Housing: Asylum
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the answer of 5 August 2025 to Question HL9889 on Asylum: Housing, what the £500 million will be spent on; over what time period that funding is for; and whether it will involve a bidding process.
Answered by Matthew Pennycook
As allocated as part of the Spending Review, the government is investing £500 million in a new, more sustainable asylum accommodation model, developed in consultation with local authorities.
The model supported by this funding will be delivered by the Ministry of Housing, Communities and Local Government (MHCLG) in partnership with the Home Office and local authorities.
Its aim is to deliver better outcomes for communities and taxpayers by supporting local authorities to make available basic alternative accommodation that can be used on a temporary basis to house asylum seekers waiting for their cases to be processed. In the longer term, our intention is to ensure that the accommodation made available benefits local communities and reduces pressure on local housing markets.
We continue to engage with local government on the design of the model and will confirm the process for distributing funding in due course.
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