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UK Refugee Benefits Spending Surges, Prompting Calls for Policy Overhaul

Universal Credit payments to refugee households exceeded £1.1 billion in 2024, as record asylum approvals and small boat crossings intensify political and fiscal pressures.

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Overview

  • Universal Credit spending on refugee households rose by 33% in 2024, reaching £1.1 billion, driven by record asylum approvals and a backlog clearance effort.
  • More than 110,000 asylum applications were granted in 2023–24, marking the highest approval levels in nearly 40 years.
  • Small boat crossings in 2025 have surpassed 11,000, up over 40% from the same period in 2024, fueling scrutiny of border control policies.
  • The government is preparing a migration white paper and reviewing ECHR Article 8 to address deportation challenges and streamline immigration rules.
  • Universal Credit spending is projected to rise to £75.8 billion in 2025–26 and could reach £89 billion by 2030, highlighting long-term fiscal challenges.