Failed Asylum Seeker Families Could Receive Up to £40,000

The UK government has announced a new trial scheme that could offer up to £40,000 to families of failed asylum seekers if they agree to leave the country voluntarily. The proposal was revealed by UK Home Secretary Shabana Mahmood as part of the government's broader plan to reduce the cost of housing asylum seekers.

Under the proposed scheme, families whose asylum applications have been rejected may receive financial incentives of up to £10,000 per person, with a maximum limit of four people per family. This means a family could receive as much as £40,000 if they choose to leave the UK voluntarily within seven days of receiving the offer.

Government Says Scheme Could Save Millions

According to the Home Office, the pilot programme will initially focus on around 150 families currently living in taxpayer-funded accommodation. Officials estimate the initiative could potentially save up to £20 million in public spending if successful.

Mahmood explained that housing asylum seekers is extremely expensive. She noted that providing accommodation for a family of three can cost the government up to £158,000 per year, making voluntary return incentives a more cost-effective solution for taxpayers.

The UK already runs a voluntary return programme, where migrants who decide to leave the country can receive financial assistance of up to £3,000. However, the new proposal would significantly increase that amount in order to encourage faster departures.

Possible Forced Removals

The Home Secretary warned that families who refuse the financial offer could face forced removal from the UK. The government is currently exploring ways to deport families with children who do not agree to return voluntarily, while ensuring the process remains “humane and effective.”

Mahmood also argued that failing to remove families in the past may have unintentionally encouraged some migrants to cross the English Channel with children.

Political Backlash and Criticism

The proposal has already sparked strong reactions from political opponents.

Senior Conservative politician Chris Philp described the payments as “an insult to British taxpayers.” Meanwhile, the party Reform UK criticised the plan, arguing that such large payments could act as a reward for people who enter the country illegally.

However, government officials defended the proposal, saying it is unlikely to encourage illegal migration. They pointed out that people smugglers reportedly charge between £15,000 and £35,000 per migrant, meaning the journey itself is already extremely expensive.

Concerns from Charities

Refugee support organisations have also raised concerns about the policy. The Refugee and Migrant Children's Consortium, which represents more than 100 groups, warned that families would only have one week to make a life-changing decision, often without enough time to seek proper legal advice.

Another charity, the Refugee Council, said cutting support for asylum seekers could lead to an increase in homelessness and rough sleeping, potentially shifting the burden to local councils and the NHS.

Rising Asylum Numbers

Government data shows that in 2025 there were 82,100 asylum applications in the UK, covering around 100,600 individuals. Approximately 58% of those applications were rejected.

Meanwhile, the number of voluntary returns reached 28,004 in the year to December 2025, marking a 5% increase compared to the previous year.

The government is also planning additional changes from June, which will restrict accommodation and financial support only to asylum seekers considered to genuinely need it. Those who break the law or work illegally could lose their government support entirely.