Asylum Seeker Hotel Accommodation: Reopening

John Hayes Excerpts

Tuesday 21st January 2025 Westminster Hall

[Jack Rankin (Windsor) (Con)]

I beg to move,

That this House has considered the matter of re-opening hotels for asylum seeker accommodation.

It is a pleasure to serve under your chairmanship, Sir John, and a privilege to speak in this Chamber on an issue that is important to the British public and that needs to be urgently addressed by the Government. It is great to see that colleagues from both sides of the House have made time to discuss an issue that is emblematic of the failure in our current immigration system. The failure is, I concede, one of both sides, but it is worsening under the latest Government.

This issue cuts through to the public because it is so visible. These are not—

[Sir John Hayes (in the Chair)]

Order. I am sorry, but there are Divisions in the House. We will suspend for 15 minutes for the first Division and an additional 10 minutes for each further Division. There are to be three Divisions, so we will return in 35 minutes.

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On resuming—

[Sir John Hayes (in the Chair)]

The sitting is now resumed and can continue until 6.5 pm. I will call the Front Benchers to speak at 5.43 pm.

[Jack Rankin]

It is a privilege to speak on an issue that I know is important to the British public and needs to be urgently addressed by the Government. It is great to see colleagues here from all sides of the House.

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[Lewis Cocking (Broxbourne) (Con)]

It is a pleasure to serve under your chairmanship, Sir John. My comments today need to be viewed in the context of my interest as a local councillor.

My constituents in Broxbourne have borne the brunt of this policy in recent years. I hear loud and clear on the doorstep how angry they feel. The Home Office took control of the Marriott hotel in Cheshunt in 2022. It was just one of three hotels in my constituency at the time. In my general election campaign, I said I would fight daily to ensure that the hotel was closed to asylum seekers; and when I was leader of Broxbourne council, I fought tooth and nail to prevent another two sites within my constituency being used as asylum accommodation. The hotel in Cheshunt has since supported one of the highest numbers of asylum seekers in the east of England, while Hertfordshire as a whole was the individual council with the most hotels housing asylum seekers in 2023.

The situation we are discussing is plainly unsustainable, with millions of pounds a day being spent on these hotels across the country. My constituents have been feeling the impact on already overstretched public services. You cannot get your child into the school you want and you have to wait longer to see a GP locally.

I welcomed the actions that the last Government took to reduce reliance on asylum hotels, but there is no getting around the fact that my party made mistakes. However, it is definitely getting worse under this new Labour Government. Ultimately, it is only by deterring people from coming to the UK illegally in the first place that we will be able to get a grip on the asylum system and the immigration system. The Labour manifesto promised to end the use of hotels for asylum seekers, but the Government have been more focused on delivering promises that were not in their manifesto: increasing national insurance on business, imposing the family farm tax and stripping winter fuel payments from pensioners.

I am seriously disappointed that, in January 2025, we are discussing the reopening of hotels for asylum seeker accommodation. There were 35,651 people in hotel accommodation at the end of September, up 21% from the end of June 2024. That is a 21% increase since Labour was elected on a manifesto commitment to end the use of asylum hotels. The downward trend that was started by the last Government has been reversed, and since the general election, 14 more hotels have been taken over for the purpose. Hotels were supposed to be a temporary measure, but they are starting to feel anything but temporary to my residents in Broxbourne. The Minister has said that nine hotels are scheduled to close by March, but I have my doubts that the Government will meet that commitment.

The Government have failed to take the necessary steps to deter the number of asylum seekers coming to this country illegally in the first place. Small boat crossings are up since July, and so are the number of cases awaiting a decision in the asylum backlog. I urge the Minister to put the words “smash the gangs” into action by getting a proper deterrent in place, ensuring that every failed asylum seeker is removed, closing all the asylum hotels and significantly cutting immigration.

[Sir John Hayes (in the Chair)]

I should have said before the previous speaker that if Members wish to speak, they need to bob.

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[Rupert Lowe (Great Yarmouth) (Reform)]

rose—

[Sir John Hayes (in the Chair)]

Order. I will call the hon. Gentleman, although he has not bobbed throughout the debate despite the fact that I said that was the appropriate thing to do. With the exception of the Minister, the shadow Minister, myself and Sir Gavin, we are all new Members here, so it is important to respect the conventions and courtesies.

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[Susan Murray (Mid Dunbartonshire) (LD)]

It is a pleasure to serve under your chairmanship, Sir John. I am grateful for the opportunity to speak on the important issue of reopening hotels to accommodate asylum seekers. Despite repeated ministerial promises, we continue to see the result of a broken system—a system that has caused immense hardship for asylum seekers and communities and has placed a significant burden on taxpayers.

Let us be clear that this debate arises only because of successive Conservative Governments having failed to deal efficiently with the growing backlog of asylum claims. According to the Migration Observatory, the number of outstanding asylum applications under the Conservatives soared from 27,000 in 2018 to 132,000 by 2022. As of September 2024, Home Office data indicates that over 97,000 cases involving 133,000 individuals still await an initial decision, with a further 127,000 in the appeals and removal process. Despite repeated assurances, most claimants still wait beyond six months for any clarity on their status. During that process, asylum seekers are trapped, unable to work, unable to integrate and forced to depend on Government funds.

The reliance on contingency accommodation, whether in the form of hotels, barges or former military barracks, is an expensive sticking plaster to cover a deeper wound. It provides neither dignity for asylum seekers nor value for money for the taxpayer. We have heard Ministers assert that these hotels are only a short-term measure, yet Home Office figures show that there were over 35,000 individuals in hotel accommodation as of September 2024. Successive Governments have spoken of reducing dependency on this provision, yet the number of people in hotels remains persistently high. Worse still, the backlog remains alarmingly large and we are left grappling with new, reactive announcements rather than a cohesive plan.

The situation benefits no one. The fundamental problem is the time it takes to make decisions on asylum claims, coupled with the ban on working. It is the worst of both worlds: forced inactivity for those seeking safety and to pay their fair share, and an unnecessary bill for the public purse. The National Institute of Economic and Social Research estimates that granting the right to work would generate £1.3 billion in additional tax revenue and would reduce expenditure by as much as £6.7 billion each year. We could address the backlog more effectively and reduce the public cost if we ended the rigid prohibition on work, yet time and again Governments have resisted such a solution.

The Liberal Democrats have advocated a clear, sensible plan. First, we propose creating a dedicated, well-resourced processing unit that is separate from the Home Office, with a singular mission of resolving cases quickly. Secondly, we propose reinstating a six-month service standard so that claimants receive an initial decision quickly. Finally, we would grant asylum seekers the right to work after a set period, allowing them to pay their fair share instead of languishing in costly Government-funded accommodation or on street corners.

As we consider whether to reopen asylum hotels for asylum seekers, we must remember that no one genuinely wants this. Asylum seekers deserve dignified conditions, local communities deserve to feel safe from people loitering with nothing to do and taxpayers deserve an end to the wasteful spending brought on by Government’s incompetence. I urge colleagues from all sides of the House to support practical reforms as proposed by the Liberal Democrats, which will finally clear the asylum backlog, end the expensive overreliance on temporary accommodation, such as asylum hotels, and allow those who are seeking refuge to stand on their own feet and contribute to society.

[Sir John Hayes (in the Chair)]

I would like to call the Minister at 5.53 pm, which will give her 10 minutes.

[Matt Vickers (Stockton West) (Con)]

Thank you, Sir John, for chairing your third debate. I thank my hon. Friend the Member for Windsor (Jack Rankin) for proposing this discussion on an important issue for many MPs and their constituents across the country.

If we need to provide accommodation for those who arrive in the UK seeking asylum, it is critical that we do all we can to ensure that that accommodation is cost-effective and does not unduly burden our communities. Unfortunately, we know all too well that hotel accommodation for asylum seekers fails to meet either of those criteria. Despite the disagreements that have been expressed today, this is an issue on which all Members of the House can and should agree.

As the Minister is aware, significant steps were taken by the last Government to reduce the number of people housed in hotel accommodation, which went from a peak of 56,042 in September 2023 to 29,585 at the end of June 2024. That is a 47% decrease. That was accompanied by the closure of many hotels from their peak number. It was therefore welcome to see this Government’s manifesto promise to close asylum hotels entirely. The pledge was clear: the Government would “end asylum hotels”. That is a goal that we all hope they will achieve, as it would undoubtedly benefit communities across the country.

The unfortunate reality, however, is that since this Government took power, we have gone in the opposite direction. Official Home Office statistics show that as of 30 September, 35,651 people were in hotel accommodation, an increase of 21% since the general election. Instead of hotels being closed, we have seen the contrary: the Minister informed the House last week that there has been a net increase of six hotels since the election. We have heard from MPs that announcements about new hotels are often made with little notice, leaving minimal time to prepare and a lack of clarity. Although the Government should undoubtedly improve that process, surely the most impactful approach would be to reduce the reliance on hotel accommodation altogether.

Sometimes it is too easy to focus on statistics. Although they provide an important part of the picture, it is through speaking to residents that we hear about the very real consequences for communities. In November, Councillor Nathan Evans invited me to visit Altrincham to see the huge impact of such a hotel on his community. I spoke to residents, business owners and the local chamber of commerce about the direct and indirect effects of Labour’s decisions. They emphasised the need for safety, security and clear communication. Those were reasonable requests that they felt had fallen on deaf ears at both the Home Office and the local authority.

As well as the concerns about security, there was a very evident impact on the local economy. In Altrincham, the loss of nearly 300 hotel places in the local hospitality sector was huge. Families who had worked day and night for years to create incredible small businesses, operating in an already challenging environment, now had to deal with another huge and unpredicted blow to their footfall. I suggest that the Minister considers visiting Altrincham, not only to see some incredible small businesses with a unique offering, but to see the impact of the decisions she makes.

Too often, places like Altrincham receive information at the last minute, leaving them unable to prepare and taken aback by the sudden loss of normal business generated by these hotels. That lack of warning undermines trust and further fosters animosity towards the system. I understand that this is a complex issue, but will the Minister consider the suggestion that the shadow Home Secretary, my right hon. Friend the Member for Croydon South (Chris Philp), made in November: that greater notice be given to MPs before a hotel opens in their constituency? I also ask the Minister how sites are chosen and what consideration is given to proximity to local schools, care homes and centres for the vulnerable, as well as the impact on the local business community.

I recognise that the Minister and other hon. Members will point out that the number of people housed in hotels was too high under the last Government. They are correct, and my party does not shy away from that fact. The Leader of the Opposition has been clear that mistakes were made regarding immigration. Nevertheless, the last Government were taking steps to rectify these issues by closing hotels and attempting to halt illegal immigration. Since the election, however, we have seen increases both in contingency accommodation and in dispersal accommodation.

Ultimately, the Minister, like the rest of us, knows the root cause of the problem: the illegal and dangerous channel crossings. As of 19 January, 24,132 people had crossed the channel in small boats since the election, a 30% increase on the same period in 2023-24. What is more, the number of those being deported is actually going down.

We need a deterrent. If people arrive here illegally, they should not be allowed to stay. Until that is the case, they will continue to arrive in ever increasing numbers. Despite pledges to “smash the gangs”, it appears that the gangs remain active and evasive. This behaviour underscores the importance of deterrence, as highlighted by the National Crime Agency and reportedly by the head of the Government’s Border Security Command.

Policing alone is insufficient. The rise in small boat crossings illustrates that scrapping the UK’s deterrent policy before it had even started was a short-sighted decision; in fact, it was a decision of national self-harm. The deterrent approach has been successfully implemented in other countries such as Australia, which managed to resolve similar issues through decisive action. We have even seen it working here in the UK, with the Albania returns agreement reducing arrivals by more than 90%. Given the increasing numbers and the failure to reduce small boat crossings into this country, will the Government reconsider whether their approach to illegal migration has been effective thus far?

On costs, the Government’s policy is to expedite asylum decisions. Consequently, the costs associated with accepted migrants risk being obscured within the welfare system. The Home Office has previously acknowledged that it has no estimate of the potential cost of benefit claims and council-housing bills for those individuals. Will the Minister commit to recording and publishing the costs for migrants whose asylum claims are accepted?

I know that the Minister has previously stated that hotels are a temporary measure, not a solution. While she may be well intentioned, the continuing small boat crossings suggest that the need for contingency accommodation is unlikely to subside without decisive action. Can the Minister therefore explain whether there is a contingency plan should small boat crossings persist? Additionally, will the Government ensure that every possible policy option is explored to reduce the number of people in hotel accommodation in a cost-effective manner?

[Sir John Hayes (in the Chair)]

I call the Minister of State for Border Security and Asylum. Minister, I hope that you might finish at 6.03 pm to allow the hon. Member for Windsor to say a few words at the end.

[The Minister for Border Security and Asylum (Dame Angela Eagle)]

It is a pleasure to serve under your chairmanship, Sir John. Having sat in the Westminster Hall Chair many a time, I can report that in this Parliament it seems to be much warmer in this room. It used to be freezing, but perhaps my complaints about the heating when I was in the Chair have had a positive effect in this Parliament—for the comfort of us all, I hope.

[Sir John Hayes (in the Chair)]

I’m going to take all the credit.

[Dame Angela Eagle]

It is a pleasure to respond to this debate. I congratulate the hon. Member for Windsor (Jack Rankin) on securing it and thank all Members who have contributed.

I remind hon. Members of the strained asylum system that this Government inherited. Listening to all the contributions, I had to pinch myself and think about the reality: we had 14 years in opposition; we have had six months, getting on for perhaps seven, in government—yet everything is somehow our fault. There was a slight nod in some of the contributions, including those of the hon. Members for Windsor and for Stockton West (Matt Vickers), towards the mistakes that were made in the running of the asylum system during the past 14 years. Mistakes certainly were made, and they leave legacies: messes to clear up and difficult things to do.

We inherited a system with massive backlogs. There was an attempt to introduce a completely different system, the so-called Rwanda deterrent and the Illegal Migration Act 2023, which distracted the Government from the day job, as I have called it. Because of the design of the Illegal Migration Act, we also had a huge build-up of those who had arrived in the system from March 2023, when the switch was meant to be being arranged. They were put in hotels with absolutely nowhere to go, with no prospect of having their claims looked at and awaiting a theoretical trip to Rwanda. No trip ever happened.

To those who say that the Rwanda scheme was a deterrent, I gently point out that from when it was first announced in the Bill to when it was scrapped, 84,000 people crossed the channel in small boats. If that is a deterrent, it is a very peculiar one. Deterrence is difficult to achieve when people are desperate. We have to look to see whether that worked, and I do not think it did. It led to a huge build-up. The hon. Member for Stockton West hinted at that when he pointed out that the previous Government had more than 400 hotels open at one point. That was because of the build-up in the old system and the build-up in the new system. In the old system, people were in huge queues. With the new system, the previous Government’s idea was that they would not even process any of them: they would just hold them in hotels until the new system was up and running. In essence there were two backlogs.

The previous Government then decided that they would make a massive attempt to clear what they called the legacy backlog: the people who arrived before the Rwanda scheme was designed and announced. They did that for first asylum decisions in 2023. Those who were granted asylum left the system, and many ended up homeless, but those who were not granted asylum appealed. Those who were not granted asylum in that gallop to deal with the legacy backlog are still in the appeals system. The number of people in the appeals system doubled as a result of the previous Government’s work on the legacy backlog. We then had the legacy backlog dealt with at first hearing, with half of those cases going into the appeals system, and a growing number of asylum seekers who had arrived after March 2023, with no prospect of being dealt with at all, just filling hotels. That is why the previous Government had more than 400 hotels.

We can disagree about whether the Rwanda scheme would have worked. Personally, I do not think it was a deterrent—that so many people crossed the channel while it was in prospect demonstrates that it was not a deterrent. It also cost a great deal of money: the National Audit Office said that the payments the Government agreed to make to people who were going to be deported to Rwanda amounted to around £156,000 per person over five years. In theory, they were going to deport 250 people a week. I do not think that was realistic or that it was ever going to be deliverable. Opposition Members are entitled to a different view, but the view of the Government is that the scheme was not going to work.

We are dealing with an issue with no easy answers. There are international agreements that we have signed up to, including the refugee conventions that give protection to people who are fleeing danger and were put into place after the second world war. We are now in an era where we have more people on the move because of events around the world than we have had since the second world war, which has put pressure on the asylum systems of all countries.

There are asylum seekers and there are economic migrants. When listening to the hon. Member for Windsor’s contribution, I was a bit distressed that he did not distinguish between the two; he seemed to think that everyone who arrives is automatically an economic migrant who ought to be deported. That is his view, but it is not the view of the law. The previous Government, under his party, had a system that tried to see whether people who were claiming asylum were actually asylum seekers or were failed asylum seekers—there is a difference.

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[Sir John Hayes (in the Chair)]

Please finish just before 6.05 pm, to leave time for me to put the Question.