Policy paper

Immigration and Asylum Bill: Asylum cost recoup

Published 8 October 2026

What are we doing?

The bill will create a clear legal basis on which to require individuals who have received taxpayer funded asylum support and accommodation to provide a contribution towards those costs. Individuals will only be required to contribute towards those costs when they are financially able to do so.

Recovery will apply to any support received under sections 4 and 95 of the Immigration and Asylum Act 1999 once these measures come into force. The charge will only apply to adults who have received support. Children will be exempt on the face of the bill. Other exemptions will be set out in secondary legislation. Victims of modern slavery will be exempt.

There will be a flat charge to be repaid as a contributory payment towards the accommodation and support received.  Thresholds will not be set at a level that may cause destitution.  These details will be set out in secondary legislation so they can be adjusted more flexibly in response to changing circumstances.

As part of ensuring compliance with the requirement to pay the charge, those who leave the UK as a failed asylum seeker will still be required to make the payments if they wish to return at a future date. Nobody can enter the country legally with a government debt.

Detailed design of the scheme, including the thresholds, repayment rates, and operational delivery model will be set out in secondary legislation.

The charges will be introduced as soon as possible once the bill has received Royal Assent, noting the need for secondary legislation and the creation of the mechanism through which to make payments.  

Why are we legislating?

Requiring individuals to contribute towards the cost of their support reflects a principle of responsibility, and a system based on contribution, fairness and integration.  

It will allow those on a pathway to settlement to make a contribution to UK society, while for those without a right to remain it will ensure they take responsibility for the financial impact of their presence in this country.

How will the bill achieve this?

The bill will give the Home Secretary powers to recover costs directly to the Home Office, by enabling the Home Office to develop its own cost recovery mechanism. The bill also includes an enabling power for HMRC to recover costs via the taxation system.

Key statistics

Costs of asylum support system

• The cost of providing support is substantial and the number of individuals who require support has also increased.
• In 2024/25 financial year a total of £4bn was spent on asylum support in the UK. This includes £5.5m on asylum hotels a day. ^{[footnote 1]}
• At the end of June 2026, there were 93,293 individuals in receipt of asylum support. A decade prior on 30 June 2016, there were less than half as many supported asylum seekers overall (42,651). ^{[footnote 2]}

Progress in reducing system pressures

• The use of asylum hotels is decreasing as is the time it takes for initial decisions to be made for an individual’s asylum application. At the end of June 2026 there were 40,168 people (relating to 32,401 cases) awaiting an initial decision, 56% less than at the end of June 2025 and the lowest level since June 2019. ^{[footnote 3]}
• Of the supported population on 30 June 2026, 16,021 (17%) were in hotel accommodation, 50% lower than at the end of June 2025, and 71% lower than the peak of 56,018 at the end of September 2023.

Economic integration and ability to contribute

• As individuals move through the asylum system and, where applicable, are granted protection, many go on to participate in the labour market and wider society. A proportion of these will, over time, have the financial means to make a reasonable and proportionate contribution towards the support they previously received.
• Of those granted refugee status between 2015 and 2023, a quarter (26%) of asylum refugees aged 16 to 64 years were in employment within the same calendar year they were granted refugee status. ^{[footnote 4]}
• From 2 years after being granted refugee status onwards, the employment rate of asylum refugees remained stable between 48% and 51%.
• Of those who were in employment 8 years after grant:
  • 37% worked full-time hours (30 hours or more per week) with median earnings of £23,000 ^{[footnote 5]}
  • 15% worked part-time hours (less than 30 hours per week) with median earnings of £10,000
  • 48% worked no regular pattern of hours (for example, seasonal or gig economy work) with median earnings of £11,000
  • 40% would have earned more than minimum wage based on adjusted earnings (accounting for periods of work less than the entire year). ^{[footnote 6]}

Footnotes

1. Home Office annual report and accounts: 2024 to 2025  ↩

2. Immigration system statistics data tables: Asylum support    ↩

3. Immigration system statistics data tables: Asylum claims and decisions   ↩

4. Refugee Integration Outcomes (RIO): How many refugees are in employment? ↩

5. Refugee Integration Outcomes (RIO): How much do refugees earn from employment ↩

6. Based on internal analysis of the HMRC PAYE-RTI (Pay As You Earn Real Time Information) dataset ↩