The Immigration and Asylum Bill gives the Home Office new powers to recover accommodation and support costs from asylum seekers who have sufficient funds to pay. Eligible adults repay a flat-rate charge, expected to total around £10,000, in monthly instalments above a set threshold, before they can be considered for settled status.
TL;DR · LAST REVIEWED Updated 2 July 2026
- New Home Office powers recover asylum accommodation costs from those who can afford to pay.
- Flat-rate charge expected to total around £10,000, paid monthly above a set threshold.
- Full repayment required before eligibility for settled status.
- Government spent £4 billion on asylum accommodation and support last year.
KEY FACTS
- The Immigration and Asylum Bill was introduced to Parliament on 30 June 2026.
- The Home Office estimates the total repayment at around £10,000, though the Home Secretary can adjust the figure.
- Payment is a flat-rate charge, deducted monthly above a set income threshold, similar in structure to a student loan repayment.
- The primary payment route is direct payment to the Home Office; using the tax and benefits systems is also being explored.
- The government spent £4 billion on asylum accommodation and support in the last year.
- Average nightly accommodation cost is £23.25 in dispersal accommodation and £144 in hotels; subsistence payments range from £9.95 to £49.18 per person per week.
- Anyone liable for the charge who leaves the UK will need to pay the full amount before returning at a future date.
The Immigration and Asylum Bill, introduced to Parliament on 30 June 2026, sets out new Home Office powers to recover the cost of accommodation and support from asylum seekers who have access to sufficient funds to pay. The measure applies to adults who have received asylum support such as subsistence payments or housing.
How the repayment works
The charge is structured as a flat-rate contribution rather than a bill for the exact cost incurred. Eligible adults repay an amount each month once their income rises above a set threshold, a structure the Home Office has compared to student loan repayments. The government has not yet confirmed the exact threshold. The primary payment mechanism is expected to be direct payment to the Home Office, with officials also exploring routes through the tax and benefits systems.
The Home Office estimates the total contribution at around £10,000 per person, though the Home Secretary retains the power to adjust this figure. Anyone liable for the charge who leaves the UK before paying it off will be required to clear the balance in full before being permitted to return.
Why the figure is set where it is
The government states it spent £4 billion on asylum accommodation and support in the most recent year. Published Home Office figures put average costs at £23.25 per person per night in dispersal accommodation and £144 per night in hotel accommodation, with subsistence payments ranging from £9.95 to £49.18 per person per week depending on circumstances. The government says it has already reduced these costs by close to £1 billion since taking office and has closed 31 asylum hotels since April, moving some asylum seekers into alternative sites including former military accommodation.
Link to settlement
Under the Bill, clearing the repayment is a condition of being considered for settled status (Indefinite Leave to Remain). Migrants need settled status to live, work and study in the UK on a permanent basis, so the repayment requirement effectively becomes part of the pathway to settlement rather than a standalone charge.
What happens next
The Bill still needs to pass through Parliament before these powers take effect, and the government has not yet published the specific income threshold or the full mechanics of how tax and benefits deductions might work in practice. This page will be updated as the Bill progresses and as further detail is published.
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DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
Who has to repay asylum accommodation costs under the new Bill?
Adults who have received asylum support such as accommodation or subsistence payments, and who have access to sufficient funds to pay, under new Home Office powers set out in the Immigration and Asylum Bill.
How much will asylum seekers have to repay?
The Home Office estimate is around £10,000 in total, paid as a flat-rate monthly charge above a set income threshold. The Home Secretary can adjust this figure.
Does the repayment affect settled status?
Yes. Under the plans, the full amount must be repaid before an individual can be considered for settled status (Indefinite Leave to Remain).
When does this take effect?
The Immigration and Asylum Bill was introduced to Parliament on 30 June 2026 and needs to complete the parliamentary process before the powers take effect.
SOURCES
- GOV.UK: Asylum seekers will pay towards costs of accommodation – accessed 2 July 2026
