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UK Government Pushes for Nationwide Dispersal of Asylum Seekers

8/15/2026, 11:57:16 AM

Nationwide Dispersal Plan Takes Shape

The Labour government aims to end asylum hotels, replacing them with houses in multiple occupation (HMOs) and “secure” sites such as former Ministry of Defence bases. New sites are being opened at former military locations, while existing hotels are slated for closure.

Background & Context

Under the previous Conservative administration, up to 400 hotels were used to accommodate asylum seekers, many in lower-income urban areas. Labour’s 2023 pledge to close these hotels has already reduced the stock to around 160, saving an estimated £1 billion. Burnham’s earlier record as Greater Manchester mayor included criticism of the dispersal system, claiming the north-west was bearing a disproportionate share of the burden.

Data & Statistics

  • End-March Home Office data show 97,519 people receiving asylum support.
  • 20,885 were in hotel accommodation; 72,768 were in other forms, primarily HMOs and community houses.
  • The north-west hosts the largest share (about 20 % of all supported asylum seekers).
  • Seventeen local authorities—including the Cotswolds, New Forest, Hart, Malvern Hills and Derby Dales—had zero asylum seekers in government accommodation.
  • Glasgow recorded the highest absolute number (? 4,000), while the north-east and north-west have the highest per-capita rates (? 25-26 per 10,000 residents).

Official Statements & Responses

Immigration Minister Anna Turley said the shift away from hotels is “about fairness” and that the government will not ask any community to take more than its fair share. A government spokesperson emphasized that the priority is to place asylum seekers in “secure, appropriate” accommodation and to “limit the impact on communities.”

Local Opposition & On-the-Ground Reports

Residents of Piddington, Oxfordshire have organised a symbolic independence referendum to protest a plan to house over 1,000 asylum seekers near the village.

In Derby, council leaders met on August 10 to discuss the future of two hotels still used for asylum accommodation. They expressed no timetable for returning the properties to public use and raised planning concerns about the sites becoming permanent “hostels.”

Criticism & Opposition

Reform Party councillors and some Labour MPs have warned that the push to place asylum seekers in middle-class areas will meet strong planning resistance, including the use of Article 4 orders to block new HMOs. Former UKIP leader Nigel Farage characterised Burnham’s approach as “cowardice” and argued that the policy would endanger communities rather than protect them.

Conflicting Reports & Gaps

  • The iNews report cites a 35 % reduction in asylum-seeker hotel placements over the past year and a 63 % drop from the 2023 peak, while the BBC notes the number of hotels fell from a historic peak of 400 to 160 under Labour. Both figures describe a decline but use different baselines, leaving the exact current hotel count unclear.
  • No specific timeline has been provided for the completion of the transition to former military sites, and the extent to which HMOs will be expanded remains dependent on pending decisions about rent caps and local planning powers.

What’s Next

The government has announced further closures of asylum hotels and plans to open additional former military sites, with two already operating and three more under consideration. Discussions continue over granting councils greater authority to refuse asylum-seeker HMOs, and the Home Office is reviewing the rent-cap policy that currently steers placements toward cheaper housing markets. No concrete dates have been set for the full rollout of the new dispersal model.