Asylum hotel costs rise over a third despite Labour's pledge to close them
The average nightly cost of housing asylum seekers in hotels has jumped to £199, a 37% increase, even as the number of people in such hotels has fallen sharply.
Figures released by the Home Office reveal that the average cost of hotel accommodation for asylum seekers has climbed to £199 per night, a 37% rise from the earlier £144.98 rate. Home Office Minister Anna Turley explained that the increase stems from the gradual shutdown of asylum hotels, which results in the department paying for unoccupied rooms. Despite the higher per-person cost, the total number of asylum seekers housed in hotels fell dramatically, from 36,273 at the end of September last year to 16,021 at the end of June, and the number of hotels in use dropped from 200 to 160.
Alternative dispersal accommodation, such as houses in multiple occupation, costs roughly £25 per person per night. Labour leader Andy Burnham reiterated the party’s commitment to end the use of asylum hotels by the end of one outlet Parliament, while the government claims the closures will save taxpayers over £1 billion. Regional mayors are being given powers to apply an overnight visitor levy to private stays, though taxpayer-funded asylum accommodation will be exempt.
Why it matters
Rising hotel costs strain public finances while the government promises to end the practice, highlighting a policy-implementation gap.
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