The UK’s Home Office has introduced reforms requiring asylum seekers to pay around £10,000, approximately ₦18 million before becoming eligible for settlement in the country.

The bill was introduced to parliament on Tuesday and sets out new powers for the Home Office to recover costs from adults who have received asylum support, including subsistence payments or accommodation, provided they have access to sufficient funds.

The new costs will also apply to previous asylum seekers who leave the UK and wish to return.

Asylum seekers have not typically been expected to pay for settlement, and such requirements are not a global norm.

Why the government says it is necessary

Home Secretary Shabana Mahmood said asylum seekers have become a financial burden on British taxpayers, citing the cost of accommodation as the primary driver of the policy change.

“The cost of asylum accommodation on the British taxpayer is too high,” Mahmood said.

“We have already reduced asylum costs by £1 billion, but it is also right that we ask those who can contribute to do so.”

Mahmood framed the reform not as a penalty but as a matter of shared responsibility.

“Receiving asylum support is a right, but it is also a responsibility. Once people can contribute and repay the generosity of the British people, we expect them to do so.”

The Home Office estimates the average cost per person per night at £23.25 in dispersal accommodation and £144 in hotel accommodation, while subsistence payments range from £9.95 to £49.18 per person per week. The £10,000 settlement fee is framed as partial recovery of these cumulative costs rather than a flat administrative charge.

Employment data underpins the policy

The government cited employment figures to justify its expectation that settled asylum seekers can repay costs. According to UK government data, a quarter of 16 to 64-year-olds granted asylum status between 2015 and 2023 were in employment within the same calendar year they received status, rising to 50 percent two years after refugee status was granted.

Of those in employment eight years after the grant, 37 percent were in full-time work with median earnings of £23,000, and 40 percent were earning above minimum wage, figures the Home Office said demonstrate that many asylum seekers develop the financial capacity to contribute to the costs of their settlement.

Broader context

The reform marks a significant departure from the UK’s established approach to asylum, under which financial contribution towards settlement has not been a condition. The policy is likely to face legal challenges given that cost recovery of this kind falls outside standard international practice on refugee protection.

The Home Office said the reforms will ensure asylum seekers take responsibility for the financial impact of their presence in the country, though critics are expected to argue the policy risks deterring legitimate asylum claims and penalising the most vulnerable arrivals regardless of financial circumstance.

For Nigerians and other nationals who seek asylum in the UK, the ₦18 million equivalent cost represents a substantial barrier, particularly given the currency gap between sterling and the naira.

The bill is now before parliament and its passage will determine when and how the new conditions take effect.