UK will end use of asylum hotels by 2029, Reeves says

Political reporter Sam Francis and political correspondent Jack Fenwick reported the government’s new plan to phase out the use of hotels to house asylum seekers by 2029. Chancellor Rachel Reeves stated that this move would save £1bn annually. The announcement was made during the Spending Review where £200m was pledged to address the asylum backlog, process more appeal cases, and facilitate the return of individuals who do not have the right to remain in the UK.

According to the National Audit Office (NAO), asylum housing costs are projected to reach £15.3bn over the next decade, triple the amount initially budgeted by the Home Office. Conservative shadow home secretary Chris Philp criticized the government’s plans, stating that there was no clear strategy on where these individuals would be housed once hotels are phased out. Home Office minister Dame Angela Eagle mentioned the potential acquisition of tower blocks and former student accommodations as alternative housing options for migrants.

Labour had promised in its manifesto to end asylum hotels without specifying a timeline for achieving this goal. However, Reeves assured MPs that the government aims to reach this objective within the current Parliament. The reforms to the asylum system are expected to lead to cost savings of at least £1bn per year by 2028–29. The funds for these initiatives will be sourced from the Transformation Fund, allocated for the modernization of public services.

The speculations point to a surge in hotel usage for accommodating asylum seekers since 2020, driven by asylum backlogs, housing shortages, and escalating rental prices, according to the Migration Observatory at Oxford University. As of the most recent figures, there are approximately 32,000 asylum seekers housed in hotels in the UK, representing a 6% decrease from the previous year. Responding to the announcement, home affairs committee chairwoman Dame Karen Bradley emphasized the need for workable solutions in place to deliver the targets set forth by the government. The chancellor also announced additional funding for the Border Security Command to address people smuggling and small boat crossings

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