Current Spending Levels on Asylum Support in the UK
Overview
In the financial year 2024–25, the Home Office's expenditure on asylum support reached a substantial £4.7 billion. Of this, approximately £3 billion was allocated specifically for housing asylum seekers in hotels. This equates to a daily spend of about £8 million.
Rising Annual Costs Per Person
The average annual cost of supporting an asylum seeker has seen a dramatic increase, rising from £17,000 in 2019/20 to around £41,000 in 2023/24. The primary driver behind this surge is the increased use of hotels, which are considerably more expensive than traditional dispersal accommodation.
Accommodation Cost Comparison
Hotel Accommodation: Costs approximately £145 per night per person.
Traditional Dispersal Housing: Costs about £14 per night per person.
Hotel vs Other Accommodation: Cost Analysis
Hotels remain the dominant cost driver in the government's asylum support strategy.
On average, accommodation in hotels costs £144.98 per person per night, in stark
contrast to dispersal housing, which costs only £23.25 per night. Despite housing
just 35% of asylum seekers, hotels accounted for a staggering 76% of the annual
accommodation costs. This disproportionate expenditure underscores the financial
strain imposed by reliance on hotel accommodation.
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