Key Takeaways
• Two UK asylum firm directors shared €4.68 million in compensation, raising cost and transparency concerns.
• UK Home Office spends £3 billion yearly on asylum housing, using over 400 hotels by mid-2023.
• New policies aim to reduce hotel use, save £4 billion by 2026, and extend refugees’ move-on period.
Two Directors at Major UK Asylum Seeker Accommodation Firm Shared €4.68m in Compensation: What This Means for the UK Asylum System
Two directors at a leading UK asylum seeker accommodation firm reportedly shared €4.68 million in compensation, raising questions about the costs, funding, and management of the UK’s asylum accommodation system. This development comes at a time when the United Kingdom 🇬🇧 faces ongoing debates over the financial and social impact of housing asylum seekers, as well as the effectiveness of government policies designed to manage these pressures.
This article explains how the UK asylum accommodation system works, who the main players are, how much is spent on housing asylum seekers, and what recent policy changes mean for local communities, taxpayers, and asylum seekers themselves. We also explore the broader context of director compensation in this sector and what it reveals about the intersection of public contracts and private profit.
How the UK Asylum Accommodation System Works
The UK government is legally required to provide accommodation and basic support to asylum seekers who would otherwise be destitute while their claims are processed. This responsibility falls under the Home Office, which manages the system through large contracts with private companies.
Asylum Accommodation and Support Contracts (AASC)
Since September 2019, the UK’s asylum accommodation has been managed through Asylum Accommodation and Support Contracts (AASC). These contracts replaced the earlier COMPASS system and are scheduled to run until September 2029. When first announced, the Home Office estimated the total value of these contracts at £4 billion over ten years.
The AASC contracts were awarded to three main companies, each responsible for different regions of the UK. These firms handle:
- Arranging contracts with hotels and other accommodation providers
- Providing related services such as meals, cleaning, and security
- Maintaining properties and ensuring they meet required standards
- Conducting regular inspections to check on conditions
These companies play a central role in the daily lives of thousands of asylum seekers, making decisions about where people live and under what conditions.
The Scale and Cost of Asylum Accommodation
The number of asylum seekers in the UK has grown in recent years, leading to a rapid expansion of the accommodation system. This has had a direct impact on costs and the types of accommodation used.
Growth in Hotel Use
- End of 2019: Only 24 hotels were used to house asylum seekers.
- Late 2020: The number rose to 100 hotels.
- End of 2021: This doubled again to 207 hotels.
- Mid-2023: Over 400 hotels were under contract, accounting for about 5% of all hotel room nights sold in the UK.
- In some local areas, asylum accommodation contracts now account for up to 25% of all hotel rooms.
This dramatic increase reflects both the rising number of asylum seekers and the challenges in finding suitable long-term housing.
Financial Impact
The cost of asylum accommodation has soared:
- 2022/2023: The Home Office spent about £3 billion on asylum accommodation—75% of the original 10-year budget in just one year.
- Daily hotel costs: These have dropped from over £9 million per day to under £6 million per day as of March 2025.
- Planned savings: The government aims to save £200 million in 2024-25 and £700 million in the following year, with a total planned saving of over £4 billion across 2024-25 and 2025-26 compared to previous spending trends.
These figures highlight the enormous financial pressure on the asylum system and the urgent need for cost control.
Director Compensation: Public Contracts and Private Profit
The news that two directors at a major UK asylum seeker accommodation firm shared €4.68 million in compensation has sparked debate about the role of private companies in public services.
Why Is Director Compensation Controversial?
- Public money: The funds used to pay for asylum accommodation come from UK taxpayers.
- Profit from public contracts: Large sums paid to company directors can raise concerns about whether public money is being used efficiently.
- Service quality: There are ongoing questions about whether high executive pay is justified given reported issues with accommodation standards.
According to analysis by VisaVerge.com, the intersection of public funding and private profit in the asylum accommodation sector is a recurring source of controversy, especially when large payments to directors are revealed.
How Is Compensation Determined?
Director compensation in private firms is typically set by company boards and can include salary, bonuses, and other benefits. In the context of public contracts, these payments are funded indirectly by government spending. While companies argue that high pay attracts experienced leaders, critics say it can divert resources away from frontline services.
How Much Support Do Asylum Seekers Receive?
While some company directors receive large compensation packages, the financial support given to asylum seekers themselves is much lower.
Current Support Rates (as of May 2025)
- Self-catered accommodation or subsistence-only support: £49.18 per person per week (about £7 per day)
- Full board accommodation: £8.86 per week (reduced from £9.58 in January 2024)
This level of support is below the poverty line. Advocacy groups such as Asylum Matters have called for an increase to at least 70% of the Universal Credit rate for over-25s.
Example Scenario
A family of four in self-catered accommodation would receive just under £200 per week to cover all living costs except rent and utilities. This makes it extremely difficult for families to afford essentials like food, clothing, and transport.
Funding for Local Authorities
Local councils play a key role in supporting asylum seekers, especially as the government tries to move people out of hotels and into community-based accommodation.
Funding Structure for 2025-2026
- Annual payment: £1,200 per asylum seeker for local authorities accommodating asylum seekers as of March 30, 2025 (paid by June 30, 2025)
- Additional payments: £100 per month for each extra occupied bed space between April 1, 2025, and March 31, 2026 (if occupancy increases above the March 31, 2025 figure)
- Applies to all accommodation types: Dispersal Accommodation (DA), Overflow Dispersal Accommodation (ODA), Initial Accommodation (IA), Contingency Accommodation (CA), Medium Sites, and Local Authority-led pilots
This funding is designed to help councils cover the extra costs of supporting asylum seekers, such as social services, education, and healthcare.
Government Efforts to Reduce Hotel Use
Both the previous Conservative government and the current Labour government (in power since July 2024) have promised to end the use of hotels for asylum seekers. The goal is to reduce costs and improve integration by moving people into more stable, community-based housing.
Key Strategies
- Full Dispersal Model
- Introduced in March 2023, this policy requires all local authority areas to accept asylum seekers, with numbers based on local population.
- Progress: In April 2022, 52% of local authorities had no asylum seekers in dispersal accommodation. By December 2023, this dropped to 30%.
- Large-Scale Accommodation Facilities
- The government has opened sites such as RAF Wethersfield in Essex and the Bibby Stockholm barge in Dorset to house large numbers of asylum seekers.
- Room Sharing Policy
- Announced in June 2023, this policy requires unrelated same-sex asylum seekers to share hotel rooms where appropriate.
- Impact: Created an extra 11,500 places and is expected to save £250 million per year.
These measures are designed to reduce reliance on expensive hotels and make the system more sustainable.
Recent Policy Developments
The government has introduced several changes to improve the asylum system and reduce costs.
Extension of the “Move-On Period”
In December 2024, a pilot program was launched to extend the “move-on period” for successful asylum applicants from 28 to 56 days. This gives newly recognized refugees more time to find housing and access benefits. The pilot runs until June 2025, and organizations like HIAS+JCORE are urging the government to make this change permanent.
New Proposals on Immigration Control
In May 2025, the government published “Restoring Control over the Immigration System,” a proposal aimed at reducing regular migration. While details about asylum accommodation were not included, this signals a broader effort to tighten immigration rules.
The Human Impact: What Does This Mean for Asylum Seekers?
While the focus is often on costs and contracts, it’s important to remember the real people affected by these policies.
Living Conditions
Many asylum seekers spend months or even years in temporary accommodation, often in hotels or large facilities. Reports have highlighted problems such as:
- Overcrowding
- Lack of privacy
- Limited access to cooking facilities
- Isolation from local communities
These conditions can have a serious impact on mental health and make it harder for people to rebuild their lives.
Financial Hardship
With support rates set well below the poverty line, many asylum seekers struggle to afford basic necessities. This can lead to increased reliance on food banks and local charities.
Uncertainty and Delays
Long waits for decisions on asylum claims mean that people can spend years in limbo, unable to work or plan for the future.
Example: A Family’s Experience
A family from Syria arrived in the UK seeking safety. They were placed in a hotel in a small town, far from any relatives or community support. With only £49.18 per person per week, they found it difficult to buy enough food and clothing for their children. After several months, they were moved to dispersal accommodation, but the uncertainty and lack of stability made it hard for the children to settle in school.
The Role of Accommodation Firms
Private companies play a central role in the UK asylum accommodation system. They are responsible for delivering services under strict government contracts, but they also operate for profit.
Accountability and Oversight
- Inspections: The Home Office conducts regular inspections to check on accommodation standards.
- Complaints: Asylum seekers can raise concerns about conditions, but there are often delays in resolving issues.
- Transparency: There is ongoing debate about how much information companies should disclose about their finances, including director compensation.
What’s Next for the UK Asylum Accommodation System?
The UK government faces a difficult balancing act:
- Reducing costs while ensuring decent living conditions for asylum seekers
- Supporting local authorities without overburdening communities
- Ensuring accountability for private firms receiving public money
The revelation that two directors at a major UK asylum seeker accommodation firm shared €4.68 million in compensation highlights the need for greater transparency and public debate about how the system is managed.
Practical Guidance for Stakeholders
- Asylum seekers: If you need support, you can find information about applying for asylum and available accommodation on the UK government’s official asylum support page.
- Local authorities: Stay updated on funding arrangements and reporting requirements to ensure you receive the correct payments.
- Community groups: Advocate for higher support rates and better living conditions for asylum seekers in your area.
- Taxpayers: Monitor government spending and hold officials and contractors accountable for how public money is used.
Conclusion
The UK asylum accommodation system is under intense scrutiny due to rising costs, expanding use of hotels, and questions about the role of private companies. The news that two directors at a major UK asylum seeker accommodation firm shared €4.68 million in compensation has brought these issues into sharp focus. As the government seeks to reform the system, it will be essential to balance financial responsibility with compassion and fairness for those seeking safety in the United Kingdom 🇬🇧.
For ongoing updates and in-depth analysis of UK immigration policies, VisaVerge.com reports that transparency and accountability in the asylum accommodation sector will remain key issues for policymakers, service providers, and the public.
Official government resource:
UK Government: Asylum Support – for up-to-date information on eligibility, application forms, and support rates.
Learn Today
Asylum Accommodation and Support Contracts (AASC) → Government contracts managing asylum seeker housing and services in the UK, active from 2019 to 2029.
Dispersal Accommodation (DA) → Housing model where asylum seekers are placed across local authority areas for integration and support.
Home Office → UK government department responsible for immigration, asylum, and law enforcement policies.
Move-on Period → Time granted to recognized refugees to find housing after asylum claim approval, recently extended from 28 to 56 days.
Private Profit → Earnings made by private companies from public contracts, raising concerns over public fund usage.
This Article in a Nutshell
Two directors at a UK asylum accommodation firm shared €4.68 million, spotlighting rising costs and transparency issues as the government seeks reforms amid growing asylum seeker housing demand and financial pressure.
— By VisaVerge.com
Read more:
• Georgetown scholar details harsh realities of immigration detention
• Republican NJ governor candidates clash over immigration in key debate
• Immigration policies prompt new fears of racial profiling with 287(g)
• UK proposes sweeping Immigration System changes in new white paper
• Huntsville grand jury indicts eight for federal immigration crimes
