Britain’s asylum work ban risks failing claimants and the economy

Britain’s government has reaffirmed one of Europe’s toughest bans on work for asylum-seekers, resisting months of pressure from councils, charities, employers, and a public largely in favor of reform. In a letter to Glasgow City Council dated February 18, 2025, Angela Eagle, Minister for Border Security and Asylum, said there are “no immediate plans to change the existing policy on permission to work for asylum seekers.” That stance keeps the core rule in place: people seeking protection are barred from working while their claim is decided, with a narrow exception only after 12 months of waiting if delays are not their fault and then only for jobs on the Immigration Salary List.

Scale of demand and service pressures

The decision lands amid record demand and stretched public support systems. In the year ending June 2025, the UK recorded 111,000 asylum applications, up 14% from the previous year and the highest since records began in 1979.

As of March 31, 2025:

• 109,536 people (main applicants and dependents) were awaiting an initial decision.
• 67,373 had been waiting more than six months but still could not lawfully work.

The Home Office has reduced parts of the backlog during Labour’s first term, yet appeals are rising and many families still face long waits.

Financial support and living conditions

While staying idle, most asylum-seekers must live on low state support. Early in 2025 the government cut the allowance for those in catered accommodation to £8.86 per week, while people in self-catered settings receive £49.18 per week. Charities warn these amounts push people into deep poverty given rising housing and food costs.

Housing breakdown at the end of Q1 2025:

Charities say hotel stays and dispersal placements compound social isolation and increase costs for local authorities.

Policy decisions and limited exceptions

Under current rules:

• The general ban blocks work for anyone waiting on an asylum decision.
• The single exception allows an application for permission to work after 12 months of pending status, but only if the delay is not the applicant’s fault.
• Even then, any approved job must be on the Immigration Salary List (which replaced the Shortage Occupation List in April 2024).

Some people can still work because they applied for asylum while holding a valid work visa. These individuals retain their right to work under prior visa conditions via Section 3C Leave. For everyone else, guidance from the Home Office makes clear approvals are narrow and linked to listed roles. Readers can view the official policy here: Home Office guidance on permission to work for asylum seekers.

Local leaders and advocates argue the approach is costly and harmful:

• Glasgow City Council highlights local taxpayer bills for hotel use and emergency measures.
• Positive Action in Housing says the rules trap families in long-term dependence.
• Refugee Action and the Lift the Ban coalition (over 300 organizations) say the policy wastes skills and blocks self-support.

A 2025 YouGov poll found 81% support allowing people to work after six months, including a majority of Conservative voters. Business groups note shortages in social care, hospitality, and construction and argue that careful easing — with checks and time limits — would reduce labour gaps without inviting abuse.

Human impact

The human toll is vivid and immediate:

• Prolonged exclusion from work harms mental health and erodes confidence.
• People lose touch with professions and fall behind on English language skills.
• Parents report skipping meals so children can eat.
• Young adults grow isolated in hotel rooms miles from families and community resources.

These effects influence how quickly people can settle if granted asylum and how well they can rebuild after trauma. Without bank accounts, stable addresses, or steady income, families struggle with school uniforms, transport, and other basic needs not covered by the NHS.

Economic arguments

Research by the Lift the Ban coalition (May 2025) estimates:

• If half of those stuck waiting over six months could work, the UK would gain more than £260.5 million per year in tax and National Insurance, plus lower asylum support costs.

Other economic points:

• Employers could tap talent already in-country, reducing recruitment and training costs.
• VisaVerge.com analysis suggests the Treasury forgoes potential revenue while local services bear accommodation and subsistence bills.

Ministers counter that tight work restrictions protect the asylum system from misuse, arguing that open access to jobs could encourage economic migrants to claim asylum. Officials stress that work rights limited to shortage roles preserve labour market balance and system integrity. Angela Eagle has emphasized distinguishing those “seeking protection” from those “seeking work.”

Advocates rebut that people do not risk lives to cross borders because of UK job rules and point to international evidence showing work rights do not drive asylum flows. They argue the current approach punishes vulnerable people and raises public costs through hotel stays and long-term support.

Daily consequences for services and communities

Policy limits affect:

• Access to bank accounts, stable housing, and routine purchases.
• Children’s schooling due to frequent moves.
• Legal case progress when families are housed far from advisors.
• Local economies and tourism when hotels are used for emergency accommodation.
• Councils burdened with extra demands for social care, translation, and safeguarding.

Caseworkers report that many clients could become self-sufficient within weeks if allowed lawful work.

Current review and proposed changes

The government says policies are “under review,” but the core stance remained unchanged through mid-September 2025. A White Paper released in May 2025 proposed abolishing the Immigration Salary List, though it is unclear whether Parliament will back that policy change or what would replace it.

The asylum system’s status is mixed:

• Initial backlogs are falling in some areas.
• Fresh claims remain high.
• The appeals queue is growing.

Practical steps for people claiming asylum

In plain terms, the pathway currently is:

1. Apply for asylum with the Home Office.
2. During the first 12 months, there is no right to work — unless you retain work rights under a previous visa (Section 3C Leave).
3. After 12 months, if the delay is not your fault, you may ask the Home Office for permission to work.
4. If granted, work is limited to roles on the Immigration Salary List, and permission must be shown to the employer.

People with pending claims are barred from mainstream benefits and must rely on the small asylum allowance and housing support.

Positions and prospects

Supporters of reform typically propose:

• A time-limited right to work after six months.
• Safeguards such as role limits, checks, and temporary permissions.

They argue reform would:

• Cut taxpayer bills.
• Improve mental health and skills retention.
• Speed integration for those who win refugee status.

Ministers maintain that loosening rules risks blurring asylum and economic migration and that faster processing should be the priority. Processing capacity has increased since 2023–2024, but lawyers say legal complexity and frequent changes keep timelines long.

Today, the UK remains more restrictive than many European neighbours that allow earlier work access. Critics warn the current model entrenches dependency and weakens future job prospects, while supporters view it as necessary to keep the asylum route focused on protection.

For now, Britain’s rules stay tight: no immediate policy change is on the horizon, despite pressure from councils, employers, charities, and broad public support for a measured shift.