Prime Minister Keir Starmer is confronting mounting pressure from within his own party to abandon controversial proposals that would allocate newly built council homes to asylum seekers. The growing rebellion threatens to force the Labour leader into yet another politically damaging policy reversal, highlighting significant divisions within the government over immigration and housing priorities.
Internal Criticism Mounts Over Housing Priorities
Approximately two hundred local authorities across England and Wales have expressed interest in participating in a pilot scheme that would provide funding for constructing new homes or refurbishing derelict properties specifically for asylum seekers. Notable councils involved include Brighton and Hove, Hackney, Peterborough, Thanet, and Powys. However, this initiative has sparked fierce criticism from Labour backbenchers who argue it unfairly prioritises the housing needs of asylum seekers over British citizens.
The controversy emerges against a backdrop of severe housing shortages, with official statistics revealing that 1.3 million families were languishing on social housing waiting lists last year alone. This figure represents a concerning three per cent increase compared to 2024, underscoring the acute pressure on affordable housing stock nationwide.
MPs Voice Constituency Concerns
Graham Stringer, Labour MP for Blackley and Middleton South, has been particularly vocal in his opposition, describing the plans as "unacceptable" given the existing "shortage of council housing that should be going to local people." He elaborated on his concerns, stating: "I've told the Home Office I'm against it and they need to U-turn on it in my seat... My problem is they won't become council houses for years and when you have... a waiting list of 10,000 people – they will feel asylum seekers will be prioritised."
Another Labour MP, speaking anonymously to avoid direct confrontation with party leadership, warned that the "bonkers" scheme "will go down awfully in Red Wall seats" – traditionally Labour constituencies in northern England where the party faces significant challenges from Reform UK.
Veteran Homelessness Analysis Adds Fuel to Fire
Compounding the political difficulties, analysis conducted by the Daily Mail has revealed that veterans are statistically more likely to experience homelessness in over half of the councils that have registered interest in the asylum housing scheme. Government figures indicate that Brighton and Hove, Thanet, and Peterborough – all Labour-controlled authorities – rank within the top ten per cent of councils in England and Wales for veteran homelessness rates.
Among these, Brighton recorded the highest proportion of rough sleeping veterans, followed by Peterborough and then Thanet. This revelation has provided additional ammunition to critics who argue that domestic priorities, including support for former military personnel, should take precedence over housing provisions for asylum seekers.
Broader Political and Financial Context
The housing scheme forms part of the government's broader strategy to reduce reliance on hotel accommodation for asylum seekers. The Home Office intends to begin evicting asylum seekers from hotels this spring, relocating them to barracks, houses in multiple occupation, or approximately nine hundred new homes expected under the pilot programme. Currently, thirty-six thousand asylum seekers reside in hotels, with around seventy-one thousand housed in dispersal accommodation within the private rented sector.
Jonathan Brash, Labour MP for Hartlepool, echoed the concerns of his colleagues, stating: "We have an acute shortage of council housing, with local families and key workers stuck on waiting lists or in temporary accommodation. Any programme to build new social homes should be focused first and foremost on meeting that local need."
Shadow Home Secretary Chris Philp seized upon the internal Labour discord, accusing the government of being "so weak... they put illegal immigrants ahead of our own citizens."
Government Response and Financial Implications
A government spokesman sought to clarify the situation, asserting: "New council housing will not be used by asylum seekers under any circumstances. This Government will close every asylum hotel. Work is well under way, with military sites brought forward to ease pressure on communities and cut asylum costs."
The financial burden of supporting migrants continues to weigh heavily on local authorities. Latest figures show councils spent nearly £750 million on social care for migrants last year, with costs having almost tripled over the past five years. Specifically, local authorities expended £134 million on social care for adult migrants in 2024-25 – a significant increase from £50.6 million five years prior, though down from a peak of almost £191 million in 2022-23.
When combined with the more than £2 billion spent annually on hotel accommodation and subsistence for asylum seekers, the total financial commitment to migrant support remains substantial, further intensifying the debate about resource allocation during a period of economic constraint.
