Refugees face £10,000 asylum support debt under controversial government plans

Refugees who are granted the right to remain in the UK could be required to repay around £10,000 towards the cost of their asylum accommodation and support under new government legislation that critics say will make it harder for people fleeing persecution to rebuild their lives.

The measures, contained in the Immigration and Asylum Bill introduced to Parliament, would give the Home Office new powers to recover a flat-rate contribution from adults who received asylum support once they have sufficient means to pay. Repayments would be made monthly above a set earnings threshold, with the debt needing to be cleared before individuals become eligible for settlement.

The government says the policy is intended to reduce the financial burden of the asylum system on taxpayers while ensuring those who can contribute towards the costs of their support do so.

Home Secretary Shabana Mahmood said: "The cost of asylum accommodation on the British taxpayer is too high.

"We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so.

"Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so."

The Home Office said annual spending on asylum accommodation and support reached £4 billion last year and argued the new policy would complement wider efforts to reduce costs, including ending the use of asylum hotels.

However, the proposals have prompted concern from refugee organisations and migration experts, who question both the fairness of the policy and whether it will generate significant savings.

The Refugee Council described the plans as effectively imposing a new financial penalty on people who have already been recognised by the government as needing protection.

Imran Hussain, Director of External Affairs at the Refugee Council, said: "Refugees have always contributed to our national prosperity and paid their taxes once they have had time to integrate. Imposing what amounts to an extra tax on refugees, who the Home Office accepts have arrived here after fleeing persecution, torture and war, is unfair, impractical and make it much harder for families to rebuild their lives and stand on their own feet.

"The reason why many need asylum support is because the Home Office itself bans asylum seekers from working while their claims are being assessed. Asylum support is only given to people who are at risk of being destitute, so this new financial burden would only harm those who arrive on our shores with the least.

"When somebody is granted refugee status, that should be a moment for them to finally feel safe and supported. Instead, they would now face an unavoidable £10,000 debt, making their road to permanent settlement much more difficult.

"The way to bring down costs sustainably is to improve Home Office decision-making, rather than punishing people for needing a safety net.

"By building a fair and controlled asylum system that makes quick and accurate decisions, the government would reduce the number of people stuck in costly asylum accommodation, unable to work or move on with their lives."

The proposals are also being questioned on practical grounds. Speaking on BBC Radio 4's Today programme, Dr Madeleine Sumption, Director of the Migration Observatory at the University of Oxford, said the legislation appeared designed to make the immigration system "more restrictive".

"The government goal appears to be to tighten up that system as much as they can while still remaining compliant with international refugee law and human rights law," she said.

The Migration Observatory also questioned how much money the scheme would recover. According to its analysis, only a minority of refugees achieve earnings that would enable them to make significant repayments. In 2023, an estimated 13% of people granted refugee status five years earlier were earning at least £20,000, with most either not in work or earning less.

Sumption said: "The data suggests that unless thresholds were significantly below the minimum wage, a relatively small share of people granted asylum would earn enough to make contributions to the scheme."

The proposed legislation highlights a tension between the government's aim of reducing public expenditure and the challenges faced by refugees as they establish new lives in the UK. For social workers and organisations supporting refugees, concerns are likely to centre on whether requiring people to repay the costs of support that was provided because they were legally prevented from working could create additional barriers to successful integration, increase financial hardship and undermine longer-term outcomes for individuals and families already recovering from persecution, conflict and displacement.