The Home Office is set to announce the closure of 11 asylum hotels as part of a wider plan to phase out the use of hotels for housing asylum seekers in the United Kingdom.
The use of hotels began during the COVID-19 pandemic as a temporary solution but has remained in place, sparking ongoing debate. Currently, nearly 200 hotels are still being used to accommodate about 30,000 asylum seekers, while more than 70,000 others live in alternative housing such as shared homes and former military sites.
The policy has faced criticism from different sides. Some local protests have taken place outside hotels, while humanitarian groups argue that hotels are not suitable for long-term living. In some cases, tensions have escalated, including a violent incident in Rotherham in 2024.
Organizations like the British Red Cross have also raised concerns about conditions, noting that they had to use emergency funds to support asylum seekers living in hotels.
The government says it is working to reduce reliance on hotels and cut costs. According to officials, the number of people housed in hotels has already dropped significantly, leading to savings of nearly £1 billion.
As part of the transition, the Home Office is planning new long-term accommodation contracts worth around £10 billion. These contracts aim to provide more basic and sustainable housing options for asylum seekers.
However, some industry insiders have warned that expanding the number of contractors could create inefficiencies and increase costs over time.
The policy has also drawn criticism over funding. Part of the UK’s overseas aid budget has been used to support asylum accommodation, a move that advocacy groups argue reduces funding available for global humanitarian programs.
The government maintains that the changes will help manage migration more effectively while reducing spending and improving the system.