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Last updated on August 13th, 2026 at 06:42 am
Long-term imbalance in UK asylum policy – as calls from Prime Minister Andy Burnham for a better distributed burden of housing to be shared have fallen largely on poorer areas for years. The change raises serious questions about the implications of having more asylum seeker accommodation spread out across the country for local jobs, wages and migrant workers already working and living around them.
Quick Facts on UK Asylum Policy
- The main concept: Do not allocate asylum seeker residences to poorer neighbourhoods but to wealthier ones.
- The reason for the protest: Protesters took to the streets following these plans, which aim to house 1,250 asylum seekers in a disused military barracks in Piddington, Oxfordshire (where the average house costs £583,750).
- Current figures: ~97,519 asylum seekers in asylum accommodation (~March 2026) Over 72,000 in dispersal accommodation
- Regional imbalance: There are ~25 supported asylum seekers per 10,000 people in the north-west, the highest rate in the country.
- Restrictions on work: Most asylum seekers are not legally allowed to work for 12 months after submitting their asylum application and only in more advanced work positions.
- Government aspiration: Replace expensive asylum hotels with flats in military sites and/or in the community.
Why Burnham Is Calling for Change
Asylum policy has been steering asylum seeker housing over the years towards lower-value areas, where affordable housing is available. Many wealthy local councils have none of the asylum-seekers supported, but cities such as Glasgow (3,870), Birmingham (2,142) and Liverpool (2,053) have a disproportionately high number of supported asylum-seekers.
Burnham has long voiced criticism about – as Mayor of Greater Manchester, the north-west had nearly a quarter of all asylum seekers across the country, and as PM. His message is well understood: it is a community’s responsibility, regardless of its financial resources, to do its bit.
How the System Works Now vs. What’s Changing
| Feature | Current System |
| Primary housing type | The institutions, such as HMOs, hotels, military sites, etc. |
| Who bears the load? | Predominantly poorer, northern areas |
| Hotel accommodation cost | £4.7bn in 2023–24 — being phased out |
| In total support for asylum (2026) | ~97,519 |
| Right to work | After 12 months, only the higher-skilled positions saw a growth in the number of applicants. |
| March 2026 change | Occupations considered a shortage were expanded to include other occupations. |
What This Actually Means for Jobs and Wages
The following is seldom taken into account in the debate: Asylum seekers are not allowed to work whilst their application is being considered. This means that the effect of the relocation of asylum seekers to rich regions on the local labour market is limited in the short term – they are not competing for most of the jobs.
Once claims have been settled, the picture changes. Recognised refugees are integrated into the open labour market, often in positions such as health care, hospitality, social care and administration where there is a shortage of labour. The evidence regarding wage suppression in various labour markets due to refugee resettlement is consistently weak. When it does come up, it is going to be regarding public services, not wages.
A more geographically widespread distribution of asylum seekers, across the UK, would help to alleviate pressure on already-overstretched areas such as Greater Manchester and Birmingham, where migrant workers are also highly dependent on local services.
The Bigger Question: Is This Good Immigration and Asylum Policy?
The thrust of Burnham’s argument is simple: It’s not fair and not sustainable to have the poorest communities in the UK responsible for the bulk of a national burden. The economic and practical logic of distributing asylum accommodation to places with better public services and real labour shortages. But the political opposition is not just imaginary — and it’s loud.
FAQs
Is it possible for asylum-seekers to find employment in the UK?
Typically NOT during the claim process. They can request to move up to more challenging positions after 12 months. A new list of eligible occupations was established from March 2026 and now includes more than just occupations in shortage.
Does there exist a ‘squeeze’ for asylum seekers and UK workers?
Mainly not pending claims. Although the refugees are granted refugee status, former asylum seekers are generally taken up into jobs that are already in short supply, not taking the place of other workers in those industries.
What causes the clustering of asylum seekers in poor areas?
Historically, the dispersal system has depended on the worst quality housing in the lowest income communities. Many councils now have no asylum seekers, as many of them are in better financial situations.
How is the wage level affected in affected areas when people relocate?
However, most studies suggest little direct effect of wage competition on wages in diverse labour markets. Pressure on public services is more of an issue than wage suppression.
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