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Labour Government Struggles to Cut £2.2bn Foreign Aid on Asylum Hotels

Diverting aid bound for overseas development to UK hotels has drawn criticism from campaigners over its impact on global poverty reduction.

Overview

  • The Home Office has budgeted £2.2bn of overseas development assistance for asylum seeker accommodation this financial year, only slightly less than last year’s £2.3bn.
  • Some 32,345 asylum seekers were housed in hotels as of the end of March, a 15% decrease from December but still accounting for three-quarters of overall accommodation costs.
  • National Audit Office data projects that asylum accommodation contracts will cost £15.3bn over 10 years, far exceeding the initial £4.5bn forecast.
  • The government aims to end the use of hotels by 2026 with plans to save £4bn for taxpayers but has yet to announce firm exit dates for the remaining sites.
  • A petition to halt financial support for asylum seekers has surpassed 321,000 signatures, fueling public and political pressure on the Home Office.