The UK government is set to introduce a new asylum system that will require refugees to repay £10,000 towards their initial accommodation and support costs. The measures, outlined in the forthcoming Immigration and Asylum Bill, are expected to be presented to Parliament this Tuesday and will apply to those granted refugee status or indefinite leave to remain.
According to Home Secretary Shabana Mahmood, the proposal aims to strike a balance between asylum support being both a right and a responsibility. She stressed that individuals should contribute to repaying the generosity of the British public once they are in a position to do so. While the Home Office has yet to specify the exact earning threshold for monthly instalments, the Home Secretary will retain discretion to adjust both the charge and repayment thresholds as needed.
The policy follows a reported £4 billion expenditure by the Home Office on supporting asylum seekers last year. This includes an average cost of £23.25 per night for housing in publicly-owned accommodation and rising to £144 in hotels, alongside subsistence payments ranging from £9.95 to £49.18 per person per week.
The Refugee Council has expressed criticism towards the proposals, labelling them 'unfair' and effectively an 'extra tax on refugees'. Imran Hussain, director of external affairs, pointed out that many asylum seekers require support due to Home Office rules prohibiting work while claims are being processed. He argued that imposing a new financial burden would exacerbate difficulties in rebuilding lives.
Dr Madeleine Sumption's analysis from the University of Oxford's Migration Observatory highlighted potential issues with financial recovery. Her data showed that only an estimated 13% of individuals granted refugee status five years prior were earning at least £20,000 in 2023. This raises concerns about the effectiveness of repayment thresholds below the minimum wage.
The Labour Party has also responded to the proposals, with shadow home secretary Chris Philp claiming that a similar scheme was proposed by the Conservatives as an amendment to the Immigration Bill. He stated that Labour had considered the policy but ultimately decided not to pursue it.