Britain unveils £10,000 settlement levy for asylum seekers

The United Kingdom has unveiled new immigration reforms that will require some asylum seekers to repay the cost of government support before becoming eligible for permanent settlement, with payments expected to average around £10,000 (about N18 million).

The proposal, introduced in Parliament on Tuesday, grants the Home Office new powers to recover the cost of asylum support—including accommodation and subsistence allowances—from adults who have been granted asylum and are financially capable of making repayments.

Under the proposed legislation, asylum seekers who have benefited from government support during the processing of their claims would be required to contribute towards those costs once they have sufficient financial means.

The reforms also extend to former asylum seekers who leave the UK and later seek to return, making repayment of the costs a condition in certain circumstances.

Defending the policy, Home Secretary Shabana Mahmood said the growing cost of supporting asylum seekers had placed an unsustainable burden on British taxpayers.

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“The cost of asylum accommodation for the British taxpayer is too high,” Mahmood said.

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

She added: “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.”

According to the Home Office, the average nightly cost of accommodating an asylum seeker is estimated at £23.25 in dispersal accommodation and £144 in hotel accommodation, while weekly subsistence payments range from £9.95 to £49.18 per person.

Government data also shows that asylum recipients increasingly enter the workforce after receiving refugee status. A quarter of asylum seekers aged between 16 and 64 who were granted refugee status between 2015 and 2023 secured employment within the same calendar year, with the figure rising to 50 percent within two years.

Among those employed eight years after receiving refugee status, 37 percent were in full-time jobs with median annual earnings of £23,000, while 40 percent earned above the national minimum wage.

The Home Office said the reforms are aimed at ensuring that individuals who have benefited from the UK’s asylum system contribute towards the public costs incurred on their behalf once they are financially able to do so.