On 30 June 2026, the government introduced the Immigration and Asylum Bill, a Home Office measure that would let ministers recover part of the cost of asylum accommodation and subsistence from adults who later have sufficient funds. The accompanying Home Office press release presents the proposal as a flat-rate contribution rather than a case-by-case recovery of actual expenditure. (gov.uk) The policy shift is important because support would still be provided when needed, but liability could continue after a person’s asylum case and once income becomes available. In practice, that moves asylum support closer to a deferred-charge model for some recipients. (gov.uk)
The impact assessment says the power would apply to support provided under sections 4 and 95 of the Immigration and Asylum Act 1999, which cover accommodation and subsistence. It also says children would be exempt and that further exemptions, including for modern slavery cases, are intended to be set in secondary legislation. (assets.publishing.service.gov.uk) That sequencing leaves a substantial part of the scheme unresolved at introduction. The flat rate, the income threshold for repayment and the detailed exemption rules are all still to be developed, meaning Parliament is being asked to approve the power before the full charging model is published. (assets.publishing.service.gov.uk)
The Home Office says repayment would be monthly and only above a set threshold, with the threshold designed so that recovery does not push a person into destitution. The press release also says the Home Secretary would be able to change both the charge and the threshold over time. (gov.uk) On enforcement, the department expects direct payment to the Home Office to be the main route. The impact assessment adds that ministers are exploring recovery through the tax system and says deductions from Universal Credit could also be used. (gov.uk)
The proposal also carries consequences beyond the repayment period itself. The Home Office says a migrant would need to clear the full amount before becoming eligible for settlement, and that someone who leaves the UK would still need to address the debt if they later wished to return. (gov.uk) For immigration advisers and local support organisations, that makes the measure more than a budget line. If enacted as drafted, repayment status could become relevant to settlement planning, compliance advice and future re-entry applications. (gov.uk)
The fiscal argument is central to the government’s case. The Home Office says asylum support cost about £4 billion in 2024/25, with average accommodation costs of £23.25 per person per night in dispersal accommodation and £144 in hotels. Weekly subsistence rates are put at between £9.95 and £49.18 per person. (gov.uk) The same press release says ministers have reduced asylum costs by nearly £1 billion since taking office and have closed 31 asylum hotels since April 2026, moving hundreds of people into other basic accommodation, including ex-military sites. (gov.uk)
According to the Home Office, the working assumption is that eligible adults would contribute around £10,000 in total, although that figure would still represent only part of the overall cost of their support. The impact assessment adds that the measure would apply prospectively, so liability would attach to people who apply for asylum after the commencement date rather than to all past recipients of support. (gov.uk) That prospective approach narrows the immediate reach of the policy, but it does not answer the main operational questions. Those still sit in later regulations, including commencement timing, collection design and the balance between direct billing, tax recovery and benefit deductions. (assets.publishing.service.gov.uk)
The Home Office is also using labour market data to justify the measure. Its press release says 25 per cent of people aged 16 to 64 granted refugee status between 2015 and 2023 were in employment within the same calendar year as the grant, rising to 50 per cent two years later. Among those in work eight years after the grant, 37 per cent were in full-time employment with median earnings of £23,000, and 40 per cent earned above minimum wage. (gov.uk) In parliamentary terms, the bill was presented in the House of Commons on 30 June 2026 as Bill 105 for the 2026-27 session and given its first reading the same day, with second reading set for 1 July 2026. The next scrutiny points are the bill text, the explanatory notes and the secondary legislation that will decide who pays, how much and by which route. (bills.parliament.uk)