UK to end use of asylum hotels by 2029

Chancellor Rachel Reeves has announced that government will end the use of Asylum hotels by 2029.

Delivering her Spending Review on Wednesday 11 June, Reeves said further funding of up to £280 million more per year by the end of the Spending Review for the new Border Security Command.

Alongside that, the government is tackling the asylum backlog, she said. Reeves said the government will use the extra funding announced today to end the costly use of hotels to house asylum seekers in this Parliament.

This aligns with promises made in Labour’s election manifesto.

Data shows that at the end of Q1 2020, only 5% of asylum seekers were housed in contingency accommodation, but by 31 December 2024 over a third were staying in such facilities, mostly hotels.

Between Q1 2014 and Q3 2023, the number of asylum seekers receiving accommodation support grew from 28,300 to 119,000 people (an increase of 320%), while the use of dispersal housing increased by only 113% (from 27,300 to 58,400).

Ending asylum hotels is expected to save taxpayers over £1 billion a year, Reeves said.

Now read: The UK sector which has lost 360,000 jobs