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UK asylum seekers face £10,000 charge before they can apply to settle

Published by Global Banking & Finance Review

Posted on June 29, 2026

2 min read

· Last updated: June 29, 2026

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UK Asylum Seekers Could Be Charged £10,000 Before Applying to Settle

Government Proposals to Deter Illegal Migration

Overview of the Proposed Charges

LONDON, June 29 (Reuters) - Asylum seekers in Britain could have to repay the state around £10,000 ($13,222) for accommodation and basic living support before becoming eligible to apply for settlement, the government said on Monday in its latest effort to deter illegal migration.

Political Context and Public Opinion

Immigration is one of the most contested issues in British politics, consistently ranking among voters' top concerns in opinion polls and at times fuelling protests and community tension.

The centre-left Labour Party has ratcheted up efforts to stop migrants arriving both legally and illegally, seeking to counter the rise of Nigel Farage's Reform UK party, which has promised to deport up to 600,000 asylum seekers.

Statements from Government Officials

Interior minister Shabana Mahmood said her latest reforms were designed to reduce the burden on taxpayers.

"Receiving asylum support is a right, but it is also a responsibility," she said. "Once people can contribute and repay the generosity of the British people, we expect them to do so."

Details of the Proposed Rules

Eligibility and Safeguards

Under the proposed rules, only adults who can afford to pay would be charged, with safeguards to prevent them being pushed into destitution, the government said. The rules would not be applied retrospectively and children would be exempt.

Political Sensitivity and Labour Party Response

The latest measures come at a politically sensitive moment for the Labour Party, which has faced internal divisions over how far to tighten immigration policy, as well as broader uncertainty following Keir Starmer's announcement that he will step down as prime minister.

Financial Impact of Asylum Support

Cost Estimates

The interior ministry estimates that accommodating asylum seekers costs an average of £23.25 per person per night in temporary housing and £144 in hotels, plus a weekly subsistence payment. In total the annual cost of asylum accommodation and support was estimated at about £4 billion last year.

Currency Exchange Rate

($1 = 0.7563 pounds)

Reporting Credits

(Reporting by Sam Tabahriti; editing by William James)

Key Takeaways

  • Asylum seekers may be charged up to £10,000 for housing and support costs before settlement eligibility.
  • Exemptions include children and safeguards for those unable to pay to avoid destitution.
  • The policy aims to reduce taxpayer burden and comes amid political pressure on Labour and Starmer's impending departure announcement (June 22, 2026).

Frequently Asked Questions

What is the proposed charge for UK asylum seekers before they can apply to settle?
Asylum seekers may need to repay the state around £10,000 for accommodation and living support before being eligible to apply for settlement.
Who will be required to pay the asylum settlement charge?
Only adults who can afford to pay will be charged under the proposed rules, with exemptions for children and safeguards to prevent destitution.
Will the new rules apply retrospectively to existing asylum seekers?
No, the government has said the rules would not be applied retrospectively.
How much does the UK government spend annually on asylum accommodation and support?
The estimated annual cost of asylum accommodation and support in the UK was about £4 billion last year.
What is the main purpose of this new government policy?
The policy aims to reduce the burden on taxpayers and deter illegal migration by requiring some asylum seekers to repay state support before settling.

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