The UK government has announced plans to end the use of hotels for asylum seekers by 2029, a commitment made by Shadow Chancellor Rachel Reeves during her spending review presented to MPs on June 11, 2025.

This initiative aims to eliminate the costly practice of housing asylum seekers in hotels, which has drained billions from taxpayers and left many individuals in limbo.

Currently, hotel accommodations account for 76% of asylum costs, projected to reach £15.3 billion over the next decade, with hotels housing 35% of all asylum seekers.

To facilitate this transition, the government plans to expedite the processing of pending asylum applications, which is expected to save taxpayers £1 billion annually.

The strategy includes reducing the number of pending asylum requests, increasing the examination of appeals, and deporting individuals not legally entitled to remain in the UK.

As part of the new approach, the Home Office is exploring alternative accommodations, such as repurposed buildings like old tower blocks and student housing.

Refugee charities have expressed support for moving away from hotels, highlighting the need for community integration of asylum seekers, while urging the government for quicker action.

However, challenges remain, as Dame Karen Bradley, chairwoman of the Home Affairs Committee, noted that finding suitable alternative accommodations will be difficult.

Critics, including Shadow Home Secretary Chris Philp, have raised concerns about Labour's budget assumptions, arguing there is no clear plan for relocating asylum seekers once hotel use ends.

This announcement aligns with the government's broader budget priorities, which include significant funding allocations to various sectors amid ongoing economic challenges.

Additionally, the Chancellor announced an allocation of up to £280 million annually for the Border Security Command to enhance efforts against people smuggling and small boat crossings.

With over 15,000 migrants crossing the Channel in 2025 alone, the government faces increasing pressure to manage border control effectively.