Imagine being granted safety in the UK after fleeing persecution, only to be handed a £10,000 bill for the bed you slept in and the food you ate while your claim was processed. That's the reality facing tens of thousands of refugees under new government plans. The Home Office has announced that adults granted asylum will be required to repay around £10,000 towards the cost of their accommodation and support once they start earning, as part of the forthcoming Immigration and Asylum Bill.
The plans, announced by Home Secretary Shabana Mahmood on 30 June 2026, mean that asylum seekers who have the right to work in the UK will have to pay a flat-rate fee – expected to be set at £10,000 – before they can become eligible for settled status (also called indefinite leave to remain). The repayment system would work similarly to a student loan: migrants earning above a certain threshold would make monthly instalments. The Home Office has not yet decided what that earnings threshold will be, but the home secretary can adjust the charge and repayment terms to ensure the system is "fair to the taxpayer" and does not push migrants into destitution.
“Explains the UK's new asylum repayment bill requiring refugees to repay £10,000 of support costs.”
The policy is part of a wider trend to tighten the UK's asylum system. According to the Home Office, around £4bn of taxpayers' money was spent supporting asylum seekers last year. The average cost of housing an asylum seeker for one night is £23.25 in private-rented accommodation and £144 in a hotel. Subsistence payments – money for food, clothing and other essentials – range from £9.95 to £49.18 per person per week. The government argues that once people can contribute, they should repay the generosity of the British people. Dr Madeleine Sumption, director of the University of Oxford's Migration Observatory, said the measures move the immigration system "in a more restrictive direction" while still aiming to comply with international refugee and human rights law.
For UK readers, this policy matters because it changes the deal for refugees rebuilding their lives here. The Refugee Council called the plans an "unfair, impractical extra tax on refugees" that would make it harder for families to stand on their own feet. Its director of external affairs Imran Hussain pointed out that the Home Office itself bans asylum seekers from working while their claims are being assessed, meaning many arrive with nothing. According to Home Office figures, only a quarter of refugees granted asylum between 2015 and 2023 were employed within the same calendar year. After two years that rose to 50%, and after eight years, 37% were in full-time work with median earnings of £23,000 – a figure that suggests many would struggle to repay £10,000. Critics also note that those whose asylum claims are rejected will have to repay costs before they can return to the UK.
Q: Who has to repay the £10,000? Adults granted asylum in the UK who have sufficient financial means – specifically those who are working and earning above a yet-to-be-determined threshold. The debt must be paid off in full before they can qualify for settled status (indefinite leave to remain).
Q: How will the repayment work? It will likely be a monthly deduction from earnings, similar to a student loan. The exact repayment threshold and instalment amounts have not been set, but the home secretary has the power to adjust them to avoid pushing migrants into destitution.
Q: What happens if someone's asylum claim is rejected? Those whose claims are refused must also repay the costs of their support (if they meet the earnings threshold) before they can return to the UK in the future.
The bill is set to be presented to Parliament on Tuesday. Much depends on the eventual regulations – the earnings threshold, monthly payment amounts and any exemptions – which will be decided later. The government says the goal is to recover costs while remaining compliant with international law. Given the strong reaction from refugee charities and opposition, the details are likely to be fiercely debated before the bill becomes law.