The government of the United Kingdom (UK) is intensifying its crackdown on immigration as the Home Office prepares to close 11 asylum hotels this week.
The decision by the UK government to close 11 asylum hotels marks a significant step in efforts to reduce reliance on what has been described as expensive hotel accommodation for asylum seekers.
This move also aligns with Labour’s broader pledge to end the use of all such facilities by the end of the current parliament, aiming to cut costs and address public concerns over migration policy.
Sources close to the plans indicate the closures are tied to ongoing re-tendering of asylum accommodation contracts and a shift toward more basic, cost-effective options, including former military sites and other dispersal housing
Latest government statistics indicate that there are around 200 hotels currently in use as of press time.
The hotels are said to be accommodating about 30,000 asylum seekers. More than 70,000 other asylum seekers live in other types of accommodation such as shared housing or military barracks.
According to reports, the Home Office is due to hold a private event this week, described as an “industry day” for potential future providers of asylum accommodation.
The department has not disclosed details of the time and venue and it is reported that those attending have to sign a non-disclosure agreement (NDA).
The meeting is understood to relate to the re-tendering of asylum contracts from 1 September 2029 until 31 August 2036, with a possible option to extend to 31 August 2039.
The new contract, known as Future Asylum Contracts Accommodation, has been valued at approximately £10bn and will enact the government’s aim of moving away from reliance on hotel accommodation.
Controversially, the Home Office uses part of the already reduced overseas aid budget to fund asylum accommodation in a practice known as “in donor refugee costs”.
These costs amounted to around £2.8bn in 2024 and £2.4bn in 2025.
The Home Office has been asked to comment on the claims but has not responded.
A Home Office spokesperson told The Guardian: “This government is removing the incentives drawing illegal migrants to Britain and ramping up removals of those with no right to be here. That is why we are closing every asylum hotel and moving asylum seekers into basic accommodation including ex-military sites.
“The population in asylum hotels has fallen by nearly 20 per cent in the last year and by 45 per cent since the peak under the previous government, cutting costs by nearly £1bn.”
This comes after the UK government officially began the implementation of new asylum rules, marking a shift in how refugees are processed and settled.
The new rule which took effect on March 2, 2026, fundamentally transforms refugee status from a permanent sanctuary into a temporary grant of leave.
Under these regulations, most adults and accompanying children granted asylum will now receive only 30 months of protection, after which their cases will be mandatorily reviewed to determine if their home countries are safe for return.
Previously, refugees were typically granted five years of protection followed by a path to permanent settlement.
The reforms prioritized “core protection,” which must be renewed multiple times.
