The cost of housing asylum seekers in UK hotels has surged to £15.3 billion over the decade from 2019 to 2029, a threefold increase from initial estimates of £4.5 billion, according to a report.
This escalation, driven by a rise in Channel crossings and asylum claims, comes as the European Union has rebuffed British requests for enhanced intelligence sharing to combat people-smuggling gangs, exacerbating the crisis.
A Mounting Financial Burden
In 2024 alone, the UK spent £1.67 billion on asylum accommodation, equivalent to £4.6 million per day or £3,172 per minute. As of December 2024, 38,000 migrants were housed in approximately 220 hotels, with an additional 66,000 in self-catering accommodations such as flats and houses.
The National Audit Office reports that private firms like Clearsprings, Serco, and Mears are set to earn £7.3 billion, £5.5 billion, and £2.5 billion, respectively, over the 2019–2029 period for managing these facilities.
The overall number of asylum seekers in Home Office accommodation has risen by 134% since 2019, from 47,000 to 110,000, fuelled by increased small boat arrivals and a backlog of claims.
EU Rejects UK’s Plea for Smuggling Crackdown
The UK’s efforts to curb illegal migration have hit a roadblock, with the European Commission refusing to grant access to critical Europol intelligence on smuggling networks.
Home Office officials sought greater access to data on gangs operating in Europe, particularly those facilitating crossings from Calais, but Brussels has resisted, citing ongoing negotiations over a broader UK-EU “reset.”
The EU has also denied access to fingerprint databases and systems that could identify migrants who have claimed asylum elsewhere before reaching the UK.
This lack of cooperation hampers the UK’s National Crime Agency, which has officers embedded with Europol in the Netherlands to disrupt the flow of over 150,000 migrants who have crossed the Channel since 2019.
Labour’s Policy Struggles and Public Backlash
Under Prime Minister Keir Starmer, the Labour government has pledged to “smash the gangs” through measures like the Border Security, Asylum and Immigration Bill, which introduces counter-terrorism-style powers to target smugglers.
However, the number of Channel crossings has increased since Labour took power, with 38,784 irregular arrivals detected in the year to June 2024, 81% via small boats.
The government’s decision to reverse parts of the Illegal Migration Act has led to a backlog of asylum cases, prolonging the need for costly hotel accommodations. Critics argue that without safe legal routes for refugees, smuggling networks will continue to thrive.
Public discontent is growing, with senior government figures linking the £4.6 million daily hotel costs to rising support for Reform UK in recent local elections.
The party, which gained control of 10 local authorities, is exploring judicial reviews to block asylum hotels in its areas, citing community tensions and financial strain. Posts on X reflect public frustration, with users decrying the £1.53 billion annual cost as exceeding Labour’s controversial winter fuel allowance cut of £1.4 billion.
A System Under Pressure
The government faces mounting pressure to reduce reliance on hotels, which have drawn criticism for disrupting local communities and businesses. In places like Kegworth, hotel closures for asylum use have led to cancelled weddings and lost revenue, while asylum seekers like Simpay Khalifa, a 25-year-old Sudanese migrant, describe idle days in remote accommodations with little access to education or work.
Labour’s upcoming immigration White Paper, due next week, may propose extending the wait for permanent residency from five to ten years for some migrants, alongside stricter English language requirements, to deter claims and ease financial pressures.
As the UK grapples with a strained asylum system and limited international cooperation, the soaring costs and social tensions underscore the complexity of addressing irregular migration. Without significant breakthroughs in enforcement or EU collaboration, the financial and political toll is likely to deepen.
