Families whose asylum claims have been rejected could be offered payments of up to £40,000 to leave the United Kingdom under a new pilot scheme announced by Home Secretary Shabana Mahmood.
Under the plan, failed asylum seekers would be offered incentive payments of up to £10,000 per person, capped at four members per family. If the offer is refused within seven days, the government says it will pursue enforced removal.
The pilot is expected to target around 150 families currently living in taxpayer-funded accommodation. The Home Office estimates the programme could save around £20m if it successfully reduces long-term housing costs.
Mahmood said the government wanted to introduce an “increased incentive payment” to encourage voluntary departures, arguing it would represent a significant saving to taxpayers. She noted that housing a family of three in asylum accommodation can cost up to £158,000 per year.
The UK already operates a voluntary returns programme offering up to £3,000 in financial support for eligible migrants who choose to leave the country.
The proposal has drawn criticism from opposition parties and advocacy groups. Conservatives and Reform UK said the payments could encourage illegal migration, while refugee organisations warned that families would have little time to seek legal advice before making a major decision.
The Refugee and Migrant Children’s Consortium said the plan could risk leaving children homeless if families refuse the offer but lose access to accommodation and support.
The announcement forms part of a wider package of asylum reforms, including proposals to remove government support for asylum seekers who commit crimes or work illegally, and plans to limit accommodation to those considered genuinely in need.
According to official figures, there were 82,100 asylum applications in the UK in 2025, relating to around 100,600 individuals. Of those cases, 58% were refused. More than 107,000 people were receiving taxpayer-funded asylum support at the end of last year, including about 30,000 housed in hotels.
The government has pledged to phase out the use of hotels for asylum accommodation by 2029, moving people instead to lower-cost sites including former military bases.