Support our Nation today - please donate here
News

Home Office plans to spend £2.2bn of foreign aid on asylum support this year

07 Jun 2025 3 minute read
Home Secretary Yvette Cooper. Photo Lucy North/PA Wire

The Home Office plans to spend about £2.2 billion of foreign aid to support asylum seekers this financial year, according to new figures.

The amount of overseas development assistance (ODA) budgeted by the Home Office – which is largely used to cover accommodation costs such as hotels for asylum seekers – is slightly less than the £2.3 billion it spent in 2024/25.

International rules allow countries to count first-year costs of supporting refugees as overseas development assistance (ODA).

The figures, first reported by the BBC, were published in recent days on the Home Office website.

Action

The Home Office said it is “urgently taking action to restore order and reduce costs” which will cut the amount spent to support asylum seekers and refugees in the UK.

It also said it was expected to have saved £500 million in asylum support costs in the last financial year, and that this had saved £200 million in ODA which had been passed back to the Treasury.

A total of 32,345 asylum seekers were being housed temporarily in UK hotels at the end of March this year.

This figure is down 15% from the end of December, when the total was 38,079, and 6% lower than the 34,530 at the same point a year earlier.

Asylum seekers and their families are housed in temporary accommodation if they are waiting for the outcome of a claim or an appeal and have been assessed as not being able to support themselves independently.

They are housed in hotels if there is not enough space in accommodation provided by local authorities or other organisations.

Committed

Labour has previously said it is “committed to end the use of asylum hotels over time”, adding that under the previous Conservative government at one stage “more than 400 hotels were in use and almost £9 million per day was being spent”.

Jo White, chairwoman of the Red Wall group of Labour MPs, told BBC Radio 4’s Today programme on Saturday: “We need to be looking at things like ECHR article eight. I don’t think anything’s off the table … including looking at new options such as processing abroad.

“So, we have to be open to see how we can move move that backlog as quickly as possible. I’m getting impatient.

“I know my colleagues in parliament are getting impatient and we’re pressing the Government as hard as we can on this.”

A Home Office spokesperson said: “We inherited an asylum system under exceptional pressure and are urgently taking action to restore order and reduce costs.

“This will ultimately reduce the amount of official development assistance spent to support asylum seekers and refugees in the UK.

“We are immediately speeding up decisions and increasing returns so that we can end the use of hotels and save the taxpayer £4 billion by 2026.

“The Rwanda scheme also wasted £700 million to remove just four volunteers – instead, we have surged removals to nearly 30,000 since the election, are giving law enforcement new counter-terror style powers, and increasing intelligence sharing through our Border Security Command to tackle the heart of the issue, vile people-smuggling gangs.”


Support our Nation today

For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.

Subscribe
Notify of
guest

10 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Alain
Alain
1 day ago

We didn’t need hotels in 2016. Let’s rejoin the Dublin deterrent and abolish small boat crossings.

Adrian
Adrian
1 day ago
Reply to  Alain

…or just find some politicians who have a spine.

Tucker
Tucker
1 day ago
Reply to  Adrian

Who? Your Russian asset Nige? Hahahahahaha

Alain
Alain
1 day ago
Reply to  Adrian

You mean the spine to rejoin, or become a rogue state?

Jeff
Jeff
1 day ago

Vote leave, you get these bills.
Brexit still winning….

Adrian
Adrian
1 day ago
Reply to  Jeff

Brexit, amongst other things, revealed the gutlessness of our political class. We have control of our borders: just nobody with the spine to use it.

hdavies15
hdavies15
1 day ago
Reply to  Adrian

Correct. It is and was the collective inability or disinclination of our so called “leaders” that made an even bigger mess of the post referendum period. Botchit suits better than Brexit. Politicians at ease with bitching, slanging matches and rhetoric yet none of them with any capacity for the hard work and detailed scrutiny that might have yielded a far more workable, even grown up set of agreements with EU. Of course it may be the case that they were all too effin’ lazy as well.

Steve D.
Steve D.
1 day ago

Under investment and massive cuts in the Home Office, along with closing virtually all the safe routes into the UK, by the Tories, is why we are in this predicament. In all fairness to Labour it has increased the budget and workforce to meet this challenge. However, unless new safe routes are introduced into the UK and there are places created where people can be processed safely, the issue regarding small boats and people smugglers will continue and probably get worse. Desperate people would not use people smugglers and risk their lives if they knew they would be processed safely… Read more »

Y Cymro
Y Cymro
1 day ago

Love to know where all this money’s coming from? Welsh Secretary Jo Stevens said there was not enough money left in the pot for Wales HS2 consequential. Well apparently there is.

The Chancellor Rachel Reeves must have found some loose change down the back of one her many Chesterfield sofas to fund not only the £10 billion to connect Euston Station in London to the HS2, £15 billion for the “North” transport infrastructure, but now a further £2.2 billion on asylum support. And what about Wales, I hear you all cry? They say, what about it with indifference.

Last edited 1 day ago by Y Cymro
Garycymru
Garycymru
41 minutes ago

Lol. They definitely didn’t write that on the side of their bus!
Brexit is the gift that keeps giving.
Every empire comes to a natural end eventually, but Brexit has sealed the fate of the UK rather nicely.

Our Supporters

All information provided to Nation.Cymru will be handled sensitively and within the boundaries of the Data Protection Act 2018.