Imagine fleeing persecution, arriving in the UK with nothing, then spending months or years in state-provided accommodation – only to be told that once you finally find a job, you must pay back roughly £10,000 for the support you received. That is the reality facing asylum seekers under new rules announced by the Home Secretary, Shabana Mahmood. The plans, set to be included in the upcoming Immigration and Asylum Bill, would require adults granted asylum to repay the cost of their accommodation and subsistence once they earn enough, with the debt cleared before they can apply for settled status.
The basics are straightforward. The Home Office spent around £4 billion on asylum support last year. Under the new rules, adults who have received asylum support and later earn above a certain threshold will be expected to repay a flat-rate sum, expected to be around £10,000. The repayment would be deducted in monthly instalments, similar to a student loan, and must be paid off before the individual can obtain Indefinite Leave to Remain (settled status) – the right to permanently live, work, and study in the UK. The Home Secretary will have the power to adjust the charge and repayment thresholds to ensure they are fair to taxpayers and do not force migrants into destitution. The plans apply to those whose asylum claims are granted, and also to those whose claims are rejected but who later earn enough.
“Explains the UK's new plan to require asylum seekers to repay up to £10,000 in support costs once employed.”
Why is this happening now? The government argues that the cost of supporting asylum seekers is too high – £4 billion last year. Currently, the average cost of housing an asylum seeker for one night is £23.25 in publicly-owned accommodation and £144 in a hotel, while subsistence payments range from £9.95 to £49.18 per person per week. Home Secretary Mahmood said: "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." The government has already reduced asylum costs by £1 billion, but wants to go further. Critics, however, point out that asylum seekers are banned from working while their claims are assessed, so many arrive destitute and rely on state support through no choice of their own.
For UK readers, this matters because it represents a significant shift in how the country treats refugees. Proponents say it ensures that those who benefit from the system contribute fairly, easing the burden on taxpayers. But opponents argue it will create a debt trap that makes integration harder. The Refugee Council called it "an extra tax on refugees" that would make it "harder for families to rebuild their lives." The University of Oxford's Migration Observatory questioned how much money the government would actually recoup, noting that in 2023 only 13% of people granted refugee status five years earlier were earning at least £20,000 – meaning most would not earn enough to repay. Charities like the Helen Bamber Foundation described the plan as "more performative cruelty" that is "the opposite of integration."
Q: Who will have to pay the £10,000? Adults who have received asylum support (accommodation and subsistence) and are later granted refugee status or other protection will have to repay a flat-rate sum of around £10,000 once they start earning above a set threshold. Those whose claims are rejected but who later earn enough will also be liable.
Q: How will the repayment work? Eligible individuals will pay monthly instalments from their earnings once they exceed a certain income threshold – similar to a student loan. The exact threshold has not been set. The debt must be cleared before they can apply for Indefinite Leave to Remain (settled status). If they leave the UK, they must repay in full before they can return in the future.
Q: What happens if someone cannot afford to pay? The Home Secretary has the power to adjust the charge and repayment thresholds to ensure that no one is forced into destitution. The government says it wants to be "fair to the taxpayer" while not harming migrants. However, critics argue that the low employment rates among refugees mean many will never earn enough to repay, so the policy may raise little revenue while adding stress.
What happens next? The powers to recover costs will be set out in the Immigration and Asylum Bill, which is due to be introduced to Parliament on Tuesday. The bill will need to pass through both Houses before becoming law. The exact repayment amount and earning thresholds will be determined later by the Home Secretary. Debates are expected to be heated, with charities and opposition MPs calling the plan unfair and impractical.