Home Office to Announce Closure of 11 Asylum Hotels This Week
The Home Office is set to announce the closure of 11 asylum hotels this week, marking a significant step in its commitment to end all hotel use for asylum seekers by the conclusion of this parliamentary term. This move follows a pledge by the Labour government to phase out such accommodations, which have been a source of controversy since their widespread adoption during the Covid-19 pandemic.
Controversy and Protests Surrounding Asylum Hotels
The use of hotels to house asylum seekers has sparked intense debate and protests across the UK. Anti-migrant demonstrators have frequently gathered outside these facilities, arguing that asylum seekers are living in luxury conditions. In some instances, these protests have escalated into violence, such as an incident in Rotherham in August 2024, where protesters attempted to set fire to a hotel housing asylum seekers.
Currently, the government reports that nearly 200 hotels are in use, accommodating approximately 30,000 asylum seekers. An additional 70,000 individuals reside in other forms of accommodation, including shared housing and military barracks. Refugee non-governmental organizations (NGOs) have criticized hotels as unsuitable for long-term housing, citing health and safety concerns.
Parliamentary Investigation and Health Concerns
A parliamentary investigation has revealed that the government's asylum accommodation system is "failed, chaotic, and expensive," with billions of pounds squandered. Evidence presented during the investigation highlighted severe issues, such as the Red Cross diverting £220,000 from its disaster fund to clothe asylum seekers in hotels, some of whom had contracted scabies due to poor living conditions.
Upcoming Industry Day and Contract Re-tendering
This week, the Home Office will host a private "industry day" for current and potential future providers of asylum accommodation. Details of the event, including time and venue, are being withheld until the last minute, and attendees are required to sign non-disclosure agreements (NDAs). The meeting is related to the re-tendering of asylum contracts, set to run from September 1, 2029, to August 31, 2036, with a possible extension to August 31, 2039.
The new contract, known as Future Asylum Contracts Accommodation, is valued at approximately £10 billion and aims to reduce reliance on hotel accommodations. However, senior sources among current Home Office accommodation providers have expressed concerns that the new contracts may increase the number of contractors, potentially leading to inefficiencies and higher costs for taxpayers.
Funding and Budgetary Issues
The Home Office funds asylum accommodation through part of its overseas aid budget, a practice referred to as "in donor refugee costs." These costs decreased from £2.8 billion in 2024 to £2.4 billion in 2025. Gideon Rabinowitz, director of policy and advocacy at Bond, the UK network for NGOs in international development, has condemned this use of aid funds, arguing that while asylum seekers in the UK deserve support, the funding should come from Home Office budgets instead.
Rabinowitz noted that funding for global humanitarian programs fell by over £1 billion in 2025, with 18% of the aid budget diverted to cover asylum costs in the UK. This has led to the closure of critical programs, including education initiatives in Syria and healthcare projects across Africa, with further cuts expected to exacerbate the situation.
Government Response and Future Plans
A Home Office spokesperson stated, "This government is removing the incentives drawing illegal migrants to Britain and ramping up removals of those with no right to be here. That is why we are closing every asylum hotel and moving asylum seekers into basic accommodation, including ex-military sites." The spokesperson added that the population in asylum hotels has decreased by nearly 20% in the past year and by 45% since the peak under the previous government, resulting in cost savings of nearly £1 billion.
As the Home Office moves forward with its plans, the closure of these 11 hotels represents a pivotal moment in the ongoing effort to reform the UK's asylum accommodation system, addressing both humanitarian concerns and public backlash.
