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Fact check: Is the UK government spending a significant amount of money on hotels for illegal migrants

Checked on May 12, 2025

1. Summary of the results

The UK government is indeed spending substantial amounts on hotel accommodation for asylum seekers, with multiple sources confirming significant expenditure. The total projected costs have escalated from £4.5bn to £15.3bn over a 10-year period [1] [1]. Currently, daily costs are reported between £4-8 million [2] [3]. Per-person costs have increased dramatically by 141%, from £17,000 in 2019-20 to £41,000 in 2022-23 [4].

2. Missing context/alternative viewpoints

Several crucial contextual elements are missing from the original question:

  • Scale of the situation: The number of asylum seekers has more than doubled from 47,000 in December 2019 to 110,000 in December 2024 [1]
  • Hotel usage: Approximately 400 hotels are being used to house migrants [3], with hotels housing about one-third of all asylum seekers while consuming three-quarters of the accommodation budget [1]
  • Private sector profits: Companies like Serco, Mears, and Clearsprings have earned combined profits of £383m between September 2019 and August 2024 [1] [2]
  • Government response: The establishment of an Office for Value for Money (OVfM) shows recognition of the need to address these costs [4]

3. Potential misinformation/bias in the original statement

The original question's use of "illegal migrants" is potentially misleading as the sources refer to "asylum seekers" - people who are legally seeking refugee status. Several stakeholders benefit from different narratives around this issue:

  • Private contractors: Companies like Serco, Mears, and Clearsprings benefit financially from the current system, having made substantial profits [1]
  • Political interests: The government has acknowledged these as "unacceptable costs" and promised reductions [3], suggesting political pressure to address the issue
  • Media narrative: The focus on "illegal migrants" rather than "asylum seekers" can shape public perception of the issue and influence policy decisions

The government's establishment of the OVfM suggests recognition that the current system needs reform, regardless of the terminology used to describe those seeking asylum [4].

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