Reeves Vows to End Expensive Asylum Seeker Hotels in UK

Key Takeaways

• In June 2025, Rachel Reeves vowed to end hotel use for asylum seekers amid record costs and 32,000 housed in hotels.
• The UK spends £1.3 billion yearly on asylum hotels, seven times costlier than other accommodation types.
• Labour closed 13 hotels early 2025 but hotel use rose; no deadline set to end reliance on hotels.

Rachel Reeves Vows to End Costly Asylum Seeker Hotels as UK Faces Record Accommodation Costs and Announces £11BN Defence Boost

Who, What, When, Where, Why, and How

In June 2025, Rachel Reeves, the UK Chancellor, made a public commitment to end the use of expensive hotels for asylum seekers. At the same time, she announced an £11 billion boost to defence spending, signaling a shift in government priorities. This pledge comes as the United Kingdom 🇬🇧 faces record-high numbers of asylum seekers in temporary hotel accommodation and mounting costs that have drawn criticism from across the political spectrum. The government’s approach to asylum accommodation, its financial impact, and the practical effects on communities and asylum seekers themselves are now under intense scrutiny.

The Scale of the Challenge: Record Numbers and Soaring Costs

As of March 2025, more than 32,000 asylum seekers were living in hotels across the United Kingdom 🇬🇧. The total number of people in all forms of asylum accommodation reached about 102,000 by June 2025. The number of hotels in use for this purpose has actually increased since Labour came to power in July 2024, rising from 213 to 216 by March 2025. This trend runs counter to Labour’s pledge to reduce reliance on hotels.

The financial burden is staggering. According to the National Audit Office, the projected total cost for asylum accommodation has soared to £15.3 billion, a dramatic increase from the £4.5 billion estimate made in 2019. Of this, £1.3 billion was spent on hotel accommodation alone in the 2024–25 year. This means that three-quarters of all asylum accommodation spending went to hotels, which are on average seven times more expensive than other types of accommodation.

Why Are Hotels Still Being Used?

Despite promises to move away from hotel accommodation, the government’s latest policy guidance (updated 4 June 2025) continues to allow hotels as “initial accommodation” under section 95 of the Immigration and Asylum Act 1999. The stated intention is to prioritize dispersal accommodation—where asylum seekers are housed in communities across the country—but ongoing shortages and a backlog in asylum applications have forced continued reliance on hotels.

Labour’s Pledge and Recent Developments

Labour, under the leadership of Rachel Reeves and Dame Angela Eagle MP (Minister for Border Security and Asylum), has made ending hotel use a central promise. However, there is no specific deadline for achieving this goal. The government has taken some steps, such as closing 13 hotels between January and April 2025 and announcing that hundreds of asylum seekers will be moved out of nine more hotels by July. Still, the overall number of hotels in use and asylum seekers housed in them has increased.

Dame Angela Eagle has acknowledged these challenges, stating that while the ambition is to exit hotel use, the numbers have not yet started to fall. This has led to criticism from groups like Migration Watch UK and the TaxPayers’ Alliance, who argue that the continued use of hotels is both a “magnet” for migration and a heavy burden on taxpayers.

How the System Works: Step-by-Step Process

1. Asylum Application: Individuals apply for asylum in the United Kingdom 🇬🇧 and are assessed for eligibility for support.
2. Accommodation Allocation: If eligible, accommodation is allocated on a “no choice basis.” The government tries to use dispersal accommodation first, but due to shortages, many are placed in hotels.
3. Notification of Needs: Asylum seekers must inform Migrant Help (the official Home Office partner) about their support grant and any special needs, such as health issues or pregnancy.
4. Move-On Period: For those granted asylum, the “move-on period”—the time allowed to find alternative housing and access benefits—was extended from 28 to 56 days in a pilot program running until June 2025.

For more details on the asylum accommodation process, readers can visit the official Home Office guidance on asylum support.

Living Conditions and Community Impact

Hotels are not designed for long-term living. Many asylum seekers report inadequate conditions, lack of privacy, and limited access to basic services. These problems are especially serious for women and children, who may face safeguarding risks. The use of hotels also affects local communities, as hotels are withdrawn from their normal use, sometimes leading to resentment and protests.

Cost to Taxpayers and Systemic Issues

The cost of using hotels is a major concern. At £1.3 billion per year, hotel accommodation is much more expensive than other options. Critics like William Yarwood from the TaxPayers’ Alliance have called this spending “indefensible” and urged ministers to stop what they describe as an “open-chequebook approach.”

The main reason for this heavy reliance on hotels is a backlog in asylum applications and a shortage of long-term housing. The system has struggled to keep up with rising numbers of asylum seekers, leading to bottlenecks and delays.

Expert Analysis: What Needs to Change?

Analysis from VisaVerge.com suggests that the United Kingdom 🇬🇧 stands out in Europe for its heavy use of hotels for asylum seekers. While some regions have seen a decline in hotel use, numbers are still rising in London and the South East. Experts from the Migration Observatory argue that headline-driven policies, such as large sites or barges, have not solved the problem. Instead, they recommend:

• Faster and fairer asylum decisions to reduce the backlog
• Better partnership with local authorities to increase dispersal accommodation
• A permanent extension of the move-on period for new refugees, giving them more time to find housing and support

Groups like HIAS+JCORE support these changes, saying they would lead to a fairer and more humane system.

Historical Background: How Did We Get Here?

The use of hotels as emergency accommodation for asylum seekers began to surge between 2019 and 2024. This was due to a sharp increase in asylum claims and a lack of available dispersal housing. In 2022, the government introduced the “full dispersal model,” which required all local authorities to accept asylum seekers in proportion to their population. However, this did not solve the shortage of suitable housing.

Between 2023 and 2024, the government tried using large sites, such as former military bases and barges, but these faced criticism over cost and living conditions. When Labour took office in 2024, they inherited a system with rising hotel use and costs, despite earlier promises to reduce both.

Recent Policy Changes and the Path Forward

The government’s latest guidance, published in June 2025, continues to allocate accommodation on a “no choice basis.” While dispersal accommodation is the priority, hotels and hostels are still used when needed. The Home Office is currently reviewing its suitability criteria and allocation process, especially in light of recent High Court rulings and equality impact assessments.

The pilot program extending the move-on period to 56 days is set to end in June 2025. Campaigners are pushing for this change to become permanent, arguing that it gives new refugees a better chance to find stable housing and avoid homelessness.

The £11BN Defence Boost: Shifting Priorities

Alongside the focus on asylum accommodation, Rachel Reeves has announced an £11 billion boost to defence spending. Details of how this money will be spent are expected in the next budget. This move has raised questions about how the government will balance defence, immigration, and other spending priorities.

Stakeholder Perspectives: Multiple Voices in the Debate

• Government: Rachel Reeves and Dame Angela Eagle have reaffirmed their commitment to ending hotel use, but admit that progress has been slow.
• Critics: Alp Mehmet of Migration Watch UK and William Yarwood of the TaxPayers’ Alliance have criticized the ongoing costs and called for urgent action.
• Experts and Campaigners: The Migration Observatory and HIAS+JCORE argue for systemic reforms, including faster asylum decisions and more community-based accommodation.
• Local Communities: Some communities have protested the use of local hotels for asylum seekers, citing concerns about resources and the loss of community spaces.
• Asylum Seekers: Many report poor living conditions in hotels and uncertainty about their future.

Summary Table: Asylum Accommodation in the UK (June 2025)

Practical Guidance for Asylum Seekers and Stakeholders

• For Asylum Seekers: If you need help with accommodation or support, contact Migrant Help, the official Home Office partner.
• For Local Authorities: Stay updated with the latest Home Office guidance and prepare for changes in dispersal accommodation requirements.
• For Advocates and Campaigners: Monitor the outcome of the move-on period pilot and push for permanent reforms that support new refugees.
• For Taxpayers and the Public: Review spending reports from the National Audit Office to understand how public funds are being used.

Future Outlook: What Happens Next?

Labour’s stated goal is to end the use of hotels for asylum seekers by the end of the current parliament, likely by 2029. However, without a clear deadline or detailed implementation plan, progress remains uncertain. The Home Office is reviewing its policies, and the pilot move-on period may become permanent if campaigners succeed.

The £11 billion defence boost will be detailed in the next budget, which could affect how much money is available for asylum accommodation and other public services. Stakeholders across the spectrum agree that faster asylum decisions, more dispersal accommodation, and better support for new refugees are needed to fix the system.

Conclusion

Despite high-profile pledges from Labour and Chancellor Rachel Reeves to end the use of hotels for asylum seekers, the latest data shows that hotel use and costs remain at record highs. The government has closed some hotels and is piloting reforms, but systemic issues—such as backlogs, housing shortages, and policy complexity—persist. The £11 billion defence boost signals shifting spending priorities, but concrete timelines and detailed plans for ending hotel use are still awaited. Stakeholders call for faster asylum decisions, more community-based accommodation, and a permanent extension of support for new refugees.

For the most current updates, refer to the Home Office’s official asylum accommodation guidance and the National Audit Office’s reports on asylum spending.

Learn Today

Asylum seeker → A person requesting protection in the UK due to fear of persecution in their home country.
Dispersal accommodation → Housing asylum seekers in various community locations instead of centralized or hotel settings.
Move-on period → The time granted to refugees to find permanent housing after receiving asylum status.
Immigration and Asylum Act 1999 → UK legislation that outlines rights and procedures for asylum seekers and immigration.
National Audit Office → An independent UK body that audits government spending, including asylum accommodation costs.

This Article in a Nutshell

Rachel Reeves pledged to stop costly asylum hotels as UK faces £15.3 billion accommodation costs. Labour struggles with rising hotel use despite closures, while an £11 billion defense boost signals shifting priorities for 2025 and beyond.
— By VisaVerge.com