Labour Faces Backlash Over Asylum Hotels

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Official figures show more than 32,000 asylum seekers were accommodated in hotels across the UK by June 2025, despite government pledges to phase out the practice.

Critics say reliance on hotels is placing pressure on local services and costing taxpayers millions each week. Independent research has estimated the average cost of hotel housing at £150 per person per night, significantly higher than long-term accommodation options.

Plans to expand alternatives such as former military bases and barges have faced setbacks. A National Audit Office report earlier this year found these sites were housing fewer people than expected and could prove more expensive than hotels.

Opposition MPs have accused Labour of losing control of the asylum system, arguing that slow processing of claims is fuelling demand for hotel accommodation. Former Border Force officials have also warned that the current approach risks encouraging Channel crossings and empowering criminal smuggling networks.

The Home Office recorded 111,084 asylum applications in the year to June 2025, adding to a backlog that critics argue is prolonging reliance on hotels.

Labour ministers maintain they are committed to reducing hotel use, insisting work is under way to cut the backlog and expand accommodation capacity. However, with applications remaining high and local communities voicing concerns, pressure on the government to deliver faster results is intensifying.