Prime Minister Andy Burnham Plans to End Asylum Hotel Use

Prime Minister Andy Burnham is seeking to reduce the role of private companies in the United Kingdom's asylum system as part of a broader Labour Party effort to curb the outsourcing of public services. The initiative aims to end the use of hotels for asylum seekers by 2029 and shift the responsibility for sourcing housing to local councils.

The asylum system cost an estimated £4.9 billion in 2024-25, with hotel accommodation alone exceeding £2 billion. While the Home Office reports that overall costs have fallen by £1 billion since the general election due to fewer applications and reduced hotel usage, the Home Affairs Committee has accused the department of mismanaging contracts and squandering billions in taxpayer funds.

Transitioning the system faces significant hurdles, including budget pressures and a shortage of affordable housing. Additionally, 24 local councils controlled by the Reform UK party have refused to take in additional asylum seekers. Home Secretary Shabana Mahmood stated she wants asylum responsibility spread more fairly across communities, though Home Affairs Committee chair Karen Bradley noted the Home Office is not yet confident in replacing current private contracts.