The policy follows a BBC investigation into widespread taxi use by asylum seekers and matches a Home Office review of transport arrangements, including a notable annual taxi spend.

Critics warn the vulnerability threshold may be too high and raise concerns about inconsistent assessments and profiteering from private contracts.

Free transport to doctor’s visits will be removed, with the restriction also applying to hospital appointments in exceptional circumstances and to GP visits, as confirmed by the Home Secretary.

The UK Home Office will ban asylum seekers from using taxis for medical appointments from February, directing them to use buses and other public transport instead.

Taxis will be strictly limited to exceptional, evidenced cases such as disabilities, serious illnesses, or pregnancy, and must be approved by the Home Office.

Labour and Liberal Democrat figures criticize the move, arguing it wastes money and questions past contracts, with Lib Dem MP Paul Kohler calling it a shocking indictment of previous arrangements.

As of now, tens of thousands of asylum seekers remain in hotels, and enforcement against illegal migrants is being stepped up, with substantial numbers of removals and arrests reported since Labour came to power.

The reforms form part of a broader asylum overhaul, including making refugee status temporary with reviews every 30 months and potentially returning refugees to safe home countries, drawing criticism from Labour MPs.

The government plans to audit and tighten reporting to curb overcharging and improve transparency, claiming cost savings from reforms to asylum accommodation and transport contracts.

Officials say most disruptions are minor, but increased enforcement is disrupting smugglers and changing their tactics by raising risks.

Pilot programs are being considered to temporarily increase payments to incentivize return or deter illegal migration, including offers up to 3,000 pounds for some individuals with no right to remain who agree to go home.

The Home Secretary frames ending unrestricted taxi use as cutting wasteful contracts and hotel reliance, aiming to move asylum seekers to alternative accommodation and save hundreds of millions.