The government spent £2.1 billion on hotels for asylum seekers from April 2024 to March 2025, averaging £5.77 million daily, down from £3 billion or £8.3 million daily the previous year. This reduction is attributed to the government's shift to cheaper accommodation and room sharing. Despite this, a surge in small boat crossings could lead to greater demand for hotels. At the end of March 2025, 32,345 asylum seekers were in hotels, up from June's 29,585. Families and children have been prioritized for moves into local housing and HMOs.
The government spent nearly a third less on hotels to house asylum seekers between April 2024 and March 2025, with a total expenditure of £2.1bn.
Data obtained by BBC Verify shows the saving has been driven by a reduction in the average nightly cost per person housed, after a government move to use cheaper forms of accommodation.
Dr. Peter Walsh from the Migration Observatory stated the surge in small boat crossings could lead to a renewed reliance on hotels, indicating hotels will remain necessary for asylum seekers.
There were 32,345 people in asylum hotels at the end of March 2025, up from 29,585 at the end of June the previous year.
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