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Government struggles to slash foreign aid spent on asylum hotels | UK News

The Owner Press by The Owner Press
June 7, 2025
in Business News
Reading Time: 2 mins read
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The federal government is struggling to chop the billions of kilos of overseas support partly used to deal with asylum seekers in accommodations, in keeping with new figures.

The £2.2bn Home Office estimate to spend £2.2bn of abroad growth help (ODA) on this monetary 12 months is simply barely lower than the £2.3bn spent in 2024/25.

The overwhelming majority is used for the lodging for asylum seekers who’ve arrived within the UK, with current figures displaying greater than 32,000 have been being housed in accommodations on the finish of March.

Labour has pledged “to finish the usage of asylum accommodations” and the federal government says it has diminished the general asylum help prices by half a billion kilos, together with £200m in ODA financial savings, which had been handed again to the Treasury.

Prime Minister Sir Keir Starmer has stated he’ll minimize the general ODA from its present stage of 0.5% of gross nationwide revenue (GNI) to 0.3% in 2027.

Foreign aid is meant to be spent on offering humanitarian and growth help in different nations, however the UK is allowed to rely refugee-hosting prices as ODA beneath internationally agreed guidelines.

Labour MP Sarah Champion beforehand stated a “scandalously great amount” of ODA has been diverted to the House Workplace and has referred to as for a cap on how a lot could be spent supporting asylum seekers and refugees within the UK.

Asylum seekers and their households are housed in short-term lodging if they’re ready for the end result of a declare or an enchantment and have been assessed as not having the ability to help themselves independently.

They’re housed in accommodations if there may be not sufficient house in lodging supplied by native authorities or different organisations.

A House Workplace spokesperson stated: “We inherited an asylum system beneath distinctive stress, and are urgently taking motion to revive order, and scale back prices.

“It will in the end scale back the quantity of Official Improvement Help spent to help asylum seekers and refugees within the UK.

“We’re instantly rushing up selections and rising returns in order that we are able to finish the usage of accommodations and save the taxpayer £4bn by 2026.”



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