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UK will end use of asylum hotels by 2029, Reeves says | UK will end use of asylum hotels by 2029, Reeves says |
(about 3 hours later) | |
The government has set out plans to end the use of hotels to hold asylum seekers by 2029, a move Rachel Reeves says will save £1bn a year. | The government has set out plans to end the use of hotels to hold asylum seekers by 2029, a move Rachel Reeves says will save £1bn a year. |
Unveiling her Spending Review on Wednesday, the chancellor pledged £200m to "cut the asylum backlog, hear more appeal cases and return people who have no right to be here". | Unveiling her Spending Review on Wednesday, the chancellor pledged £200m to "cut the asylum backlog, hear more appeal cases and return people who have no right to be here". |
Ministers say hotels will be phased out by cutting small boat crossings and building new government-owned accommodation for asylum seekers. | Ministers say hotels will be phased out by cutting small boat crossings and building new government-owned accommodation for asylum seekers. |
The announcement comes after the National Audit Office (NAO) predicted asylum housing costs will hit £15.3bn over the next decade - triple the amount budgeted by the Home Office. | The announcement comes after the National Audit Office (NAO) predicted asylum housing costs will hit £15.3bn over the next decade - triple the amount budgeted by the Home Office. |
Conservative shadow home secretary Chris Philp claimed the plans are "built on an assumption that the hotels magically empty themselves". | Conservative shadow home secretary Chris Philp claimed the plans are "built on an assumption that the hotels magically empty themselves". |
"They still have no plan for where these people will go," he added. | "They still have no plan for where these people will go," he added. |
On Tuesday, Home Office minister Dame Angela Eagle told a committee of MPs the government were looking to buy tower blocks and former student accommodation to house migrants as an alternative to asylum hotels. | On Tuesday, Home Office minister Dame Angela Eagle told a committee of MPs the government were looking to buy tower blocks and former student accommodation to house migrants as an alternative to asylum hotels. |
Dame Angela Eagle said the government was exploring new ways to house asylum seekers ahead of break clauses in major accommodation contracts coming up next year. | Dame Angela Eagle said the government was exploring new ways to house asylum seekers ahead of break clauses in major accommodation contracts coming up next year. |
Labour promised in its manifesto to "end asylum hotels, saving the taxpayer billions of pounds" but did not give a date when this would be achieved. | Labour promised in its manifesto to "end asylum hotels, saving the taxpayer billions of pounds" but did not give a date when this would be achieved. |
On Tuesday, Reeves told MPs the government now expects to hit its goal "in this Parliament". | On Tuesday, Reeves told MPs the government now expects to hit its goal "in this Parliament". |
"Funding that I have provided today... will cut the asylum backlog, hear more appeal cases and return people who have no right to be here," she said. | "Funding that I have provided today... will cut the asylum backlog, hear more appeal cases and return people who have no right to be here," she said. |
An extra £150m will be spent to speed up planned reforms of the asylum system in 2026-27 and an additional £50 m in 2027-28, with the money to come from the £3.25bn Transformation Fund, aimed at modernising public services. | An extra £150m will be spent to speed up planned reforms of the asylum system in 2026-27 and an additional £50 m in 2027-28, with the money to come from the £3.25bn Transformation Fund, aimed at modernising public services. |
Government estimates the reforms will reduce asylum costs by at least £1bn per year by 2028–29, compared to 2024–25 prices. | Government estimates the reforms will reduce asylum costs by at least £1bn per year by 2028–29, compared to 2024–25 prices. |
Seven ways the Spending Review affects you | Seven ways the Spending Review affects you |
Winners and losers: Who got what in the review? | |
What has the chancellor has announced? The key points | What has the chancellor has announced? The key points |
Watch: Where the money is being spent | Watch: Where the money is being spent |
According to the Home Office, hotels are "contingency accommodation" and only meant to be used for asylum seekers when other housing cannot be sourced. | According to the Home Office, hotels are "contingency accommodation" and only meant to be used for asylum seekers when other housing cannot be sourced. |
But since 2020 there has been a surge in their use - fuelled by asylum backlogs, housing shortages, and rising rental prices, according to Oxford University's Migration Observatory. | But since 2020 there has been a surge in their use - fuelled by asylum backlogs, housing shortages, and rising rental prices, according to Oxford University's Migration Observatory. |
The government spent £1.3bn this year to house asylum seekers in hotels, according to the NAO - covering 76% of all accommodation costs. | The government spent £1.3bn this year to house asylum seekers in hotels, according to the NAO - covering 76% of all accommodation costs. |
The most recent Home Office figures show there are about 32,000 asylum seekers in hotels in the UK. That is also 6% lower than the 34,530 at the same point a year earlier. | The most recent Home Office figures show there are about 32,000 asylum seekers in hotels in the UK. That is also 6% lower than the 34,530 at the same point a year earlier. |
Responding to the announcement, home affairs committee chairwoman Dame Karen Bradley said the cost of asylum hotels has risen to a "staggering extent". | Responding to the announcement, home affairs committee chairwoman Dame Karen Bradley said the cost of asylum hotels has risen to a "staggering extent". |
Dame Karen, the Conservative MP for Staffordshire Moorlands, said: "If hotels disappear there will still need to be stock of short-term accommodation to deal with unpredictable levels of irregular migration. | Dame Karen, the Conservative MP for Staffordshire Moorlands, said: "If hotels disappear there will still need to be stock of short-term accommodation to deal with unpredictable levels of irregular migration. |
"Targets on their own are not enough, they need to be delivered - and for that we need to have workable solutions". | "Targets on their own are not enough, they need to be delivered - and for that we need to have workable solutions". |
Dame Karen warned that without savings, broader goals to improve policing, cut immigration and strengthen counter-terrorism will be impacted. | Dame Karen warned that without savings, broader goals to improve policing, cut immigration and strengthen counter-terrorism will be impacted. |
In her spending review, the chancellor also announced up tp £280m per year extra for the Border Security Command, which leads on the UK's strategy to crack down on people smuggling and small boat crossings. This follows an initial £150m to establish the unit last year. | In her spending review, the chancellor also announced up tp £280m per year extra for the Border Security Command, which leads on the UK's strategy to crack down on people smuggling and small boat crossings. This follows an initial £150m to establish the unit last year. |
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