Asylum seekers' cost to taxpayer is unknown, public auditor says

"The full cost of asylum to the British taxpayer is unknown as the government has not processed data on how much local authorities spend on migrants, the National Audit Office (NAO) has said. In a broad report mapping out asylum seekers' journeys through the UK's legal systems and support structures, public auditors found that there was "no single point of accountability" for the country's failed asylum system."

"Based on costs from the Home Office and MoJ on asylum, the NAO estimated total spending on asylum to come to £4.9bn in 2024-25, but the figure did not include other support costs incurred by local authorities. The bulk of the estimate came from contracts for asylum hotels. At the same time, an additional £2.8bn in expenditure went towards supporting unaccompanied children, providing legal aid to migrants, casework, and other dispersal accommodation."

The government has not processed data on how much local authorities spend on migrants, so the full cost to taxpayers is unknown. There is no single point of accountability for the asylum system. Frequent policy changes across departments, including the Home Office and the Ministry of Justice, have stalled asylum cases and a recent crackdown could increase homelessness. Home Office and MoJ costs put estimated asylum spending at £4.9bn for 2024-25, excluding local authority support, with an additional £2.8bn for unaccompanied children, legal aid, casework and dispersal accommodation. Councils often do not break down costs, making total expenses difficult to calculate and placing significant financial pressure on authorities to provide accommodation and support. Thousands of claims remain open for more than two years and data transparency is incomplete.

Read at City AM