Winter fuel savings wiped out by spiralling migrant housing costs

Telegraph

08-05-2025

The costs of migrant accommodation dwarfs the savings the Government will gain from cuts to winter fuel payments, official figures have shown.
Housing asylum seekers over the 10 years to 2029 will cost more than £15 billion, equivalent to more than £4 million a day and triple the Home Office's initial estimates, according to analysis by the National Audit Office (NAO), the spending watchdog.
This has been fuelled by a surge in asylum seekers in taxpayer-funded accommodation following record numbers of illegal migrants crossing the Channel. It is nine times the savings of £1.65 billion that the Government will make from cuts to the winter fuel payments.
The changes restricting the payments to those who qualify for pension credit and income-related benefits were introduced last year, with about nine million pensioners no longer qualifying for the top-ups.
According to analysis by The Telegraph, the money spent on migrant accommodation would cover winter fuel payments for 51 million pensioner households.
The data come as Sir Keir Starmer has come under mounting pressure from Labour MPs over immigration and cuts to winter fuel payments.
Jo White, the leader of the Red Wall Group comprising about 35 backbench Labour MPs, said that voters were 'angry' and cuts to winter fuel payments were 'the number one reason' why they were deserting Labour.
The MP for Bassetlaw said that Labour faced an 'existential threat' because Reform UK was 'vocalising the concerns that people in my constituency have' while Labour was 'not answering those concerns fast enough'.
The group is calling for a stronger message on immigration, with one member, Jonathan Hinder, the MP for Pendle and Clitheroe, saying that the issue is an 'existential threat' for Labour after the success of Nigel Farage's party at last week's local elections.
Mr Hinder suggested that Sir Keir should commit to effectively freezing migration by the end of the current parliament through a 'one in, one out' system.
Sir Keir has so far rejected calls to make any concessions on winter fuel payment cuts, but next week he will unveil his immigration white paper, which aims to make good on Labour's election manifesto commitment to reduce net migration from its current level of 728,000.
Reform's popularity has seemingly been boosted by issues such as net migration, which passed 900,000 under the Tories, the use of asylum hotels, also instigated by the Conservatives, and record levels of illegal Channel migrant crossings – at the expense of both Labour and the Tories.
The white paper is expected to herald two big legal changes to tackle the reliance of industry on cheaper foreign labour by forcing companies to ramp up training of British workers.
Bosses who break employment law – for example by failing to pay their staff the minimum wage – will be banned from hiring workers from abroad.
Training will also be linked to immigration, so sectors applying for foreign worker visas must first train Brits to do the jobs. Labour believes this will also help bring down the bloated benefits bill.
Yvette Cooper, the Home Secretary, is also proposing to revamp the graduate visa where foreign students can remain in the UK for up to two years after completing their studies without being required to work.
She is expected to demand that they will only be allowed to remain in the UK if they secure a graduate-level job, possibly within particular professions or with certain skills.
Under the plans being drawn up by ministers, all migrants will have to demonstrate they are fluent in English under tougher tests – and face waiting up to 10 years for permanent residency, rather than the current five years, if they fail the language checks.
Sir Keir has pledged to 'smash the gangs' behind illegal Channel migrants by giving Border Force, the National Crime Agency and police new counter-terror style powers and targeting the people smugglers' supply routes.
A Home Office spokesman said: 'As [the NAO] report shows we inherited an asylum system in chaos with tens of thousands stuck in a backlog, claims not being processed and disastrous contracts that were wasting millions in taxpayer money.
'We've taken immediate action to fix it – increasing asylum decision-making by 52 per cent and removing 24,000 people with no right to be here, meaning there are now fewer asylum hotels open than since the election.
'By restoring grip on the system and speeding up decision making we will end the use of hotels and are forecast to save the taxpayer £4 billion by the end of 2026.'