UK Government refuses to let asylum seekers work despite economic cost

In a letter to Glasgow City Council leader Susan Aitken, Angela Eagle, Minister for Border Security and Asylum, confirmed that there were no immediate plans to change the current policy, which restricts asylum seekers from working unless they have been waiting more than 12 months for a decision—and even then, only in roles on the government’s Immigration Salary List.

Eagle wrote: “Whilst we keep all policies under review, there are no immediate plans to change the existing policy on permission to work for asylum seekers. It is important that our policy approach distinguishes between those who need protection and those seeking to work here who can apply for a work visa under the Immigration Rules.”

Her statement effectively shuts down calls for reform, despite warnings that the policy is forcing thousands of people into prolonged destitution while also costing the UK economy millions in lost tax revenue.

Glasgow is home to 95% of Scotland’s asylum seekers and has repeatedly urged the Home Office to reconsider its stance. Local leaders say many of those seeking sanctuary have professional skills and are eager to contribute but are instead trapped in years of enforced unemployment and relying on government support.

Robina Qureshi, CEO of the refugee and migrant homelessness charity Positive Action in Housing, said the government’s approach was economically self-defeating.

“The UK government wants to keep asylum seekers out of work and lose millions in taxes in the process,” she said. “Instead of recognising the professions and skills of people seeking asylum and assisting them into employment, they seem more interested in keeping them destitute for months or even years. This forces them into depending on the government, housed in guest houses and hotels at the taxpayer’s expense, instead of allowing them to stand on their own resources. This is the country’s loss, not just the individuals who seek sanctuary here.”

Charities and business groups have long argued that allowing asylum seekers to work would help address chronic labour shortages in industries such as social care, hospitality, and construction. Research from the Lift the Ban coalition estimates that the UK economy could gain hundreds of millions of pounds annually if people seeking asylum were given the right to work.

Instead, asylum seekers remain dependent on state support. Eagle also confirmed that the already meagre financial allowance for those in catered accommodation had been cut, reducing weekly support to just £8.86 to cover clothing, travel, and other essentials. Those in self-catered accommodation receive £49.18 per week.

The minister defended the changes, insisting that the Home Office was fulfilling its obligation to meet the “essential living needs” of destitute asylum seekers and that the level of support was reviewed annually.

However, for many, the reality is one of extreme hardship. Asylum seekers are barred from mainstream benefits and prohibited from working, leaving them dependent on charity handouts and local food banks. Campaigners argue that this policy not only dehumanises individuals but also imposes an unnecessary financial burden on the taxpayer.

The refusal to lift the work ban is part of a wider government strategy aimed at deterring people from seeking asylum in the UK. Ministers argue that making life in the UK less attractive will discourage future arrivals. However, human rights groups say this approach ignores the realities of forced migration, where people flee persecution and conflict, not economic hardship.

The policy also appears increasingly at odds with public opinion. A recent poll by YouGov found that 81% of people believe asylum seekers should be allowed to work if they have been waiting more than six months for a decision. Even among Conservative voters, a majority now support relaxing the restrictions.

Yet for now, the government remains unmoved. While other European countries allow asylum seekers to work within weeks or months of arrival, the UK continues to enforce some of the harshest restrictions in Europe. With asylum decisions taking years to process and the backlog reaching record levels, this means thousands of people remain trapped in poverty, unable to rebuild their lives or contribute to their new communities.

For those waiting in limbo, the impact is devastating. Campaigners say that being forced into idleness takes a serious toll on mental health, while long-term unemployment makes it harder for asylum seekers to integrate once they are granted refugee status.

Qureshi said the government’s policy was as short-sighted as it was cruel.

“Given the lengthy Home Office delays in deciding asylum claims, the UK government should at least allow people to work in order to build self-resilience and reduce reliance on the state, and crucially, disprove racist stereotypes that asylum seekers do not want to work when, in fact, they are forbidden. The route the government is taking is designed to keep people in enforced poverty, deepen prejudice and hostility, when they could be working, paying taxes, and contributing to society.”