Finance
UK Will End Use of Hotels for Asylum Seekers by 2029, Reeves Says
Published by Global Banking & Finance Review®
Posted on June 11, 2025
1 min readLast updated: January 23, 2026
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The UK will end hotel accommodations for asylum seekers by 2029, saving £1 billion annually, according to finance minister Rachel Reeves.
UK to Phase Out Hotel Accommodations for Asylum Seekers by 2029
LONDON (Reuters) -Britain will end the use of hotels to house asylum seekers before the next election in 2029, finance minister Rachel Reeves said on Wednesday, in a move which will save 1 billion pounds ($1.35 billion) a year.
"We will be ending the costly use of hotels to house asylum seekers in this parliament," she said in a speech setting out spending plans for the coming years.
Reeves said she would end the use of hotels by providing funding to cut the asylum backlog, hear more appeal cases and return those refused asylum.
($1 = 0.7416 pounds)
(Reporting by David Milliken, writing by Sarah Young, editing by Catarina Demony)
Key Takeaways
- •UK to end hotel use for asylum seekers by 2029.
- •Move will save £1 billion annually.
- •Funding to cut asylum backlog and process appeals.
- •Rachel Reeves outlines spending plans.
- •Focus on efficient asylum case handling.
Frequently Asked Questions about UK will end use of hotels for asylum seekers by 2029, Reeves says
1What did Rachel Reeves announce regarding asylum seekers?
Rachel Reeves announced that the UK will end the use of hotels to house asylum seekers before the next election in 2029.
2How much money will the UK save by ending hotel use for asylum seekers?
The move is expected to save the UK 1 billion pounds.
3What strategies will be implemented to end hotel accommodations?
Reeves stated that funding will be provided to cut the asylum backlog, hear more appeal cases, and return those who have been refused asylum.
