Question to the Home Office:

To ask the Secretary of State for the Home Department, Pursuant to the answer of 2 December 2025, to Question 94192, on Holiday Accommodation: Taxation, if she will make an assessment of the potential impact of applying the levy to asylum seekers in hotels on costs to the public purse.

The Home Office has a statutory obligation to provide support to destitute asylum seekers and as such these are not discretionary overnight stays.

The Government’s position remains that the use of hotels to accommodate asylum seekers is undesirable and unsustainable. Work is underway to expand the dispersal estate and develop alternative accommodation models to better deliver value for money and reduce impact on communities.

To support local authorities, the Home Office provides significant grant funding to manage the pressures associated with asylum accommodation. This includes the Asylum Grant 395 which is designed to offset costs for councils and support local services impacted by the use of hotels and other accommodation. Under this grant local authorities received an initial payment of £1,200 per bedspace occupied on 30 March 2025; with £100 per month for each additional occupied bedspace between 1 April 2025 and 31 March 2026.

Additional grant funding is available for the support of unaccompanied asylum-seeking children and care leavers. These grants form part of a wider package of measures to ensure that local authorities are not disproportionately burdened by the statutory asylum support system.