Thu, 06 Nov 2025

Thu, 06 Nov 2025 Government recovers £74m from asylum hotel firms

The amount recouped remains a small percentage of the overall cost of asylum accommodation.

* The government has recovered £74m in excessive profits made by companies running asylum accommodation.
* This amount represents a small percentage of the overall cost of asylum accommodation, which was £2.1bn in 2024/25.
* Accommodation providers had previously agreed to return some profits to the government under the terms of their contracts.
* The Home Office has promised to end the use of asylum hotels before the next general election and is exploring alternative forms of accommodation.
* The government has already saved £700m in hotel costs and plans to close all asylum hotels by the end of this parliament.
* Conservative Shadow Home Secretary Chris Philp claims that the Labour government is accommodating more illegal immigrants in hotels than at the election, and only a Conservative government can effectively control borders.
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