Ministers are considering increasing the amount paid for private rental properties to house asylum seekers. This forms part of Prime Minister Andy Burnham's strategy to distribute accommodation more evenly across the country.
Officials suggest that raising current caps on Home Office rent payments to landlords may be necessary. This is intended to prevent asylum accommodation from being heavily concentrated in the most deprived areas, aligning with Mr Burnham's call for more areas to "play their part" in housing asylum seekers.
Government sources indicate that while some critics suggest this proposal would increase costs, it is considered cheaper than using hotels. The number of hotels used for asylum seekers has fallen from 213 in July 2024 to fewer than 160 today, with overall asylum support costs reportedly falling by £1bn since the general election.
Refugee charities broadly support the policy of national responsibility for asylum seekers. However, they emphasise that local councils should lead, ensuring people are not sent to areas without adequate support services, housing, legal advice, or established refugee communities.