UK Treasury Admits Asylum Seeker Hotel Use Will Continue for Years Despite Prior Promises to End It, Citing Rising Costs and Housing Pressures

A Treasury document has revealed that the UK government anticipates continuing the use of hotels and temporary accommodations for asylum seekers for years, despite previous pledges to end this practice. The review, conducted by Chancellor Rachel Reeves' Office for Value for Money, highlights the Home Office's expenditure of £2.3 billion on hotels for asylum support in 2022-23. Factors such as housing supply pressures and global instability are cited as reasons for the ongoing demand. The document also points to a report by the Institute for Public Policy Research (IPPR), noting a 141% increase in per asylum seeker costs, rising from £17,000 in 2019-20 to £41,000 in 2023-24. Concerns have been raised about private sector suppliers making record profits, with accusations of profiteering. A government source, speaking to The Times, accused firms of exploiting the small boats crisis. The government is considering long-term arrangements to manage spending and performance more effectively. Downing Street has also not ruled out sending failed asylum seekers to overseas 'return hubs' in the Balkans.