Home Secretary Shabana Mahmood is set to announce on Tuesday that asylum seekers will be required to pay approximately £10,000 to cover their state-funded living costs, or risk being denied settled status in the UK. The announcement comes ahead of Sir Keir Starmer's replacement by Andy Burnham as Prime Minister.
Details of the new rule
Under the new policy, migrants receiving asylum support will be expected to repay the cost of their living expenses once they are able to contribute. The Home Office confirmed that migrants must pay off the full amount before becoming eligible for settlement. Mahmood stated: "Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so."
Expert analysis on financial impact
Immigration experts have indicated that the amount of money raised will be relatively small. Madeleine Sumption, director of the University of Oxford's Migration Observatory, noted that less than 15% of refugees earn more than £20,000 five years after being granted asylum. She said: "The data suggests that unless thresholds were significantly below the minimum wage, a relatively small share of people granted asylum would earn enough to make contributions to the scheme." She added: "Overall, the impact of the scheme on public finances is likely to be relatively small, because it is a means-tested payment for a very low-income population."
Criticism from refugee support organisations
Imran Hussain, director of external affairs at the Refugee Council, criticised the policy as unfair and impractical: "Imposing what amounts to an extra tax on refugees, who the Home Office accepts have arrived here after fleeing persecution, torture and war, is unfair, impractical and makes it much harder for families to rebuild their lives and stand on their own feet." He highlighted that the Home Office itself bans asylum seekers from working while their claims are being assessed, making it difficult to repay. Zoe Dexter, housing and welfare manager at the Helen Bamber Foundation, called the proposal "simply more performative cruelty from the government," lacking detail or a credible plan to tackle chronic delays in the asylum system.
Potential unintended consequences
Sumption also warned of possible negative effects: "It is possible that the scheme could have some other impacts, such as discouraging asylum seekers from taking up accommodation if they can find other support, or discouraging them from working once they get refugee status because they face a higher effective tax rate."
