Shabana Mahmood is expected to announce changes to Britain’s asylum system on Monday in an attempt to quell rising fears about immigration.
The home secretary plans to amend laws that guarantee housing and financial support to asylum seekers who would otherwise be destitute.
The government said assistance will become “discretionary”, meaning it will be able to deny help to those who can work or have assets.
Mahmood has pitched the package of proposals as “the most sweeping reforms to tackle illegal migration in modern times”, designed to “restore control and fairness to the system”.
She added: “This country has a proud tradition of welcoming those fleeing danger, but our generosity is drawing illegal migrants across the Channel. The pace and scale of migration is placing immense pressure on communities.”
However, the majority of asylum seekers currently receiving support are unlikely to be affected. Government sources said rules that mean most asylum seekers are not allowed to have jobs will not change.
There are about 100,000 people in receipt of asylum support in the UK, the vast majority of whom are accommodated by the state. About a third remain in hotels, although Labour has pledged to end this practice by 2029.
About 8,500 people in asylum accommodation have the right to work because they entered the country on a visa and later claimed asylum.
Those without visas whose claims remain outstanding after a year through no fault of their own are sometimes permitted to take on paid work, but only in a limited number of fields where there is deemed to be a significant shortage of suitable candidates.
Although there are about 19,000 people who have been waiting for more than 12 months for an asylum decision, the Guardian understands most do not meet this criteria and not all of those eligible are in employment.
The government did not specify how much it expected to save as a result of these measures but it added that asylum seekers who break rules could also be excluded from financial support, which could further reduce costs.
A spokesperson said: “In a historic move, automatic handouts for those seeking refuge will end.
“Introduced in 2005 under EU law, the legal duty to provide asylum-seeker support has meant guaranteed, unconditional financial assistance for anyone who claims asylum and would otherwise be destitute.
“That is ending. Support will no longer be a given; it becomes a discretionary power.
“This means the Home Office can deny assistance to those who can work, have assets, fail to comply with removal directions, engage in criminality, disrupt accommodation settings, or work illegally.”
However, sources indicated these were not “blanket” rules and cases would continue to be assessed on an individual basis, with mitigating factors taken into account.
The changes are perceived as a pitch to Labour voters who are considering backing Reform at the next general election. The plans are thought to be unpopular with some of the party’s MPs, particularly those worried about losing support to the Greens and Liberal Democrats, although the government has indicated a rebellion is unlikely to be tolerated.
Government officials are also expected to launch a consultation on “additional requirements migrants could have to follow to receive and retain benefits” with those who “contribute and integrate” given priority.
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It is understood Mahmood will announce that those granted asylum could be returned to their home countries when they are considered safe, a policy modelled on the controversial Danish system.
Refugees are currently given protection for five years, after which they can apply for indefinite leave to remain, which offers a pathway to British citizenship.
According to the Sunday Times, the reforms will also include people arriving illegally having to wait 20 years before they can apply for permanent settlement.
The changes are expected to apply only to new arrivals.
A Home Office delegation travelled to Copenhagen earlier this year to study immigration reforms in the country, which have been overseen by the centre-left Social Democrats. The Danish overhaul is considered to have helped the party resist electoral challenges from the populist right.
After excluding data from 2020, when major travel restrictions were in place because of the pandemic, the number of successful asylum claims processed in Denmark is at a 40-year low.
Although those targeted by foreign regimes are normally given protection, the Danish government reserves the right to return refugees to their home countries when it is deemed safe.
Denmark also tightly controls which refugees can bring family members to the country. Those who live in housing estates earmarked as “parallel societies”, where more than half of the people are from “non-western” backgrounds, are not eligible.
The law also enables the state to demolish housing within these estates. Although the government says this is aimed at promoting integration, an EU official recently raised concerns about potential discrimination. The left of the British Labour party has been vocal in its criticisms of the Danish system.
Reform’s lead in the polls has been fuelled in part by a rise in small boat crossings over the last five years, a trend that successive governments have struggled to reverse.
The party has promised those who arrive in Britain via small boats would not be allowed to claim asylum if it took power.
