What does the pledge mean? 

Asylum seekers (people awaiting a decision on an asylum application) who are destitute can apply to receive support from the government, including accommodation. People who apply for asylum support are housed in initial accommodation while their application is considered, and if their application for asylum support is granted, they are placed in dispersal accommodation until a final decision is made on their asylum claim.

Due to an increased number of asylum seekers awaiting a decision on their application in the UK in recent years, the government has had to use ‘contingency’ asylum accommodation in order to meet its obligation to provide housing for those who require it. This has primarily involved the use of hotels, although some asylum seekers have been housed in other types of contingency accommodation, including the Bibby Stockholm barge and in former military barracks.

A report published by the National Audit Office in March 2024 found that the Home Office was forecast to spend £3.1 billion on asylum hotels in 2023/24—approximately two-thirds of its total spending on asylum support.

Labour did not originally set out a specific timeframe to achieve this pledge and the Home Office did not offer one when we asked. But in June 2025, chancellor Rachel Reeves confirmed the government intends to end “the costly use of hotels to house asylum seekers in this Parliament”.

The Home Office routinely publishes quarterly data showing the number of asylum seekers in hotels, but not the number of hotels in use or their associated costs. Given this, it’s unclear how the government intends to provide updates on progress towards this pledge (the Home Office did not provide any specific figures when we asked for an update in both November 2024 and June 2025).

What progress has been made?

We’re currently rating this pledge as “appears off track”, because according to the latest available data, both the number of hotels used to house asylum seekers and the number of asylum seekers housed in hotels have increased since Labour came into government in July 2024.

On 3 March 2025, Dame Angela Eagle MP, minister for border security and asylum, said that in July 2024, when Labour came into power, there were 213 hotels being used to house asylum seekers, and that had increased to 216 by March 2025.

Ms Eagle also said that seven hotels were due to close by April 2025, and in a later written response to an MP on this topic on 31 March 2025, she added that the number would be lower by the end of March 2025 than it was at the start of Labour’s term. However, she said the government does “not provide a running commentary on hotel numbers”.

We’ve not so far been able to confirm those hotels have now closed, as the minister suggested they would be. We have asked the Home Office for an updated figure on the number of asylum hotels in operation and will update this article if we receive a response.

At the end of June 2024, just before Labour came into office, a total of 29,585 asylum seekers were being housed in contingency accommodation in hotels (approximately 29% of all asylum seekers in receipt of support from the government at that time).

Data published on 22 May 2025 shows that figure stood at 32,345 by the end of March 2025 (approximately 30% of all those in receipt of support)—meaning the number of asylum seekers housed in hotels is approximately 9% higher than when Labour formed a government.

Questioned by MPs on the Home Affairs Committee in June 2025, Ms Eagle said the Home Office was exploring the use of “medium size” accommodation instead of hotels to house asylum seekers, such as “old student accommodation” or “old voided tower blocks”, saying it would be “cheaper to bring on board sites like that if you’re closing hotels”.

As part of the government’s Spending Review in June 2025, the chancellor assigned £200 million to the Home Office to “help end the costly use of asylum hotels in this Parliament and accelerate transformation of the asylum system by clearing the backlog, boosting appeals capacity and continuing to return those with no right to be here”.

The government estimates reforms to the asylum system will reduce asylum costs by “at least £1 billion per year by 2028‑29 compared with 2024-25”, although this is subject to “inherent uncertainty”.

The Home Office has not directly confirmed how much it estimates closing asylum hotels specifically will reduce overall asylum support costs by.