The United Kingdom Government has unveiled plans to require some asylum seekers to repay up to £10,000 for the cost of state-funded accommodation and living support once they begin earning.

The proposal, announced by Home Secretary Shabana Mahmood, forms part of a wider Immigration and Asylum Bill aimed at reducing the financial burden of asylum support on taxpayers and tightening the country’s immigration system.

Under the plan, eligible adults who received government-funded accommodation and financial support while their asylum claims were being processed may be required to pay back part of the cost after they start earning above a set income threshold.

The repayment model is expected to operate in a manner similar to the student loan system, where deductions are made only when the person earns above a specified level.

The UK Government said the measure would apply only to adults who can afford to repay and would include protections to prevent destitution. Children will be exempt, and the policy will not apply retrospectively.

Reports indicate that asylum seekers affected by the policy may be required to settle the repayment before they can qualify for permanent settlement, also known as indefinite leave to remain, in the United Kingdom.

According to the government, the policy is intended to ensure that people who are later able to work contribute towards the public funds spent on their accommodation and basic support.

The Home Office has linked the proposal to the rising cost of asylum support, with government expenditure on accommodation and related assistance reportedly running into billions of pounds annually.

Mahmood said the government was determined to restore order and control to the asylum system while ensuring that the cost of supporting asylum seekers does not fall permanently on taxpayers where beneficiaries later have the means to contribute.

The measure is one of several immigration reforms being pursued by the UK Government amid growing political pressure over migration, asylum accommodation and the use of hotels to house asylum seekers.

The broader reform package is also expected to address asylum processing, returns, deportation of failed applicants, and the rules governing settlement in the UK.

However, the repayment proposal has attracted criticism from refugee and human rights groups, who described it as punitive and potentially harmful to people fleeing war, persecution and hardship.

Critics argue that many asylum seekers are not permitted to work while their claims are being processed and may struggle to repay such sums even after being granted protection.

They also warned that linking repayment to settlement could create further hardship for refugees who are trying to rebuild their lives in the UK.

Migration experts have also raised concerns that the policy could discourage recognised refugees from taking up work or using public accommodation, depending on how the repayment rules are implemented.

The government has, however, maintained that the scheme will be means-tested and will not be imposed on those who cannot afford to pay.

Further details, including the exact income threshold, repayment structure, enforcement mechanism and how the policy will interact with immigration status, are expected to be set out as the bill progresses.

The proposal marks a significant shift in the UK’s asylum support policy, moving from state-funded support during the asylum process to a system where some beneficiaries may later be required to reimburse the government.

If approved, the policy will affect asylum seekers who receive public accommodation and support, later gain the right to work, and earn enough to fall within the repayment bracket.

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