The new figure is a sharp rise from the previous daily cost of £6 million and coincides with an unprecedented backlog of asylum cases, prompting calls for swift action to address the mounting costs.
In its annual report, the UK Home Office disclosed that the daily cost of housing asylum seekers has now reached £8 million (approximately €9.2 million), translating to an annual expenditure exceeding £3 billion. This marks a substantial increase from the previous daily cost of £6 million.
The annual report stresses the need to alleviate the current strain on the asylum system and accommodation services. The UK is currently facing an unprecedented backlog of asylum cases which is contributing to the high costs.
Rather than addressing the delays in processing asylum claims or safe and cost effective housing solutions, the report instead primarily focuses on the provisions in the newly introduced Illegal Migration Act which will detain and deport irregular arrivals. The report claims that the legislation will supposedly act as a "deterrent", providing further barriers to those attempting to seek asylum in the UK.
"We need to stop the boats to relieve the unsustainable pressure on our asylum system and accommodation services...The Illegal Migration Act will ensure anyone arriving illegally can be detained and swiftly removed, so that people know they cannot skip the queue by coming here illegally," the report states.
Also read: UK: Delays beset government plans for migrant accommodation
Backlog contributing to high costs
Government critics have argued that the high costs can be attributed to the volume of migrants and asylum seekers currently awaiting decisions on their applications. They argue that more effective measures to address this backlog could have reduced the need to provide accommodation to such a substantial number of people.
Currently, an estimated 175,000 are people awaiting decisions on their asylum applications, many of whom are being housed in hotel accommodation. Based on the current rate of asylum decisions, it is anticipated that at least three-quarters of these applicants will receive a positive decision on their claims.
Interim Home Office figures from the end of June 2023 indicate that a record-breaking 50,546 individuals were residing in what is referred to as "contingency accommodation," which includes hotels and reception centers.
Also read: Backlog of asylum applications in the UK reaches record high
Housing crisis
The government has emphasized the immediate need to address the high costs of housing migrants in hotels, which has been big business for a number of private companies. However, alternative reportedly lower cost solutions explored by the government to house asylum seekers awaiting processing, have largely also been problematic. These include using barges, such as the Bibby Stockholm in Dorset, and converting former military sites into accommodation facilities.
Some critics have questioned whether these solutions are even economically cheaper. Especially if, as in the case of the Bibby Stockholm, only around 15 migrants were taken on board a facility that was refitted to house 500, and then taken off again due to problems after just a few days.
The current sites the government has proposed, none of which are full to capacity, if they are even being utilized at all, would only house a few thousand of the more than 50,000 currently in contingency accommodation.
The Home Office has announced plans to set up basic accommodation at scale. The government announced that it will use military sites being disposed of in Essex and Lincolnshire, these are to be "scaled up" over the coming months and will provide accommodation to several thousand asylum seekers.
The report also stated that the government is going ahead with other forms of more controversial alternative accommodation such as barges, claiming that "similar projects have been successful in Scotland and the Netherlands".
Also read: UK removes migrants from barge after finding bacteria in water supply: media reports
'Staggering' costs
Shadow home secretary Yvette Cooper (Labour) has used these new figures to condemn the Conservative Party's management of the Home Office budget, describing the costs as "staggering." Cooper sharply criticized the government for soaring hotel bills, attributing the situation to the government's "asylum chaos," holding it responsible for its failure to effectively address the issue. Cooper further expressed shock at the 33% increase in hotel accommodation costs since Chancellor Rishi Sunak's promise to end hotel usage.
Amid these mounting expenses, annual report also revealed bonuses awarded to key figures within the Home Office, sparking debate about their justification. The Home Office's director general for migration and borders received a bonus of up to £20,000 on top of a £135,000 salary, while Phil Douglas, the interim head of the UK's border agency Border Force, was awarded up to £5,000 for excellent performance, in addition to his £115,000 salary. The prime minister's spokesman deferred to the Home Office when questioned about the propriety of these bonuses.
Also read: UK spending far more on migrants than on aid for Africa, official figures reveal
Government failing to prevent loss of life
The Home Office's annual report also raises grave concerns about the department's ability to prevent loss of life within the immigration system.
Furthermore, the report casts doubts on the effectiveness of the UK's partnership with France in reducing the number of small boat crossings. It deems there is a risk that the current approach "does not meet the stated ambition of drastically reducing the number of small boat crossings".
Rishi Sunak has made preventing small boat crossings across the English Channel one of his top priorities in anticipation of the upcoming general election. Since taking office, preliminary statistics indicate that over 31,000 asylum seekers have crossed the Channel, with nearly 24,000 arriving in 2023, according to Home Office data.
The opposition Labour party are also keen to lay out some of their policies on migration for prospective voters in next year's expected election. Shadow Home Secretary Cooper outlined Labour's approach to ending hotel usage and addressing migrant crossings. She proposed targeting the criminal networks supporting human trafficking as a means to curb irregular migration.
The Independent reported that during a trip to The Hague in the Netherlands, Cooper and Labour leader Sir Keir Starmer discussed their plan for tackling irregular migration and signaled a potential deal with the European Union, which would involve the UK taking a certain number of asylum seekers who arrive in the bloc in exchange for the ability to return those crossing the English Channel.
Also read: English Channel: Summer sees migrants risk all to reach UK via unstable boats