The UK government has announced plans to stop housing asylum seekers in hotels by 2029. UK to end asylum hotel use by 2029, a move Chancellor Rachel Reeves says will save taxpayers £1bn annually. Reeves unveiled £200m to speed up asylum processing and deport those denied refuge. An extra £150m in 2026-27 and £50m in 2027-28 will fund system reforms. Officials claim this will cut costs by £1bn yearly by 2028-29.
Ministers aim to phase out hotels by reducing Channel crossings and building state-run shelters. The Home Office is considering former student housing and tower blocks as alternatives. A National Audit Office report warns asylum housing could cost £15.3bn over a decade triple initial estimates. Last year, hotel stays alone cost £1.3bn, housing 32,000 migrants.
Shadow Home Secretary Chris Philp dismissed the plan, saying: “Hotels won’t magically empty themselves.” He demanded clarity on relocation plans. The government’s plan has drawn mixed reactions, with refugee advocacy groups warning that rushed closures could leave vulnerable asylum seekers without adequate housing. UK to end asylum hotel use by 2029, but charities stress that alternative accommodations must meet basic living standards to avoid worsening humanitarian conditions. Meanwhile, local councils have raised concerns about capacity, urging ministers to provide clearer guidance on long-term housing solutions before hotels are phased out
The Spending Review also pledged £280m yearly for the Border Security Command to combat people smuggling. This follows £150m to launch the unit in 2023. Home Affairs Committee Chair Dame Karen Bradley warned that without viable alternatives, policing and counter-terrorism budgets could suffer.
UK to end asylum hotel use by 2029, but challenges remain. With record backlogs and soaring costs, the success of this pledge hinges on faster processing and new housing solutions.
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