By Erestinah Jane | July 1, 2026
The United Kingdom government has unveiled plans requiring refugees granted asylum to repay the cost of government-funded accommodation and financial support once they secure employment, under sweeping reforms contained in the newly introduced Immigration and Asylum Bill.
The proposed legislation was presented to Parliament on Tuesday, June 30, 2026, as part of the government’s broader strategy to reduce public spending on the asylum system while encouraging greater financial independence among successful asylum applicants.
Under the proposal, adult refugees who receive asylum in the UK will be required to repay a flat-rate amount of approximately £10,000 (about KSh1.6 million), representing the estimated cost of accommodation and financial assistance provided during the processing of their asylum claims.
The government says the repayment obligation will become a condition for those seeking Indefinite Leave to Remain (ILR), meaning eligible refugees would need to settle the debt before qualifying for permanent residence in the UK.
According to the proposed framework, repayments will be based on an individual’s earnings, with deductions only beginning after refugees secure employment and their income exceeds a threshold that the Home Office is expected to announce later this year.
Officials said the repayment model is intended to function similarly to the UK’s student loan system, ensuring that contributions are affordable and linked to a person’s ability to pay.
The bill also includes safeguards for vulnerable groups.
The repayment requirement will not apply retrospectively to people who have already been granted asylum before the legislation takes effect, while dependent children will be exempt from accumulating any debt under the scheme.
The proposed law further states that refugees who voluntarily leave the UK before clearing the outstanding balance may be required to settle the debt before being allowed to re-enter the country in the future.
Home Secretary Shabana Mahmood defended the reforms, arguing that while the UK remains committed to protecting people fleeing persecution, those who later become financially stable should contribute towards the public
