Asylum Seekers Face £10,000 Fee Before Permanent Settlement in the UK

Olawale Olalekan
4 Min Read

The government of the United Kingdom (UK) has unveiled a proposal that will require adult asylum seekers to pay a £10,000 fee toward their state-funded living and accommodation costs before they can apply for permanent settlement.  

​This new fee for asylum seekers is part of the new Immigration and Asylum Bill, introduced to Parliament by UK Home Secretary Shabana Mahmood. 

The legislation aims to crack down on the country’s ballooning £4 billion annual asylum support budget and address escalating voter concerns surrounding illegal migration.  

​Under the proposed legal framework, refugees who have been granted the right to stay in the UK must settle a flat-rate charge—estimated at around £10,000 ($13,000)—to become eligible for Indefinite Leave to Remain (ILR), otherwise known as permanent settlement.  

Asylum seekers have not typically been expected to pay to seek settlement, and it is not a global norm.

​The Home Office outlined several parameters for how the recovery process will work:

​Means-Tested System: The fee will only apply to adults who meet a specific income threshold once they enter the workforce. Children are entirely exempt from the charge.  

​Flexible Payment Pathways: Repayments can be processed via monthly installments or via controlled deductions from state benefits.  

​Anti-Destitution Safeguards: The government promises to implement strict protections to ensure that no individual is pushed into extreme poverty or destitution by the payment demands.  

​Restrictions on Leaving: Any migrant who chooses to leave the UK must settle their outstanding balance before they will be permitted to return.  

Mahmood said asylum seekers in the UK have become a financial burden on the taxpayer.

“The cost of asylum accommodation on the British taxpayer is too high,” Mahmood said.

“We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so.

“Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.”

The new costs will also apply to previous asylum seekers who leave the UK and wish to return.

The Home Office estimates that the average cost per person per night of accommodating asylum seekers would be £23.25 in dispersal accommodation and £144 in hotels, while subsistence payments range from £9.95 to £49.18 per person per week.

According to the UK government, a quarter of 16-to 64-year-olds granted asylum status between 2015 and 2023 were in employment within the same calendar year they were granted status, with that number rising to 50 percent two years after refugee status was granted.

Of those who were in employment eight years after the grant, 37 percent were in full-time work with median earnings of £23,000, with 40 percent earning more than minimum wage.

The Home Office said the reforms will ensure asylum seekers take responsibility for the financial impact of their presence in the country.

This comes after the UK announced new asylum routes for seekers across the world. 

​Also announced by Mahmood, the new asylum routes for seekers are inspired by Canada-inspired sponsorship pathways while simultaneously tightening deportation laws for illegal arrivals. 

The dual-strategy aims to curb dangerous English Channel crossings and restore public trust in the UK border system.  

​The centerpiece of the new strategy shifts the burden of refugee integration from state-funded infrastructure to civil society, academic institutions, and private businesses.

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Olalekan Olawale is a digital journalist (BA English, University of Ilorin) who covers education, immigration & foreign affairs, climate, technology and politics with audience-focused storytelling.