The UK government has announced plans requiring asylum seekers to repay up to £10,000 for the accommodation and support they receive, once they begin earning an income. The repayment must be completed before asylum seekers can apply for settled status, or indefinite leave to remain, which allows permanent residence and work rights in the UK. The policy forms part of the Immigration and Asylum Bill introduced by Home Secretary Shabana Mahmood.

The repayment system will operate similarly to student loan repayments, with eligible individuals paying back a portion each month once their income exceeds a set threshold, which will be determined by the Home Office. Payments could be made through direct debit or via the tax and benefits system. The Home Office estimates that asylum seekers currently cost the government £4 billion annually for accommodation and support. This includes accommodations ranging from dispersal housing at approximately £23 per night to hotels costing around £144 per night. Weekly subsistence payments to asylum seekers vary depending on housing arrangements, from about £10 to nearly £50.

Mahmood characterized the current costs as "too high" and stressed the principle that while receiving asylum support is a right, it also entails a responsibility to repay when able. She emphasized that those who leave the UK but seek to return would be expected to settle any outstanding repayments first. The government estimates the charge of £10,000 is a partial recovery, as the average cost per asylum seeker is closer to £40,000 due to prolonged processing times, which often surpass a year.

The Immigration and Asylum Bill includes further reforms aimed at reducing costs and tightening immigration controls. These measures include restricting claims under Article 8 of the European Convention on Human Rights (ECHR) to a narrower definition of “core family unit” — specifically spouses, parents, and children—thus limiting the use of family life rights to avoid deportation. The Home Office analysis estimates that Article 8 claims granted last year could carry a lifetime cost of £5 billion. The bill also proposes reforms to the Modern Slavery Act, setting time limits on when claims can be made and restricting each claimant to a single submission.

Additionally, the current two-tier asylum appeals system will be replaced by a single-track process, with appeals handled by a new body of trained adjudicators recruited from the public, replacing judges in order to expedite decisions.

Reactions to the repayment scheme are mixed. Dr. Madeleine Sumption, director of the Migration Observatory at Oxford University, noted that only a small proportion of asylum seekers may earn enough to repay the costs given the income thresholds proposed. She also raised concerns that the policy could disincentivize those granted asylum from seeking employment to avoid repayments. Meanwhile, the shadow Home Secretary, Chris Philp, criticized the move, suggesting it is a policy previously advocated by the Conservative Party, now adopted by the Labour government.

The bill aims to balance cost reduction with fairness and security in the asylum system, with parliamentary debate expected as these measures are introduced.