Hotel Bills For Asylum Seekers Still Very High

7th June 2025

The UK government is currently spending around £2.2 billion per year on housing asylum seekers in hotels. This cost is part of the foreign aid budget, which is meant to support refugees and asylum seekers upon arrival in Britain.

At the end of December 2024, 38,000 asylum seekers were housed in hotels, though this number has since decreased to 32,000. The government has pledged to end the use of asylum hotels to save taxpayer money, but progress has been slow.

Over the next 10 years, asylum accommodation—including hotels—is expected to cost £15 billion, significantly higher than the originally forecast £4.5 billion. On average, the taxpayer is spending £4.2 million per day on housing asylum seekers.

The high cost of housing asylum seekers in hotels has significant implications for public services in the UK:

Strain on Local Authorities: Councils with large numbers of asylum seekers are struggling to cover costs, leading to budget shortfalls. For example, Hillingdon Council, which houses many asylum seekers near Heathrow Airport, faced a £5.3 million deficit in 2024/25 and is considering legal action against the government for more funding.

Pressure on Housing and Social Services: The demand for temporary accommodation has surged, forcing councils to buy more homes for asylum seekers. This has led to longer waiting lists for social housing and increased homelessness.

Impact on Education and Healthcare: Schools and healthcare services in areas with high asylum seeker populations are experiencing increased demand, making it harder to provide adequate support.

Rising Costs for the Government: The government originally forecast asylum accommodation costs at £4.5 billion over ten years, but the actual cost is now expected to reach £15 billion. This means less funding is available for other public services.

Concerns Over Value for Money: Some reports suggest that asylum hotels may be more profitable for private contractors than other types of housing, raising concerns about whether taxpayer money is being spent efficiently.

Public opinion on the cost of housing asylum seekers in hotels is divided, with concerns about taxpayer spending and the efficiency of government policies.

Criticism Over Costs: Many people are frustrated that the government is spending £2.2 billion per year on asylum hotels, despite promises to reduce costs2. Some argue that this money should be used for public services rather than temporary accommodation.

Concerns About Foreign Aid Usage: A significant portion of the funding comes from the foreign aid budget, which is meant to support humanitarian efforts overseas. Critics say using this money for asylum hotels is unsustainable and poor value for money.

Political Debate: The Labour government pledged to end asylum hotels, but recent figures show that spending has barely decreased2. Some opposition politicians claim that Labour has broken its promise, while others argue that the issue is complex and requires long-term solutions.

Local Authority Struggles: Councils with high numbers of asylum seekers—such as Hillingdon—are facing budget shortfalls and considering legal action against the government for more funding. This has led to concerns about the impact on housing, education, and healthcare.

Calls for Reform: Some experts argue that asylum hotels are more profitable for private contractors than other types of housing, raising concerns about whether taxpayer money is being spent efficiently. Others suggest that alternative accommodation—such as repurposed military bases—could be a better solution.