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  7. Proposed £13,000 settlement charge for asylum seekers sparks business-and-NGO backlash

Proposed £13,000 settlement charge for asylum seekers sparks business-and-NGO backlash

Jul 1, 2026
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Proposed £13,000 settlement charge for asylum seekers sparks business-and-NGO backlash
Reporting by the International Business Times reveals that Home Office proposals tied to the Immigration and Asylum Bill would require some successful asylum applicants to repay up to £10,000 in state accommodation costs before they can apply for permanent settlement—on top of existing £3,000 application fees. Combined, the charge could exceed £13,000 per person.

Proposed £13,000 settlement charge for asylum seekers sparks business-and-NGO backlash


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Ministers say the measure mirrors ‘student-loan-style’ repayments and aims to ease the taxpayer burden of a costly asylum estate. Refugee charities counter that it risks trapping people in temporary status and undermining labour-market integration. Employers in sectors facing skills shortages—such as social care and hospitality—worry that higher settlement hurdles will diminish the pool of candidates transitioning from asylum to work visas, pushing up recruitment costs. If enacted, the repayment scheme would apply only to future grants of protection. The government has not set the income threshold at which repayments would start, but officials indicate deductions from salary via PAYE could be used, akin to student-loan collection. Businesses employing refugees may therefore inherit a payroll-deduction obligation similar to student-loan codes and will need payroll-system updates. The proposal is expected to face intense scrutiny in committee stage. Companies reliant on refugee talent pipelines—particularly in low-margin sectors—may wish to join industry representations or risk a shrinking labour supply.

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