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The Fashion Central
The Fashion Central
Jane Miller

Eye-Watering Hotel Costs for Asylum Seekers Spark Radical New Government Plan

Photo by REUTERS

Shocking new figures have revealed that housing just one asylum seeker in a hotel costs the taxpayer more than £54,000 a year. The Home Office is now under intense scrutiny for racking up what’s being called “cripplingly expensive” bills amid a continuing rise in small boat crossings.

The Chartered Institute of Housing (CIH) has stepped in with a proposal that’s already turning heads – and ruffling feathers. They’re urging the government to give councils one-off grants to buy homes for migrants, arguing that it could save serious cash in the long run. According to their numbers, putting three people in a standard three-bed house could slash costs by over £150,000 a year compared to keeping them in hotels, reported the Express.

But the idea isn’t without controversy. Britain’s housing crisis is already leaving families priced out and stuck on waiting lists, and some fear this plan could make things even worse. The Local Government Association has warned that demand is already outstripping supply, and this move could drive prices up even more.

Tory MP Neil O’Brien didn’t hold back, pointing the finger at Labour leader Keir Starmer and saying illegal crossings have surged under his watch. He said: “A lot of British people will feel it is unfair that people who have just arrived should get housed… while people who have worked and paid in for a long time lose out.”

Lee Anderson from Reform UK echoed the sentiment, calling the proposal “a slap to the face” of young Brits trying to get on the housing ladder. His solution? Detain and deport illegal arrivals, cut the need for asylum accommodation, and ditch the pricey hotel stays altogether.

Despite the backlash, the CIH is adamant the government missed a trick by not acting sooner. They claim that if the plan to buy homes had kicked off in 2023, each property would’ve already paid back its initial cost and started saving the taxpayer big money. Even procuring just 2,000 homes could’ve trimmed £300 million off this year’s hotel bill.

As it stands, nearly 36,000 asylum seekers are still being housed in hotels, down from 48,000 last summer. At £145 per night per person, that adds up very quickly. Compare that with £14 a night in more permanent housing like flats or bedsits, and the difference is eye-watering.

John Perry from the CIH insists the plan’s not just about saving money: once the asylum backlog clears, these homes could help homeless families instead. Even Starmer says he wants to get the hotel bill down fast – though he’s staying vague on the details for now.

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