LONDON (Web Desk) – Refugees granted protection in the United Kingdom may soon face a new financial hurdle before they can permanently settle in the country, with the British government proposing a repayment scheme that could require eligible asylum seekers to return about £10,000 in state support received during their asylum process.
The proposal, included in the government’s new Immigration and Asylum Bill to be debated in Parliament, would require successful asylum applicants who later become financially stable to repay part of the public funds spent on their accommodation and living expenses. Those who fail to pay the required amount could be denied indefinite leave to remain, commonly known as settled status.
The announcement marks one of the most significant changes to Britain’s asylum system in recent years and comes as Prime Minister Keir Starmer’s Labour government seeks to reduce the country’s soaring asylum costs, estimated at around £4 billion annually.
Home Secretary Shabana Mahmood defended the proposal, saying Britain has supported thousands of vulnerable people fleeing war and persecution, but those who later have the financial means should contribute towards the cost.
“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,” she said.
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According to the Home Office, the repayment amount is expected to average around £10,000, although ministers will retain the authority to adjust the figure through secondary legislation. Officials have not yet disclosed the income threshold that would trigger repayments or explained how the government intends to assess refugees’ ability to pay.
The policy is being compared to Britain’s student loan system, where repayments begin only after earnings exceed a specified threshold. However, unlike student loans, asylum recipients would reportedly need to clear the full repayment before qualifying for permanent settlement.
Rights organisations have strongly criticised the proposal, arguing that refugees are being asked to repay support they needed because they were legally prohibited from working while their asylum claims were under consideration.
The Refugee Council described the measure as an unfair financial burden on people who had already fled persecution, conflict and torture. The charity argued that asylum seekers depend on government support because Home Office rules generally prevent them from taking employment during the asylum process.
The Helen Bamber Foundation also criticised the proposal, calling it another punitive measure that does little to resolve the lengthy delays affecting Britain’s asylum system.
Migration experts have meanwhile questioned how much revenue the scheme would actually generate.
Research by the University of Oxford’s Migration Observatory indicates that fewer than 15% of refugees earn more than £20,000 five years after being granted asylum. Most remain on relatively low incomes, suggesting that only a limited number of people would qualify for repayments unless the government sets income thresholds below minimum wage levels.
Experts have also warned that linking settlement rights to repayment obligations could discourage some refugees from seeking employment or incentivise them to rely on alternative accommodation arrangements instead of government support.
Legislation could be particularly relevant for Pakistanis seeking protection in Britain
The proposed legislation could be particularly relevant for Pakistanis seeking protection in Britain, as Pakistan has remained among the countries whose nationals regularly submit asylum applications in the UK in recent years. While many applications are refused, those granted refugee status could eventually fall under the repayment scheme if they meet future income requirements.
Immigration advisers say the proposal does not change the legal criteria for obtaining asylum. Instead, it affects what happens after refugee status has been granted, specifically the pathway to permanent settlement.
For Pakistanis already living in Britain on work, study or family visas, the proposal has no direct impact, as it applies only to individuals receiving state-funded asylum support after seeking international protection.
Alongside the repayment scheme, the Immigration and Asylum Bill also proposes changes to age assessment procedures, reforms to modern slavery protections and new rules governing how Article 8 of the European Convention on Human Rights is applied in immigration and deportation cases.
The Home Office said detailed regulations, including income thresholds, repayment schedules and administrative arrangements, will be published separately if Parliament approves the legislation. Until then, many of the practical questions surrounding who will pay, when repayments will begin and how the system will operate remain unanswered.
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