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People granted refugee protection in the United Kingdom will be expected to reimburse about £10,000 for accommodation and financial assistance they received once they begin earning enough income, under measures set to be introduced in the government’s new Immigration and Asylum Bill.
The legislation, dueUK to be presented to Parliament on Tuesday, will require eligible refugees with the right to work to repay the fixed amount through instalments.
Settling the debt will become a condition for obtaining permanent residency.
Home Secretary Shabana Mahmood said the proposal reflects the principle that while state assistance is available to those in need, beneficiaries should contribute when they are financially able.
The government has not yet confirmed the income level that will trigger repayments.
However, ministers said future Home Secretaries will have the authority to revise both the repayment amount and earnings threshold to ensure the policy remains fair to taxpayers without pushing individuals into financial hardship.
The repayment requirement will also extend to unsuccessful asylum applicants whose earnings exceed the government’s designated limit.
According to the Home Office, Britain spent around £4 billion supporting asylum seekers during the past year.
Housing costs average £23.25 per person each night in publicly owned accommodation and £144 in hotels, while weekly subsistence payments range between £9.95 and £49.18, depending on individual circumstances.
The proposal has drawn criticism from refugee advocacy groups.
The Refugee Council described the policy as an additional financial burden on people rebuilding their lives after fleeing persecution.
Imran Hussain, the organisation’s Director of External Affairs, argued that asylum seekers are generally prohibited from working while their applications are being processed and only receive government assistance because they face severe financial need.
He warned that requiring repayments would place further pressure on vulnerable families.
Researchers at the University of Oxford’s Migration Observatory also questioned how much revenue the scheme would generate.
Director Dr. Madeleine Sumption noted that relatively few refugees reach income levels high enough to make significant repayments.
She pointed to 2023 data showing that only 13% of refugees who had received protection five years earlier earned at least £20,000 annually, while the remainder either had lower incomes or were not employed.
She said contributions would likely come from only a limited proportion of refugees unless the qualifying earnings threshold were set well below the minimum wage.
Home Office figures indicate that around one-quarter of refugees aged 16 to 64 secured employment during the same year they were granted asylum. The employment rate increased to half within two years.
Among those working eight years after receiving refugee status, 37% held full-time jobs with median annual earnings of approximately £23,000, while only 40% earned above the minimum wage.
Shadow Home Secretary Chris Philp welcomed the announcement, claiming the governing Labour Party had adopted a proposal previously put forward by the Conservatives after initially rejecting it.
Ministers say the Immigration and Asylum Bill is intended to create a stronger yet balanced asylum framework while reducing incentives for irregular migration.
Some elements of the legislation, however, are expected to face opposition from Labour MPs who believe several provisions are too restrictive.
Separately, the Home Office recently announced plans to expand the use of former military barracks to accommodate asylum seekers following the closure of 20 additional hotels in England.
The bill will also introduce capped safe and legal refugee pathways, allowing universities, community organisations and businesses to sponsor eligible applicants in an effort to lower public expenditure.
By Magdalene Agyeiwaa Sarpong