Key things to know about UK’s new asylum repayment plan

The UK government has announced plans to require asylum seekers who are financially able to repay the cost of their accommodation and support under sweeping reforms contained in the new Immigration and Asylum Bill.

Tribune Online reports that the proposed legislation, due to be introduced to Parliament, will give the Home Office new powers to recover the cost of asylum support—including accommodation and subsistence payments—from adults who have sufficient financial means.

Under the proposals, eligible migrants will pay a flat-rate monthly charge once their income exceeds a specified threshold. The Home Secretary will have the authority to set and adjust both the repayment amount and eligibility threshold to ensure the policy remains fair and does not leave migrants destitute.

Here are some of the key details on the UK repayment plan: 

Some asylum seekers to repay support costs

Under the proposed Immigration and Asylum Bill, asylum seekers who can afford it will be required to repay part of the cost of their government-funded accommodation and financial support.

“A quarter of 16 to 64-year-olds granted asylum between 2015 and 2023 were in employment within the same calendar year they were granted status, with that number rising to nearly 50% 2 years after status was granted. 

“Of those who were in employment 8 years after the grant, 37% were in full-time work with median earnings of £23,000, with internal analysis of the published Refugee Integration Outcomes dataset showing that 40% earned at least minimum wage annually,” the UK government on its website. 

Repayments could total around £10,000

Eligible migrants are expected to contribute about £10,000 through monthly payments once their income exceeds a government-set threshold. The amount is a contribution, not the full cost of support.

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.”

Settlement could depend on repayment

Migrants will have to clear the full repayment before becoming eligible for permanent settlement in the UK. Those who leave the country will also have to settle the debt if they wish to return in the future.

There will be various methods for those individuals to pay. The primary mechanism for this is expected to be through direct payments to the Home Office, with options also being explored to use the tax and benefits systems. 

Asylum gulps £4bn annually

The Home Office said asylum accommodation and support cost £4 billion last year, adding that it has already reduced spending by nearly £1 billion by closing asylum hotels and moving people into cheaper accommodation.

The department estimates that the average cost of accommodating an asylum seeker is £23.25 per person per night in dispersal accommodation and £144 per night in hotels. Weekly subsistence payments range from £9.95 to £49.18 per person. 

Part of a wider immigration overhaul

The repayment scheme forms part of the government’s new Immigration and Asylum Bill, which it says will introduce the biggest reforms to the UK’s asylum system in a generation to tighten immigration controls and reduce incentives for illegal migration.

Tribune