The devastating impact of Britain’s asylum crisis on communities across the country has been revealed by desperate local councils. Schools and housing markets have been overwhelmed by would-be refugees sent across the country.

It comes after the number of asylum seekers in expensive hotel accommodation rose to 38,079, despite Labour’s general election promise to “end asylum hotels”. The figure is up from 35,651 last September and 29,585 in June, before Labour came to power.

More than 28,000 people have reached the UK via small boats since Labour won the July 4 election. Since the start of the year 5,025 people have arrived this way – 24% more than had reached these shores by the same time last year.

Councils pleaded with the Home Office to work with them and complained that large numbers of people were being moved into areas without local authorities being warned.

They highlighted the damage caused to local economies by the use of hotels – but also warned that businesses employed by the Government to find homes for asylum seekers were snapping up rental properties at prices local residents could not afford.

Some authorities said they were battling to prevent a further outbreak of violence following riots last summer. The warnings came in a series of submissions to the House of Commons Home Affairs Committee, which is conducting an inquiry.

Home Office spending on asylum accommodation and support has shot up from £739million in 2019-20 to £4.7billion in 2023-4.

The Home Office has a policy of trying to ensure the number of asylum seekers in any area is no more than one for every 200 local residents, known as the “cluster limit”. But this is an average figure for the authority as a whole and the number could be much higher in specific wards leading to housing shortages and conflict, Middlesbrough Council warned.

It said: “Asylum accommodation is concentrated in a small number of wards, which are often those with the highest level of deprivation.”

The council said: “There also has not seemed to be a focus on cohesion issues in the town through the Home Office and its providers, which was also seen in the summer unrest.”

Durham County Council issued a similar warning, saying: “The rapid rate of property procurement in certain areas over the last two years has brought local challenges, with responses to property consultations from Police partners expressing concerns about the impact of clustering in some communities.”

It added: “In addition, the proliferation of Houses of Multiple Occupation, including conversion of former family homes to accommodate the asylum population, has been met with opposition in some areas.”

The Local Government Association said councils are trying to prevent a repeat of last year’s summer riots but need help. It told the inquiry: “Ongoing and expanded council funding for asylum seekers and ensuring advance engagement on accommodation procurement could effectively support local capacity to integrate asylum seekers, foster welcoming communities and reduce risks of violence.”

Schools are suffering according Essex County Council. It said: “We would note our concern at the placement of relatively large numbers of children, within contingency accommodation, this placed extreme pressure on school places in certain locations, particularly in the City of Chelmsford. It is undesirable for local authorities and schools to have to manage situations of so many children living in the same address.”

Eastbourne Borough Council the local economy had been hit by the use of hotels to house asylum seekers. “All four hotels were located within our designated tourism zone along the seafront which caused major issues with other hoteliers concerned about the impact on tourism and our planning and licensing departments.”

Coventry City Council said business Serco, which has a contract with the Home Office to house asylum seekers had been procuring properties and driving up rents so that local residents could not afford housing.

“Temporary accommodation numbers have more than doubled in Coventry over the last two years with the ability to secure private rented accommodation at affordable prices virtually impossible.”

Other authorities highlighting the impact on housing included Kent County Council, which warned: “Home Office contractor continues to procure properties in Kent, and this only exacerbates the issue of Local Authorities not being able to secure properties in the private rented sector, because they are unable to compete with the financial incentives offered. This is all in the context of a wider financial and housing affordability crisis with many of our own residents also requiring homelessness support.”

Tamworth borough council said: “Whilst it is understood that there is crisis, the perceived competition for private sector rented properties is adding to the housing crisis. This occurs especially in areas where the demand is for accommodation for young single men.”

Devon County Council said: “Hotels and dispersal accommodation has been stood up in unsuitable locations including where there is no natural community, no infrastructure or services. The rationale for choices has been unclear.”

Wolverhampton City Council said: “The current approach to asylum accommodation has significant impacts on local services, including housing, safeguarding, community cohesion, and resources.”

East Midlands Councils, which represents authorities across the region, said asylum seekers should be given lessons on how to behave. It said: “Due to the varying demographics of those seeking refugee arriving in the country which share differing cultural norms around such things as gender equality, protected social traits and race equity, there are instances where individuals have acted inappropriately within the standards of expected behaviour. There is reason to believe that more preventative action and education should be provided from the point of arrival.”

Halton Borough Council said: “We’re seeing increased elements of criminality and neighbour nuisance. Frustration and boredom from the community due to feeling isolated and the borough not offering enough to support both cultural and religious needs adding to poor physical and mental health.”

Brighton & Hove City Council said: “We have found the opening of asylum hotels in our area with little or no warning very challenging.

“There has been disproportionate pressure put on schools local to the hotel, particularly one secondary school that have all welcomed the children from the hotel.”

Wakefield Council warned: “The increased churn of asylum seekers, combined with the failure to travel, places a heavy burden on the local infrastructure. Housing demands are high, and support services like the Refugee Integration Team and our local voluntary sector are at capacity. With limited funding to support new refugees, all areas of support are struggling to maintain a consistent level of care.”

Greater Manchester Combined Authority warned: “The asylum system is one of the primary drivers of rough sleeping and statutory homelessness in Greater Manchester.”

And it said: “Greater Manchester proudly welcomes people seeking asylum and refugees to our city-region, but uncollaborative and inequitable approaches to procurement, combined with reliance on hyper-visible hotel sites has exacerbated community tensions and at times, threatened the safety of people seeking asylum.”

There is also a shortage of English lessons for new arrivals, it said.

“The current inequitable dispersal of people seeking asylum, along with underfunding of provision, has led to unmanageable demand for adult English language classes.”

Alp Mehmet of Migration Watch said: “The strain is felt by communities, local authorities and businesses around the country. It also costs the taxpayer eye-watering amounts.

“It is time the PM and his Home Secretary got real and admitted that their approach to tackling the problem is not only failing but making matters worse. If they’re serious about stopping the boats, they should reinstate the Rwanda scheme, and more like it, and pull out of the European Convention of Human Rights.”

Tim Naor Hilton, chief executive of Refugee Action, warned that the “way we house people seeking asylum is terrible for refugees and communities”, claiming it “brings profits worth hundreds of millions to Home Office contractors”.

He said: “The awful state of asylum accommodation is a symptom of a wider housing crisis created by the inability of governments to protect social housing that could be used for families, homeless, and people seeking asylum. Ministers must divert public money away from private profit, invest massively in social housing and other community assets, and let local authorities house people seeking asylum.”

Enver Solomon, chief executive of the Refugee Council, said: “We have always been against placing refugees in hotels. People find it hard to access the support services they need while living in a hotel.

“Asylum hotels can also cause tensions in the local community, such as the riots last summer where hotels were attacked. On top of that, they cost a fortune to the taxpayer.

“It would be much better to house people in stable, affordable housing within the community while they are waiting to have their asylum applications dealt with. People should be allowed to work and contribute to British life while they are waiting.

“At the same time, there’s a need to invest in local communities that are still healing from last summer’s appalling violence. The Government must listen to local councils to understand their concerns around supporting refugees in their local areas and councils must be supported to provide the services that meet the needs of everyone in their communities.”

A Home Office spokesman said: “This Government inherited an asylum system under unprecedented strain, with thousands stuck in a backlog without their claims processed. We remain firmly committed to ending the use of asylum hotels, minimising the impact on communities, and reducing the overall cost of asylum accommodation.

Most Popular Comments

“The amount paid out to take care of our boating friends must be colossal. Shame their care comes at the expense of many of our old age …” 96

“Round them all up. Send them all back. The Govt needs to turn off the benefits tap! …” 71

“Its gone too far and they know it, The government even tried to take over Camelot …” 54

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“We continue to work closely with local authorities to address any exceptional circumstances and ensure appropriate solutions are in place.”

The IPPR think tank raised concerns in its own submission to MPs.

It said: “The top-down nature of dispersal and accommodation placements, combined with short notice for local authorities and inadequate funding, has exacerbated existing challenges in housing, healthcare, and community cohesion.

“A key issue is the impact on housing shortages and homelessness services. Local authorities, already struggling with a lack of affordable housing, have faced increased demand for emergency accommodation. Without sufficient lead-in time or resources to expand local housing provision, councils are often left reacting to crises rather than planning effectively.

“Similarly, access to healthcare, including mental health support, has been poorly integrated into the asylum accommodation system. People seeking asylum – many of whom have experienced significant trauma – are often placed in locations where services are already stretched.”