Question to the Home Office:

To ask the Secretary of State for the Home Department, what discussions she has had with local authorities on the potential impact of the costs of supporting asylum seekers on the financial sustainability of local authorities.

This Government inherited an asylum system under exceptional strain, with tens of thousands of people stuck in limbo without any prospect of having their claims processed. At their peak use under the previous government, in the autumn of 2023, more than 400 asylum hotels were being leased by the Home Office, at a cost of almost £9 million a day.

Inevitably, due to the size of the backlog we inherited, the Government has been forced to continue with the use of hotels for the time being. It remains our absolute commitment to end the use of hotels over time, as part of our reduction in overall asylum accommodation costs.

The Home Office continues to work closely with local authorities to manage all the pressures arising from the provision of asylum accommodation including the impact on wider local authority obligations and plans.

The Home Office has delivered various grants through which we provide funds to support local authorities housing asylum seekers.

Working closely with MHCLG, we are also making efficiencies in supporting the integration of newly recognised refugees to mitigate homelessness risks. This includes the sharing of cross-cohort, place-based data with partners to support better planning, and the completion of scoping exercises to understand the full costs to LAs and ensure our funding package is appropriate.