UK proposes £10,000 repayment requirement for asylum seekers before permanent settlement

Asylum seekers in the United Kingdom may soon be required to repay up to £10,000 (about $13,222) in accommodation and living support received from the government before they can apply for permanent settlement, under new proposals aimed at tightening the country’s immigration system and reducing the cost of asylum support to taxpayers.

The proposal was announced on Monday by the UK government as part of its latest package of immigration reforms.

The measures were unveiled by Interior Minister Shabana Mahmood, who said the changes are intended to ensure that asylum recipients who later become financially stable contribute towards the public support they received while their claims were being processed.

The announcement comes as asylum applications continue to rise in the UK. According to Home Office data, there were 93,525 asylum applications between April 2025 and March 2026, representing a 12% increase compared to the previous 12-month period, adding further pressure on the country’s asylum system and public finances.

What they are saying

Immigration has remained one of the most politically sensitive issues in the United Kingdom for years, consistently ranking among voters’ top concerns and shaping debates across successive governments. The issue has also become increasingly significant amid growing public pressure over illegal migration, asylum accommodation costs, and border security.

Explaining the rationale behind the proposed policy, Mahmood said the government believes asylum support should come with an expectation of repayment from those who are later able to afford it.

• “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.”

Under the proposed rules, only adult asylum seekers who are financially capable of making repayments would be required to do so. The government said safeguards would be put in place to ensure repayments do not leave individuals in financial hardship. The policy would also not apply retrospectively, while children would be exempt from the repayment requirement.

More insights

The proposal comes against the backdrop of broader immigration pressures facing the UK and an increasingly heated political debate over migration policy.

• Official figures show that 813,000 people immigrated to the UK between January and December 2025, marking a 20% increase over the previous 12 months.
• During the same period, enforcement activities also intensified. Between April 2025 and March 2026, the UK recorded 39,007 returns and deportations, reflecting continued efforts to remove individuals without legal permission to remain in the country.
• The government is legally required to provide accommodation for asylum seekers who cannot financially support themselves while their applications are under consideration. As of March 2026, 93,653 people were living in government-funded asylum accommodation.
• Of that figure, 20,885 people, about 22%, were being housed in hotels, which are typically used when there is insufficient capacity in longer-term accommodation such as shared houses or converted former military facilities.

According to the government, accommodating asylum seekers costs an average of £23.25 per person per night in temporary accommodation and £144 per night for those placed in hotels, in addition to weekly subsistence payments. Overall, asylum accommodation and support cost the government an estimated £4 billion over the past year.

What you should know

The proposed repayment scheme is the latest in a series of measures introduced by the UK government to tighten immigration controls and reduce abuse of the country’s visa and asylum systems.

• Earlier in June, the UK announced plans to prevent universities from sponsoring international students where there are concerns over visa abuse linked to asylum claims. Under the reforms, a new traffic-light rating system for higher education institutions will be introduced from summer 2027, while some enforcement measures are already taking effect.
• The government has also modernised its visa administration process. In February 2026, it announced that physical visa stickers for Nigerian travellers would be phased out in favour of fully digital eVisas, meaning all newly issued UK visit visas for Nigerians now exist only in electronic form.

The tightening of immigration rules has also extended to visa costs. Effective April 8, 2026, the UK increased application fees for overseas visa applicants. Under the revised schedule, the fee for a standard six-month visitor visa rose from £127 to £135, while two-year visas increased from £475 to £506. Five-year visas climbed from £903 to £961, and 10-year visas increased from £1,059 to £1,128, reflecting the government’s broader effort to reform and strengthen its immigration system.