Rising Costs Strain Local Authority Budgets
New financial analysis reveals local councils across Britain now spend nearly £134 million annually on social care for adult asylum seekers – a 165% real-terms increase compared to five years ago. The figures emerge as authorities prepare 2026-27 budgets amid growing concerns about unsustainable costs.
Regional Disparities in Expenditure
Data indicates extreme regional variations in spending, with Kent emerging as the highest-spending authority at £41.6 million for 2024-25. This represents a fourfold increase from the £9.9 million recorded in 2019-20. Hampshire followed with £23.9 million (up from zero) and Manchester at £23.2 million.
Children’s Care Costs Exceed £600 Million Annually
Separate figures show councils currently spend over £600 million yearly on social care for asylum-seeking children, including £322.6 million dedicated specifically to unaccompanied minors – a category that’s seen 32% growth since its introduction in 2022-23. Prior to that year, these costs were absorbed into general children’s services budgets.
Budgetary Pressures Mount
Financial experts warn the escalating costs represent a growing burden for municipalities already facing severe fiscal constraints. Total asylum-related social care expenditure reached £744 million in 2024-25, a 148% real-terms increase since 2019-20.
Breakdown of Council Responsibilities
Local authority support for asylum seekers differs from Home Office provisions, encompassing interpretation services, healthcare access assistance, legal advice, and housing support. For children entering care systems, councils bear full accommodation and placement costs.
Anne Strickland, a policy researcher, stated: “These ballooning costs represent another financial time bomb for local authorities. Taxpayers increasingly recognize they’ll ultimately foot the bill for systemic migration policy challenges.”
Concentration of Spending
Analysis shows spending heavily concentrates in certain regions, with the top ten councils accounting for 27% of total expenditure. Per-household costs vary dramatically from £400 in the City of London to £133 in Islington, against a national average of £34.
The figures emerge amid ongoing debates about asylum system reforms, with local authorities urging central government intervention to address unsustainable cost growth.
