This week, the Home Office is set to announce the closure of 11 hotels designated for housing asylum seekers, part of its commitment to eliminate all such facilities by the end of the current parliamentary session.

The practice of utilizing hotels for asylum accommodation has sparked considerable debate since it became prevalent during the early days of the Covid pandemic. Demonstrators opposing immigration have expressed their grievances outside these hotels, arguing that asylum seekers are experiencing an unmerited standard of living.

Government data indicates that nearly 200 hotels are currently hosting around 30,000 asylum seekers. In addition to these, more than 70,000 asylum seekers reside in various forms of accommodation, including shared housing and military barracks.

Some protests have escalated into violence, as seen in Rotherham in August 2024, where demonstrators attempted to set fire to a hotel housing asylum seekers. Humanitarian organizations have criticized the use of hotels as inadequate for long-term living arrangements, and a parliamentary inquiry revealed that the government has wasted billions on a “failed, chaotic, and costly system.” The Red Cross reported that it had to divert £220,000 from its disaster relief fund to provide clothing for asylum seekers in hotels, some of whom have suffered from scabies.

The Home Office is planning to hold a private gathering this week, referred to as an “industry day,” aimed at current and prospective providers of asylum accommodation. Details regarding the time and location of this event are being withheld until shortly before it occurs, and attendees are required to sign a non-disclosure agreement.

This meeting is associated with the re-tendering process for asylum contracts, which will run from September 1, 2029, to August 31, 2036, with an option for extension until August 31, 2039. The new contract, known as Future Asylum Contracts Accommodation, is estimated to be worth around £10 billion and seeks to reduce reliance on hotel accommodations. However, senior officials from the Home Office’s current accommodation providers have voiced concerns that the introduction of more contractors could lead to inefficiency and ultimately higher costs for taxpayers.

Part of the Home Office’s overseas aid budget is allocated to fund asylum accommodations, a practice termed “in donor refugee costs.” These expenditures decreased from £2.8 billion in 2024 to £2.4 billion in 2025.

Gideon Rabinowitz, the director of policy and advocacy at Bond, which represents UK NGOs in international development, criticized the government for using a portion of the aid budget for asylum seekers within the UK. He emphasized that while asylum seekers deserve support, funding should originate from the Home Office’s budget.

“In 2025, funding for communities impacted by conflict and crisis globally decreased by over £1 billion, even as 18% of the budget was diverted to cover asylum costs in the UK,” Rabinowitz stated. “Essential humanitarian initiatives, including educational programs in Syria and healthcare services across Africa, have already had to shut down, and with more drastic cuts looming this year and next, the most severe repercussions are still to come.”

A spokesperson for the Home Office remarked, “This government is working to eliminate the incentives that attract illegal migrants to Britain and is increasing the removal of individuals without the right to remain. This is why we are shutting down all asylum hotels and transitioning asylum seekers into basic accommodations, including repurposed military sites. The number of individuals in asylum hotels has decreased by almost 20% in the past year and by 45% since the peak under the previous administration, achieving nearly £1 billion in cost reductions.”