UK Refugees Could Be Required to Repay Up to £10,000 in Asylum Support Costs

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Refugees granted protection in the UK could be required to repay up to £10,000 towards the cost of accommodation and benefits they received while their asylum claims were being processed.

People who have been granted refugee status in the United Kingdom could be required to repay up to £10,000 (around €11,600), provided they have the financial means to do so.

The amount would represent a contribution towards the cost of accommodation and welfare payments they received while awaiting the outcome of their asylum applications.

The measure is included in a new immigration and asylum bill introduced in the British Parliament. It forms part of a broader reform package that tightens asylum rules at a time when the anti-immigration Reform UK party is leading in opinion polls.

Home Secretary Shabana Mahmood said the cost of supporting asylum seekers places a significant burden on British taxpayers.

According to the Home Office, spending on accommodation and welfare payments reached £4 billion last year, equivalent to approximately €4.6 billion.

The government argues it has already reduced those costs by around £1 billion since Labour came to power in July 2024. The reduction has been largely attributed to moving asylum seekers from hotels into former military facilities.

Mahmood said it was fair to ask those who are financially able to contribute towards the costs incurred on their behalf.

As she noted, receiving state support while seeking asylum is a right, but it also carries responsibilities.

Under the proposal, repayments would be made on a monthly basis by refugees whose incomes exceed a threshold that has yet to be determined.

Full repayment of the amount would be a condition for obtaining permanent residency and, subsequently, British citizenship.

The Home Office estimates accommodation costs at £23.25 per person per day in reception centres and £144 per person per day when asylum seekers are housed in hotels.

Weekly welfare payments range from £9.95 to £49.18 per person.

According to official figures, one-quarter of adults granted refugee status between 2015 and 2023 found work within the same year they were recognised as refugees, while half entered the labour market within two years.

Madeleine Sumption, director of the Migration Observatory at the University of Oxford, said the measure is likely to have only a limited impact on public finances because it would apply under specific conditions and affect people who generally have very low incomes.

At the same time, Home Office data show that the number of asylum seekers in the UK fell by 12% between April 2025 and March 2026 compared with the previous 12-month period, reaching 94,000 people.