The United Kingdom government will offer up to £40,000 (about ₹49 lakh) to families of failed asylum-seekers who agree to leave the country voluntarily under a new pilot programme announced by Home Secretary Shabana Mahmood.
Mahmood, who unveiled the proposal during an event organised by the Institute for Public Policy Research, said individuals whose asylum claims have been rejected would be offered £10,000 each, capped at £40,000 per family, if they choose to leave the UK voluntarily. Those who refuse could face forced removal, with children not exempt from deportation.
The trial scheme, inspired by a similar policy in Denmark, will initially target 150 families currently living in taxpayer-funded hotel accommodation. The families were notified and given seven days to decide whether to accept the payment or face enforced deportation.
Speaking at the event, Mahmood said the policy could significantly reduce the financial burden on taxpayers. “Today, keeping a family of three in asylum hotel accommodation costs £158,000 per year,” she said. “Should these incentives prove effective, they will represent a significant saving to the taxpayer.”
According to government figures, more than 100,000 people currently live in asylum accommodation funded by the state, including both applicants awaiting decisions and thousands whose claims have already been rejected. The UK spent around £4 billion last year on asylum housing.
Temporary refugee status and stricter rules
Mahmood also announced that refugee status in the UK would become temporary, with reviews every 2.5 years to determine whether protection is still required.
“If they don’t need it, they will be sent home,” she said, adding that asylum-seekers who commit crimes, work illegally or are able to support themselves financially could lose access to accommodation and financial support.
At the same time, the government plans to introduce new legal pathways for refugees to enter the UK, including student and work routes.
Political criticism
The proposal has drawn criticism from across the political spectrum. Zia Yusuf, shadow home secretary for Reform UK, said the country needed “mass deportations, not huge cash rewards for illegals.”
Meanwhile, Chris Philp, the shadow home secretary for the Conservative Party, argued that offering £40,000 to failed asylum-seekers could “reward and incentivise illegal immigration.”
Opposition has also emerged within the ruling Labour Party, with more than 100 Labour MPs reportedly criticising the plan as overly harsh.
The UK already operates a voluntary returns programme that offers up to £3,000 in financial assistance to asylum-seekers who choose to leave the country, but the new pilot scheme would significantly increase that amount.



