Labour pledge to end use of asylum hotels 'good for refugees, the taxpayer and communities'

Labour’s promise to end the use of asylum hotels has been welcomed by refugees and workers in the sector, but the government has been urged to ensure refugees are safely housed before its 2029 deadline. 

Chancellor Rachel Reeves pledged during her spending review on Wednesday (11 June) that the government will no longer house migrants and refugees in asylum hotels by 2029. She added that the government would cut the backlog in asylum applications to save £1 billion annually.

Outlining her spending review to MPs, Reeves said the Labour government would end the “costly use of hotels to house asylum seekers in this parliament”.

She added that the scheme involves “billions of pounds of taxpayers’ money spent on housing asylum seekers in hotels, leaving people in limbo and shunting the cost of failure onto local communities”.

At the same time, Reeves promised £280 million more a year will be spent on the new Border Security Command by the end of the spending-review period, which will attempt to tackle smuggling gangs.

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Refugee charities have welcomed the move, but have stated the system itself must change in order to safely house migrants while processing their claims.

“Moving from former commercial hotels to accommodation situated within communities would be welcome, but what the government really needs to end is the for-profit asylum accommodation model that has created billionaires,” Steve Smith, CEO of Care4Calais, said.

“Asylum accommodation should be provided based on the needs of people seeking asylum, not the profits of private owners and shareholders. Involving local authorities in the delivery of accommodation in their areas would be a first step in that direction.”

There were around 30,000 migrants living in more than 250 hotels across the UK as of the end of 2024, costing £4.2m per day, despite reports of “unsafe” and “substandard” living conditions.

A 2024 report found that women in asylum hotels in the UK said access to period products and nappies were inadequate, while their movement was “extremely restricted”, and many had dealt with sexual harassment while living in such accommodation.

Labour pledged to end the use of asylum hotels in its manifesto and has reportedly been looking at student accommodation blocks and former care homes as alternative sources of accommodation.

Enver Solomon, CEO of the Refugee Council, told Big Issue: “Asylum hotels have become a flashpoint for community tensions and cost billions to the taxpayer, so ending their use is good for refugees, the taxpayer and communities. The deadline of 2029 feels far away and we urge government to make it happen before then.”

Solomon added that the people arriving in Britain “in search of safety” should be “housed within our communities, not isolated in remote hotels”.

“Not only is this far cheaper but it also means that people can actually integrate into British life, contribute, and play their part in our country. This is positive for them but also for local communities. Government must urgently reform the asylum accommodation system to enable councils to deliver these vital services,” he said.

Asli Tatliadim, head of campaigns at Refugee Action, added that hotels are “wholly inappropriate to be used as accommodation”.

“They are part of an asylum system that hands eye-watering amounts of money to private firms while people are forced to live in unhealthy conditions and they are exposed to racist violence,” Tatliadim continued.   

“This money should be used to support councils to build and buy tens of thousands more homes to house any person in their community in need of a roof over their head, whatever their immigration status.”

Leila Zadeh, executive director at Rainbow Migration, which supports LGBTQIA+ people going through the asylum and immigration system, explained that in ending the use of “retraumatising and dangerous” asylum hotels, government should provide “safe housing in communities where LGBTQI+ people can be free to live openly, rebuild their lives, and access the support they need”.

“In addition, increasing spending on border security will drive people to take even more dangerous routes to reach the UK in search of sanctuary and to reunite with loved ones,” Zadeh added. “Rather than putting even more lives at risk, the government should invest in safe routes to the UK, close immigration detention centres and allow people to work while they wait for decisions on their asylum claims.

“Everyone fleeing persecution deserves a fair hearing and safety. It’s time to move away from policies that punish people and towards a compassionate and kind asylum system.”

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