UK plans to end hotel use for asylum seekers, aiming to save £1 billion annually and overhaul the system.

The UK government plans to stop using hotels for asylum seekers by the end of this Parliament, aiming to save £1 billion annually. Chancellor Rachel Reeves announced a £200 million fund to overhaul the asylum system, aiming to reduce the backlog and handle more appeal cases. The cost of asylum accommodation is expected to exceed £15.3 billion over 10 years, which is more than three times higher than previous estimates. The government will explore alternative accommodations like medium-sized sites. Critics warn that transitioning away from hotels may be challenging.