylum seeker in publicly owned accommodation costs an average of £23.25 per night, rising to £144 per night for hotel accommodation, while weekly subsistence payments range from £9.95 to £49.18 per person.
The plans have drawn criticism from refugee organisations — for instance, the Refugee Council described the proposals as unfair and impractical, arguing they amount to an additional tax on refugees that would make it more difficult for families to rebuild their lives and achieve financial independence.
The charity’s director of external affairs, Imran Hussain, said many asylum seekers require state support because they are prohibited from working while their claims are being processed. He argued that the repayment scheme would place an extra financial burden on people who often arrive in the UK with very few resources.
Researchers have also questioned how much money the policy is likely to recover. The Migration Observatory at the University of Oxford said employment and earnings among refugees remain relatively low, meaning only a limited number of people are likely to meet the repayment threshold.
Its director, Dr Madeleine Sumption, noted that in 2023 only an estimated 13% of people granted refugee status five years earlier were earning at least £20,000 a year, while most were either unemployed or earning less. She said the figures suggest that unless the repayment threshold is set well below the minimum wage, only a small proportion of refugees would contribute under the scheme.
According to Home Office figures, around 25% of people aged 16 to 64 who were granted asylum between 2015 and 2023 were in work during the same calendar year. That proportion rose to 50% two years after refugee status was granted. Eight years after receiving refugee status, 37% of those in employment were working full-time with median annual earnings of £23,000, while only 40% earned more than the minimum wage.
Shadow Home Secretary Chris Philp said Labour had adopted another Conservative proposal, arguing that his party had put forward an almost identical repayment scheme as an amendment to last year’s Immigration Bill, which Labour opposed.
Ministers say the Immigration and Asylum Bill is designed to create a firm but fair asylum system while reducing the incentives for illegal migration. However, some of its tougher measures are expected to face opposition from Labour MPs.
The legislation will also include plans for new capped safe and legal routes for refugees to enter the UK. Under the proposals, organisations such as universities, businesses and community groups would be able to sponsor refugees, with the aim of reducing costs to taxpayers.
Separately, the Home Office announced last week that it plans to use more former military barracks to accommodate thousands of asylum seekers after closing a further 20 asylum hotels across England.
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