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Immigration and Money

The Asylum System Costs £4.9 Billion a Year and Still Does Not Work

The Public Accounts Committee says the asylum system is under severe pressure. It cost £4.9 billion in 2024/25, around £2.7 billion of it on accommodation, and claims have more than doubled since 2019. Tighter laws may raise refusals, but the Home Office’s own analysis says most of those refused will still remain.

By Open Govt · 3 July 2026

The Public Accounts Committee says the asylum system is under severe pressure. The Home Office and Ministry of Justice spent around £4.9 billion on asylum in 2024/25, including approximately £2.7 billion on accommodation alone. Around 100,600 people claimed asylum in the year ending December 2025, more than double the number in the year ending December 2019.

That is the story nobody wants to tell properly. Not the boats. Not the hotels. The administrative failure that turns every delayed decision into a cost. Every asylum claim that sits unprocessed for months increases accommodation spending. Every removal that is promised and not delivered feeds public anger. Every chaotic housing placement turns a national system failure into a local fight, which is how you get Stoke Heath.

The policy contradiction is worse than the cost. Tighter asylum laws may increase the refusal rate, but Home Office analysis suggests 55 percent of those refused under the new restrictions may still remain in the UK because there is nowhere to remove them to and no enforcement capacity to do it. Ministers get the headline of toughness. The system stays jammed. The bill stays at £4.9 billion. The public is being told the problem is being fixed by people who know it is not.

Published by Open Govt on 3 July 2026.