Over 100 NGOs and refugee charities call on the government to end the use of hotels for housing asylum seekers as soon as possible

107 leaders of NGOs and refugee charities from across the UK, including Refugee Council, Refugee Action, Care International UK, Choose Love, the ONE campaign, International Rescue Committee UK, Safe Passage International, Save the Children UK, WaterAid and many more, have come together to write an open letter to the Prime Minister, calling for the government to end the use of hotels for housing asylum seekers as soon as possible and stop using the UK aid budget to cover these costs.

Following the government’s decision to cut the UK aid budget from 0.5% GNI to 0.3% to fund an increase in defence spending, organisations are warning the government that if high levels of UK aid continue to be diverted to cover asylum accommodation costs in the UK, the already diminished budget will be stretched even further, leaving even less for vital development and humanitarian programmes. Asylum seekers must be supported, but this funding should come from the Home Office’s own budget rather than being diverted from the limited UK aid budget.

The letter highlights that “the reliance on extremely expensive and unsuitable hotel accommodation, resulted in the asylum system costing more and more money” and refers to the government’s latest provisional Statistics for International Development for 2024 which reveal that 20% (£2.8bn) of the UK’s aid budget continues to be spent supporting refugees and asylum seekers domestically.

The letter calls for the government to find more cost-effective solutions to house asylum seekers and refugees, recommending that they scale up “the use of more cost-effective and appropriate community housing for asylum seekers by giving local authorities responsibility and resources to accommodate people seeking asylum, rather than private companies.”

The 107 leaders call on the government to utilise the 2026 break clauses in the hotel contracts to achieve this.

Polling shows that 80% of the British public want an approach to the asylum system that is well managed, fair and compassionate. However, this cannot justifiably be counted as UK aid spending.

The letter also highlights that “poverty, conflict, and climate change are key drivers of displacement” and “spending increasingly finite UK aid resources domestically rather than on these core areas undermines the UK’s efforts to prevent displacement.”

Romilly Greenhill, CEO of Bond, the UK network for organisations working in international development and humanitarian assistance, said:

At a time when UK aid is being slashed, every penny counts. It is right that we support refugees and asylum seekers in the UK, but this must come from its own budget. Continuing to spend billions on expensive hotel contracts is both wrong and a waste of public money.

We urge the government to reduce the amount of UK aid spent on these inflated hotel contracts and ensure that any recovered funds are directed back to the UK aid budget to directly support the world’s most marginalised communities.

Imran Hussain, Executive Director of External Affairs at the Refugee Council, said:

It is vitally important overseas aid is used as it was always supposed to be used – to support people in need around the world. This is fundamental for making the world a safer, more secure place. It is also key for preventing people from becoming forcibly displaced from their homes and in search of safety in other countries, including Britain.

Poor policy decisions and mismanagement of the asylum system have led to costs spiralling. The most effective way to take costs out of the system is by working quickly and fairly to determine who is a refugee and who has no right to stay here. Get that right, and the accommodation costs will fall.

Sarah Champion MP, Chair of Parliament’s Select Committee for International Development, said:

Of course, we have a duty to support refugees and asylum seekers but using the UK aid budget to fund overpriced hotels is completely the wrong approach. These expensive and inappropriate hotel contracts funded by the taxpayer must end.

We urgently need a fair and humane asylum system at home that doesn’t come at the cost of abandoning those already facing hardship globally.

ENDS.

Notes for editors

Read the letter co-ordinated by Bond, Refugee Council and Asylum Reform Initiative.
In 2024, the UK spent more than 20% (£2.8bn) of UK aid on costs associated with housing asylum seekers in the UK. Read Bond’s reaction.
On Tuesday 25 February, the Prime Minister announced that the UK Official Development Assistance (ODA) will be reduced by 0.2 % of GNI, to fund an increase in defence spending from 2.3 to 2.5% of GDP by 2027. This cut will bring UK ODA as a percentage of GNI to 0.3%. Bond is urging the government to conduct and publish an impact assessment on these cuts. Read Bond’s reaction.
Read Bond’s latest blog on the four ways the government can manage the planned UK aid cuts to limit their damage.
Bond is the UK network for organisations working in international development. Bond unites and supports a diverse network of over 350 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.
The Refugee Council is the nation’s refugee charity. Together with community groups, partners and volunteers, we help people who have escaped war and persecution to rebuild their lives, integrate into communities, and play their part in Britain. Born in the aftermath of World War II, our frontline services support refugees to find safety, get to know their neighbours, and enter education, training or work. We share our evidence and expertise with policymakers to help build integrated communities where everyone can contribute.
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