Shabana Mahmood, the Home Secretary, is set to announce a new policy on Tuesday requiring asylum seekers in the UK to repay around £10,000 in state-funded living costs before they can qualify for settled status. This announcement comes as leadership transitions from Sir Keir Starmer to Andy Burnham as Prime Minister.
The proposed rule aims to ensure that asylum seekers who benefit from public support contribute back to the system. Ms. Mahmood stated, “Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.” The Home Office has confirmed that migrants will need to clear the full repayment amount before becoming eligible for settlement.
However, experts warn the financial impact may be limited. An immigration specialist noted that less than 15% of refugees earn more than £20,000 within five years of receiving asylum, suggesting the funds raised will be relatively small.
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Criticism from refugee advocates has been swift. Imran Hussain, Director of External Affairs at the Refugee Council, described the repayment as “an unfair and impractical extra tax on refugees who have fled persecution, torture, and war.” He emphasized that many asylum seekers struggle because they are prohibited from working while their claims are processed, and this new financial demand could hinder their efforts to rebuild their lives.
Zoe Dexter, Housing and Welfare Manager at the Helen Bamber Foundation, called the policy “performative cruelty,” criticizing the government for announcing measures without addressing persistent delays in the asylum system or providing a credible plan for reform.
Madeleine Sumption, Director of the University of Oxford’s Migration Observatory, pointed out that unless repayment thresholds are set significantly below the minimum wage, very few asylum recipients would earn enough to meet the repayment requirement. She also highlighted potential unintended consequences, such as discouraging asylum seekers from accepting accommodations or pursuing employment after gaining refugee status due to higher effective tax rates.
Overall, while the new scheme may generate limited revenue due to the low-income nature of the asylum population, it represents a significant shift in the government’s approach to managing asylum support and integration.