Asylum Hotels To End Soon: Here's How The UK Government Will Do It

As the UK asylum hotel debacle deepens in 2025, the Home Office faces backlash over a chaotic asylum system that has squandered billions in taxpayer costs on temporary housing for 32,000 asylum seekers. Prime Minister Sir Keir Starmer's asylum plan pledges to end asylum hotels by 2029 through military sites for asylum seekers and alternative accommodations, slashing daily outlays of £5.5 million.

As public fury mounts over this failed legacy, the government's strategy aims to restore order, but critics question its feasibility amid rising claims and community strains.

Squandered Billions: The Costly Legacy of Mismanagement

The Home Office's handling of asylum accommodation in the UK has drawn sharp condemnation in a 27 October 2025 report, branding it a failed, chaotic and expensive operation that tripled expenses to over £15 billion. 'Flawed contracts' and 'incompetent delivery' forced reliance on hotels as defaults, not stopgaps, amid surging demands that peaked at 56,000 occupants in 2023.

Annual spending hit £2.1 billion for the year ending 31 March 2025, down 30% from prior peaks, largely due to cramming more people per site. Still, the average cost per person remained £170 per day—eight times the dispersal cost of £20.

On 27 October, Starmer declared, 'I can't tell you how frustrated and angry I am that we've been left with a mess as big as this by the last government,' vowing determination to close every hotel. The scandal underscores urgent calls for reforms to curb waste and restore fiscal prudence.

Shifting to Military Sites and Alternatives

To expedite the end of hotel use, Starmer instructed officials to fast-track military sites, targeting two sites to house 900 men by 30 November 2025. Cameron Barracks in Inverness, Scotland and Crowborough Army Training Camp in East Sussex will house single male asylum seekers. These join existing facilities like MDP Wethersfield in Essex and Napier Barracks in Kent.

Broader plans include industrial sites, temporary structures, and disused buildings, all adhering to health and safety standards. 'We promised to stop the use of asylum hotels - and we will,' the Home Office affirmed on X on 22 August 2025, stressing that closures must be orderly to avoid reopening sites.

Housing Secretary Steve Reed signalled on 27 October 2025 that progress on ending the use of hotels for asylum accommodation will be announced within weeks. The government is looking at modular forms of building to ensure sites could go up quickly, and using big sites such as military bases to end the use of hotels entirely.

Challenges and Criticisms Facing the Plan

Despite ambitions, the UK asylum hotels 2025 overhaul encounters hurdles. The Refugee Council has urged the government to close hotels by 2026 via one-off schemes, deeming 2029 too slow. Campaigners decry inadequate hotel conditions and rushed transitions that risk safeguarding lapses, as highlighted in a recent parliamentary probe.

Home Office figures released in August 2025 show 32,059 asylum seekers in hotels as of June—around 31% of supported cases—at an average daily cost of £5.77 million, up 8% year-on-year. Critics like the Migration Observatory warn of persistent demand from 111,084 claims to June 2025, the highest on record, could potentially overwhelm new sites.

A High Court ruling on 26 October 2025 halted a refugee eviction under the 28-day policy, exposing enforcement flaws. While the strategy promises relief, balancing speed, humanity, and budgets remains pivotal to quell the chaotic asylum system. The push to end asylum hotels may define Starmer's immigration legacy, yet success hinges on swift execution and addressing ingrained Home Office asylum pitfalls to safeguard both seekers and communities.