Politics

Government Plan to Remove Asylum Seekers from Costly Hotels Could Shake Up the System

Published on June 13, 2025

The UK government is in talks with over 100 councils about moving asylum seekers out of expensive hotels and into unused tower blocks and old student digs. The aim? Cut costs and make better use of empty buildings dotted across the country.

Home Office Minister Dame Angela Eagle shared this fresh approach during a recent session with MPs, explaining the government is gearing up to use break clauses in major accommodation contracts due next year to test out new options. Instead of keeping people in hotels while they wait on asylum decisions – a practice that’s been hammering the public purse – they could be relocated to unused buildings turned into temporary living spaces.

Dame Angela suggested these buildings might one day serve the homeless or offer other local services, but for now, they’d help take the pressure off hotels. She told the Home Affairs Committee that discussions with councils are focusing on “medium sized” facilities – not sprawling army camps or out-of-the-way holiday parks, but something more local and manageable.

Think empty tower blocks, former teacher training colleges, or abandoned student halls. Buildings that aren’t doing much right now but could be brought back to life to house asylum seekers in a more community-friendly and cost-effective way.

According to the Guardian, “The idea is you would move from hotels for that kind of thing rather than old military bases or Pontins holiday parks,” she said, hinting at a less controversial and more practical solution that might sit better with both local authorities and the public.

So far, the Home Office has received 198 proposals from councils keen to explore the idea. Officials are now sifting through the lot to figure out what’s actually feasible. It’s all part of what the minister described as a new, more cooperative spirit between the government and local councils.

“My instinct is trying to be much more cooperative with local authorities, trying to have a quid pro quo,” Dame Angela said, floating the idea that if these spaces are revamped to house asylum seekers, they could later serve homeless locals too.

She also mentioned that the break clauses in current contracts offer a rare chance to move away from the hotel-based system altogether. If the pilot schemes work out, the government could commit more seriously to this new model.

This rethink comes as the National Audit Office revealed the true cost of asylum accommodation has ballooned. Turns out, it’s more than triple what was originally expected. Hotels alone made up 76% of the projected £1.7 billion cost for 2024–25 – a staggering £1.3 billion.

Simon Ridley, the Home Office’s Second Permanent Secretary, told MPs that they’ve managed to shave a fair chunk off those figures over the past year. He said they’ve been able to bring down the per-person, per-night cost significantly and are looking at saving around £500 million this financial year.

If the government can pull this off, we might finally see a shift from crisis-driven hotel stays to something more sustainable. It’s still early days, but with hundreds of councils interested and millions on the line, this could be one of the most practical changes the asylum system has seen in years.

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