Key Takeaways
• Labour’s 2025 reforms raise Skilled Worker visa salary to £41,700, tightening immigration rules from July 22, 2025.
• Asylum backlog: 79,000 initial applications and 51,000 appeals pending, with spending on accommodation and basic support.
• No £60 million fund exists for illegal immigrants’ legal fights; funding covers asylum basics and administration only.
As of July 5, 2025, claims that the Labour government has handed “illegal immigrants £60 million to fight asylum claims” have no basis in fact, according to official records and expert analysis. This story, which has circulated in some media and online discussions, misrepresents the actual direction of UK immigration policy and government spending under the Labour government. Instead, the real story is about stricter immigration controls, rising costs for basic asylum support, and ongoing challenges in the asylum system.
Let’s break down what’s really happening with the Labour government’s immigration policies, the facts about spending, and what this means for people seeking asylum, employers, and the wider public.

Labour Government’s 2025 Immigration Reforms: What’s Changed?
In May 2025, the Labour government released a white paper called “Restoring Control over the Immigration System.” This document set out a new approach to immigration, focusing on reducing the number of people coming to the United Kingdom 🇬🇧, especially for lower-skilled jobs. The main changes include:
- Raising the skill and salary requirements for work visas. For example, the minimum salary for a Skilled Worker visa will rise to £41,700 per year starting July 22, 2025. The required skill level for most jobs will also go up, making it harder for people in lower-skilled roles to qualify for a visa.
- Increasing the time needed to settle in the United Kingdom 🇬🇧. Most people will now need to live in the country for ten years (up from five) before they can apply for permanent residency.
- Tougher English language rules for both main applicants and their family members.
- No new funding or policy has been announced that would give money directly to “illegal immigrants” to help them fight asylum claims or deportation.
These changes are designed to make it harder for people to move to the United Kingdom 🇬🇧 unless they have high skills or meet strict requirements. The government says this will help control migration and make the system fairer.
The Asylum Backlog: Where Is the Money Going?
One of the biggest challenges facing the Labour government is the large number of people waiting for decisions on their asylum claims. As of March 2025, there were about 79,000 initial asylum applications still waiting for a decision. The number of appeals—cases where people challenge a refusal—has also grown quickly, with 51,000 cases in the backlog, a 53% increase since June 2024.
The government has spent more money on asylum support, but this is mostly for:
- Accommodation: Many asylum seekers are housed in hotels or other temporary places while they wait for a decision. This is expensive and has been criticized by both politicians and the public.
- Basic living support: Asylum seekers get a small amount of money to cover food and other essentials while their claims are processed.
- Legal aid: Some asylum seekers can get help with legal costs, but only if they meet strict rules about income and the type of case. This is not new and is not a Labour government invention—it has been part of the UK system for many years.
There is no evidence of a £60 million fund given to “illegal immigrants” for legal battles. The money being spent is for basic needs and the running of the asylum system, not for paying people to fight their cases.
Border Security, Asylum, and Immigration Bill 2025: Tougher Enforcement
The Labour government’s main new law on immigration, debated in early 2025, is called the Border Security, Asylum, and Immigration Bill 2025. This law aims to:
- Make irregular migration a crime: People who enter the United Kingdom 🇬🇧 without permission face tougher penalties.
- Create a new Border Security Command: This team of 300 officials and 100 specialist investigators will focus on stopping smuggling gangs and speeding up removals of people who have no right to stay.
- Increase deportations: Since the 2024 election, the government has deported 18,897 “foreign criminals,” the highest number since 2017.
The bill does not include any new money for legal challenges by irregular migrants. Instead, it focuses on making it harder for people to stay in the country if they do not have the right paperwork.
What Do Experts and Stakeholders Say?
Many experts, including immigration lawyers and human rights groups, have criticized the Labour government’s approach. They say the new rules are some of the strictest the United Kingdom 🇬🇧 has ever seen. Some worry that the policies could break international laws by permanently blocking certain asylum seekers from ever becoming citizens.
In Parliament, there have been heated debates about the high cost of housing asylum seekers and the slow pace of decision-making. Some members have suggested that letting asylum seekers work while they wait for a decision could save money and help people support themselves. However, the government has not made any changes in this area.
Importantly, no official or expert source has confirmed the claim that £60 million has been given to “illegal immigrants” for legal action. The money being spent is for accommodation, food, and the basic running of the system—not for legal battles.
How Is the Money Really Being Spent?
The Home Office—the government department in charge of immigration—has a growing budget for asylum support. This covers:
- Accommodation costs: With more people waiting for decisions, the government is spending more on hotels and other temporary housing.
- Basic support payments: Asylum seekers get a small weekly allowance for food and essentials.
- Administration: Running the system, processing claims, and managing appeals all cost money.
Legal aid is available for some asylum seekers, but it is means-tested. This means only people with very little money can get help, and only for certain types of cases. There has been no recent increase or special fund of £60 million for legal aid.
If you want to learn more about legal aid for immigration cases, you can visit the UK government’s official legal aid page.
Background: How Did We Get Here?
The current situation is shaped by laws passed by both the previous Conservative government and the current Labour government:
- The Illegal Migration Act 2023 (from the Conservative government) made it impossible for people who arrived after March 7, 2023, to ever get legal status in the United Kingdom 🇬🇧. This has added to the backlog of cases.
- Labour’s 2025 reforms have focused on making it harder to come to the United Kingdom 🇬🇧 and stay, not on giving more support to irregular migrants.
- The delays and high costs in the asylum system are mostly due to the large number of cases and the slow pace of decision-making, not because of direct payments to migrants for legal challenges.
What Does This Mean for Asylum Seekers?
For people seeking asylum, the reality is tough:
- Long waits: Many people wait months or even years for a decision on their claim.
- Limited rights: Asylum seekers cannot work in most cases and must live on a small allowance.
- Basic support only: The government provides accommodation and a small amount of money for essentials, but nothing more.
- Legal aid is limited: Only those who meet strict rules can get help with legal costs, and there is no new or expanded fund for this.
As reported by VisaVerge.com, the main challenge for asylum seekers is the slow system and limited support, not a sudden windfall of government money.
What About Employers and Businesses?
The new rules also affect employers who want to hire workers from outside the United Kingdom 🇬🇧:
- Higher salary and skill thresholds: It is now much harder to sponsor workers for lower-skilled jobs. Employers must pay higher salaries and show that jobs require advanced skills.
- Fewer eligible roles: Many jobs that used to qualify for work visas no longer do, making it harder for some businesses to fill vacancies.
- Longer path to settlement: Workers must now wait ten years before they can apply for permanent residency, which may make the United Kingdom 🇬🇧 less attractive for some skilled migrants.
These changes are designed to reduce net migration, but they also make it harder for businesses to find workers in some sectors.
Looking Ahead: What’s Next for UK Immigration Policy?
The Labour government has not set a clear date for when the asylum backlog will be cleared. More changes to the system are likely, especially as courts and international bodies review whether the new rules meet the United Kingdom’s 🇬🇧 obligations under refugee law.
Key points to watch in the coming months:
- Possible legal challenges: Human rights groups and lawyers may take the government to court over some of the new rules.
- Further reforms: The government may introduce more changes to speed up decisions or reduce costs.
- Ongoing debate: Politicians, experts, and the public will continue to discuss the best way to balance border control, humanitarian responsibilities, and the needs of the economy.
Where Can You Find Official Information?
If you want to check the latest official rules and updates, you can visit the UK Home Office immigration page. This site has up-to-date information on visas, asylum, and other immigration matters.
For independent analysis and statistics, the Migration Observatory at Oxford University is a trusted source.
Conclusion: No £60 Million Payout to Illegal Immigrants
In summary, there is no credible evidence that the Labour government has given £60 million to “illegal immigrants” to fight asylum claims. The real story is about:
- Stricter rules for who can come to the United Kingdom 🇬🇧 and stay.
- Rising costs for basic support and accommodation, not legal battles.
- A growing backlog of asylum claims and appeals, making the system slow and expensive.
- No new or special funding for legal challenges by irregular migrants.
The government’s focus is on reducing migration, tightening controls, and speeding up removals—not on expanding legal support for people without status. For those affected, the system remains tough, with long waits and limited support. Employers also face new hurdles in hiring overseas workers.
For the most accurate and current information, always rely on official government sources and trusted independent organizations. If you are seeking asylum or need legal help, check your eligibility for legal aid through the official legal aid eligibility tool.
The debate over immigration policy in the United Kingdom 🇬🇧 will continue, but it is important to separate fact from fiction and understand the real impact of government decisions on people’s lives.
Learn Today
Skilled Worker visa → A UK visa requiring specific skills and salary for foreign workers to live and work legally.
Asylum claims → Requests made by individuals seeking protection from persecution or danger in their home countries.
Legal aid → Financial assistance for eligible individuals to cover legal costs in asylum or immigration cases.
Illegal Migration Act 2023 → UK law prohibiting legal status for those arriving irregularly after March 7, 2023.
Border Security Command → A new unit of officials and investigators targeting smuggling gangs and enforcing immigration laws.
This Article in a Nutshell
Labour’s 2025 immigration reforms tighten visa requirements and extend residency wait times. Asylum system struggles with backlog and high costs. No £60 million fund supports illegal immigrants’ legal cases. Instead, funding focuses on basic support and enforcement, reflecting a tougher immigration control approach under Labour’s government.
— By VisaVerge.com