UK Taxpayers Foot £4 Million A Day Bill to House Asylum Seekers in Hotels

The UK government is currently spending an alarming £4 million a day on housing asylum seekers in hotels, a cost that has surged due to the growing number of small boat crossings and a backlog in asylum applications. As of early 2025, around 38,000 asylum seekers roughly 35% of the total asylum seeker population are being accommodated in hotels, which now account for 76% of the asylum accommodation costs. The daily cost per person in a hotel is approximately £145, a stark contrast to just £14.41 for shared housing. This dramatic increase in spending has drawn attention to the growing financial burden on taxpayers.

The National Audit Office (NAO) has projected that the total cost of housing asylum seekers will reach £15.3 billion over the next decade, tripling the original estimate. This sharp rise is attributed to a 134% increase in the number of individuals requiring government accommodation, growing from 47,000 to 110,000 since 2019. Despite ongoing efforts to reduce hotel usage, the Home Office continues to face significant challenges in processing asylum claims efficiently and providing alternative housing solutions. The mounting costs have become a source of concern for many, with taxpayers footing the bill for a system struggling to keep up with the rising demand.

In response to the escalating costs, the government has begun implementing measures to cut hotel usage and improve the asylum process. The Labour government has already closed 23 hotels and terminated contracts with major accommodation providers. The Home Office aims to save £4 billion by 2026 through more efficient claim processing and increased use of dispersal housing. However, human rights organizations have raised concerns that these cost-saving measures may negatively impact the quality of accommodation and support provided to asylum seekers, potentially leaving vulnerable individuals in less favorable conditions.