The government will provide £150 million of capital investment in 2027-28 to fund additional large sites to accommodate asylum seekers, according to the Budget 2026 document published on GOV.UK. The document states that the funding is intended to facilitate the government's commitment to end the use of asylum hotels. The measure was announced in Chancellor John Healey's Budget on 28 October 2026; it is a funding pledge, not a change to asylum rules. This article is general information only, not personal immigration advice, and readers should check the official GOV.UK pages for current rules.

What has not been decided yet

The Budget document does not identify where the new sites will be, how many people they will accommodate, or when they are expected to open. Immigration law firm Vanessa Ganguin, summarising the Budget's immigration measures, likewise notes that locations, capacity and anticipated opening dates are not given in the document. Readers should therefore treat any claim naming a specific town or opening date for these sites as unconfirmed unless the government publishes it. The funding is also dated to 2027-28, so it is not money being spent on new sites in the current financial year.

Context: hotels and the wider plan

The government has repeatedly pledged to end the use of asylum hotels, and the Home Office has said its plan to close asylum hotels and move people into alternative accommodation, including former military sites, is saving taxpayers money. A Home Office spokesman quoted in Budget coverage said the government is closing every asylum hotel and has saved over £1 billion on asylum support since the election. The £150 million sits alongside that existing move away from hotels, rather than replacing it.

Sources: GOV.UK Budget 2026, The Times, Vanessa Ganguin.