Asylum Accommodation

At the peak under the previous Government, there were 400 hotels in use across the country, at a cost of £9 million a day. Thousands of asylum seekers were left in limbo in those hotels as decision making collapsed. That was the chaos that this Government inherited a year ago, but we have taken action to restore order. We are cutting the overall cost of asylum accommodation, and we are committed to ending the use of these hotels entirely by the end of this Parliament.

People are rightly concerned by reports that the Home Office is buying hotels to house asylum seekers. That appears to be completely at odds with the Government’s manifesto pledge to end the use of hotels. Will the Home Secretary or her Minister confirm to the House whether those reports are true or not true? Will she reassure my constituents in Bridlington and The Wolds that there are no plans to house illegal migrants in facilities in our local area?

The Home Office is not buying hotels. As for the hon. Gentleman’s constituency, there are currently 61 service users housed in his area, which is less than 15% of the quota, and there are zero hotels.

The Government may not be buying hotels, but it is filling them up with asylum seekers. The number has gone up in the past year, not down, yet the Government say that they will reduce them to zero by the end of this Parliament. Will the Minister confirm whether the commitment to end the use of asylum hotels by the end of this Parliament is a guaranteed pledge on which we can judge their success or failure—yes or no?

By March this year, 15% fewer people were in hotel accommodation than at the end of 2024. We are saving money on the chaos that we inherited from the Conservatives, and we have announced that we will end the use of hotels by the end of this Parliament.

Are private rented family homes in socially and economically deprived areas the right place for asylum seekers to be housed? Are community impacts of those placements being monitored, ready to inform policy if necessary?

I can assure my hon. Friend that we keep all these issues under close monitoring, and we are doing our best to ensure that individual areas take their fair share of the burden when it comes to looking after people in our asylum system. Just to reassure her, we have sped up asylum decision making. The system that we inherited was paralysed, and we are getting it going again so that we can deal with this issue as quickly as possible.

This Labour Government inherited a situation from the Conservatives where we were spending almost £9 million every single day on asylum hotels, including the Crewe Arms hotel in my constituency. Will the Minister set out what steps she is taking to bring down those costs, as well as speeding up decision making, so that we can reopen the Crewe Arms as a hotel?

We are as anxious as my hon. Friend to end the use of asylum hotels, but the backlogs we inherited from the Conservatives and the time it was taking—decision making collapsed by 70% in the last three months of that Government—have made it harder to empty hotels than we thought it would be at the beginning. However, we have sped up; there has been a 116% increase in initial asylum decisions. We are speeding up the system, we are getting people through the system, and we will close all asylum hotels by the end of this Parliament.

I call the shadow Home Secretary.

I gently remind the Minister that the number of immigrants in asylum hotels has gone up since the general election. I recently visited an asylum hotel and saw bikes from Deliveroo, Just Eat and Uber Eats in the hotel compound. Local eyewitnesses confirmed that the illegal immigrants in the hotel had been illegally working. That creates a pull factor, because people smugglers actively market illegal working opportunities. It also creates risk for women and girls, who might receive deliveries late at night from these undocumented illegal immigrants. Will the Minister at least commit now to preventing this illegal working from taking place from the hotels that she runs?

We have had a 50% increase in raids and arrests on illegal working since we came into government, so perhaps the shadow Home Secretary should have spent more time when he was in government enforcing the rules on illegal working. We are doing more, including extending the law on illegal working to the gig economy. That measure is in the Border Security, Asylum and Immigration Bill, which he voted against.

I call the Liberal Democrat spokesperson.

Enabling new refugees to prepare properly for life in the UK will be key to reducing the need for asylum accommodation. In my constituency we have seen the extension of the move-on period not only giving new refugees much-needed time to make those preparations, but protecting other public bodies such as the local authority from being left to pick up the costs. We welcomed the news last December of the Government’s decision to trial a longer move-on period for six months, but those six months have now come and gone, and despite numerous requests for an answer, the Government have provided no certainty on whether the trial will be extended. Can the Minister provide clarity today?

As it happens, I can. We have extended the move-on trial until the end of the year.