Home Office assessment flags possible destitution under asylum bill
A Home Office impact assessment for the Immigration and Asylum Bill, released in October 2026, says there is a risk that some people could face financial hardship or destitution, meaning having no money for basic needs. The risk is tied to repayments that could materially reduce a person's disposable income, the money left after essential costs.
The same document states that the changes may increase demand for homelessness services and rough sleeping support. It says this could add cost pressures for local authorities, the councils that run many local services.
According to The Guardian, published on 30 October 2026, Home Secretary Shabana Mahmood repeatedly declined to reveal the Home Office's assessment of how her migration and asylum changes could affect homelessness and community cohesion, meaning how well different groups get along in a area. The same report says that ministers in other departments were frustrated by the position.
The changes date back to November 2025, when Mahmood announced plans to end permanent leave to remain, which is the right to live in the UK indefinitely. They also include ending the government's duty to support people who would otherwise become destitute. Separately, the BBC reported in March 2026 that any asylum seeker granted refugee status in the UK would only be offered temporary protection, and in November 2025 it reported that more families with failed asylum claims would be removed from the country.
The push for details on the homelessness impact began with ministers under Keir Starmer. According to The Guardian, Ali McGovern and Miatta Fahnbulleh made the first requests, supported by then housing secretary Steve Reed. McGovern and Fahnbulleh later secured a meeting with Alex Norris, then a Home Office minister and now justice secretary. Fahnbulleh is now the energy secretary.
A Home Office spokesperson said asylum reforms had already saved taxpayers more than £1bn since the election. The spokesperson also said that ending asylum hotels, the hotels used to house asylum seekers, will not leave people homeless.
Home Office ministers are due to meet counterparts from other departments over the next few days to reach a compromise. The talks come amid warnings of a potential staff crisis in the care sector.
