The Home Office is poised to announce the closure of 11 asylum hotels this week, a significant step in the government’s commitment to eliminate the use of hotels for housing asylum seekers by the end of the current parliamentary term. This move comes amidst ongoing protests and growing criticism surrounding the accommodation of asylum seekers in hotels, which have been labelled by detractors as inadequate and luxurious.
Controversial Accommodation Practices
The housing of asylum seekers in hotels has sparked considerable debate since it became prevalent during the COVID-19 pandemic. Currently, nearly 200 hotels across the UK are accommodating around 30,000 asylum seekers, while over 70,000 individuals are housed in alternative settings, including shared housing and military barracks. The situation has given rise to protests, some of which have escalated to violence, such as the incident in Rotherham in August 2024 where demonstrators attempted to set fire to a hotel.
Critics, including refugee NGOs, argue that hotels are unsuitable for long-term residency, with a parliamentary investigation revealing that billions have been wasted on what has been described as a “failed, chaotic and expensive system.” For instance, the Red Cross reported that it had to utilise £220,000 from its disaster fund to provide clothing for asylum seekers in hotels, many of whom faced health issues such as scabies.
Future of Asylum Accommodation
In a related development, the Home Office is set to hold a private “industry day” this week for current and prospective accommodation providers. Details about the event, including its timing and location, will be disclosed at the last minute, with attendees required to sign non-disclosure agreements. This meeting concerns the re-tendering of asylum contracts effective from September 2029 to August 2036, with an option to extend to August 2039. The new contract, termed Future Asylum Contracts Accommodation, is valued at approximately £10 billion and aims to significantly reduce reliance on hotel accommodations.
However, insiders from the Home Office have expressed concerns that increasing the number of contractors could lead to inefficiencies and potentially escalate costs for taxpayers.
Funding Controversies
The Home Office has also faced scrutiny over its funding strategies. A portion of its overseas aid budget is being utilised to cover asylum accommodation costs, a practice known as “in donor refugee costs.” This expenditure saw a decrease from £2.8 billion in 2024 to £2.4 billion in 2025. Gideon Rabinowitz, Director of Policy and Advocacy at Bond, an NGO network focused on international development, has condemned the allocation of aid funds for domestic asylum seekers, arguing that financial support should come from dedicated Home Office budgets. He highlighted the adverse effects on global humanitarian projects, noting that critical programmes, such as education in Syria and healthcare in Africa, have faced closures due to budgetary cuts.
A spokesperson for the Home Office defended the government’s approach, stating, “This government is removing the incentives drawing illegal migrants to Britain and ramping up removals of those with no right to be here. That is why we are
