The Home Secretary, Shabana Mahmood, has announced some significant changes to the UK asylum system, set out ahead of the Immigration and Asylum Bill, which was introduced to Parliament on 30 June 2026. The reforms include a new requirement for asylum seekers to repay up to £10,000 towards the cost of their accommodation and support, alongside new “safe and legal” routes for refugees to come to the UK.
This article explains, in plain terms, the changes that directly affect asylum seekers and migrants in the UK, and what they could mean for you. Because these measures are being introduced through legislation, the detail may change as the Bill passes through Parliament.
Asylum seekers to repay up to £10,000 in support costs
The headline change is that asylum seekers will be expected to repay up to £10,000 towards the cost of the accommodation and support they receive, once they begin earning.
How the repayment plan would work
Based on the government’s announcement, the key features are:
- When you pay: repayments begin once you are earning above a set threshold. The government has indicated that this would work similarly to a student loan, with eligible adults paying an amount each month above the threshold.
- How much: the total is expected to be around £10,000, though the Home Secretary will have the power to adjust the amount.
- Link to settlement: the full amount must be repaid before a person can be eligible for settled status, ILR- Indefinite Leave to Remain. Settled status is what allows someone to live, work, and study in the UK permanently.
- Leaving and returning: anyone liable for the cost who leaves the UK would have to pay the full amount if they wished to return at a future date.
- Legal basis: the powers to recover these costs are to be set out in the Immigration and Asylum Bill.
The figures behind the policy
The government has set out the following context for the change:
- It says it spent around £4 billion on accommodation and support for asylum seekers in 2025.
- The Home Office estimates the average cost of accommodating an asylum seeker at £23.25 per person per night in dispersal (longer-term) accommodation, and £144 per night in hotels.
- The Home Secretary said asylum costs had already been reduced by around £1 billion.
Ms Mahmood said it was right to ask those who can contribute to do so, describing asylum support as a right but also a responsibility, and saying the government expects people to repay the generosity of the British public where they can.
New safe and legal routes for refugees
The reforms also introduce a new sponsorship-based model for bringing refugees to the UK, with the rollout due to begin in autumn 2026.
Community sponsorship
A new community sponsorship scheme will allow communities to sponsor refugees to resettle in their area, taking responsibility for housing, integration, and helping people into work. This new model will sit outside the existing UK Resettlement Scheme (UKRS) and is intended to operate at a much higher capacity once established. At present, most resettled refugees in the UK are supported by local councils.
The government says the approach draws on Canada’s long-running community sponsorship scheme, which has operated since 1979 and has resettled almost 400,000 refugees. According to the Home Office, 70% of sponsored refugees in Canada find work within a year, 30% higher than those resettled through government schemes.
University and work routes
Alongside community sponsorship:
- Trusted universities will be able to sponsor refugees through a study route. Applications for organisations to sponsor refugees are due to open in autumn 2026, with the first arrivals expected in autumn 2027.
- A refugee work route is expected to open in 2027, allowing employers to sponsor refugees.
The Home Office will work with accredited “lead sponsors”, which must be organisations.
Safeguards and limits
The government has stressed several controls around the new routes:
- The Home Office will keep full control over who can act as a sponsor.
- All arrivals will be subject to strict biometric, criminality, and health checks.
- Refugee status will be determined in partnership with the United Nations High Commissioner for Refugees (UNHCR).
- The routes will be capped, starting from a low base and building over time.
Changes to appeals and repeat claims
The government has also indicated it will create a single route designed to prevent migrants from appealing a rejected claim and from bringing further claims about new matters before their removal. This is aimed at speeding up decisions and removals and could affect how and when arguments must be raised in a case.
What could these reforms mean for you?
While much of the coverage focuses on policy, the practical impact will be felt by individuals and families. Some points to keep in mind:
- If you are an asylum seeker who may be granted status, the proposed £10,000 repayment could affect your finances once you start earning, and repayment is linked to your ability to obtain settled status. The exact threshold, monthly amount, and timing are not yet confirmed.
- If you are planning for settlement (Indefinite Leave to Remain), under the proposals, outstanding support costs may need to be cleared before you can be granted settled status. It will be important to understand how this applies to your circumstances.
- If you are seeking protection from abroad, the new sponsorship routes are intended to provide additional, capped legal pathways, phased in from autumn 2026. Full eligibility details are still to be confirmed.
- If your claim may be refused, the proposed single route for appeals and further claims could change how and when you can challenge a decision, making early, well-prepared legal advice more important.
- Timing matters: because these changes are being introduced through legislation and rolled out in stages, the rules that apply to your case may depend on when key steps are taken.
Because the reforms are still progressing through Parliament, the details may change. We will continue to monitor the Immigration and Asylum Bill and update our clients as the position becomes clearer.
