Unfunded asylum costs must be met by council tax payers

By Carole Dennett Mar 10, 2026

The Isle of Wight Council spent more than £2.6 million on adult social care and children’s services for asylum seekers in 2024/25, with a growing share of that bill falling directly on local council taxpayers. Figures released by the TaxPayers’ Alliance last month were clarified by the council after detailed questions from the IW Observer.

While the £565,000 spent on adult asylum seekers under the UK Resettlement Scheme, Afghan Refugee Scheme and Homes for Ukraine was covered by government grants; the same cannot be said for the costs of asylum-seeking children. It is the shortfall in funding for this group – both under and over 18 – that now places a significant burden on the council’s budget.

In 2024/25, the council spent £2.1 million on social care and placements for these children. Government grants did not meet the full cost, leaving a £365,000 shortfall that had to be funded locally. Although overall spending is forecast to fall slightly to £1.95 million this year, the gap between costs and government funding is widening. The council expects a £548,000 shortfall in 2025/26, meaning more than half a million pounds must be found from Island council taxpayers in the coming year.

The council supports 21 asylum‑seeking children under 18, all aged between 11 and 17. Fifteen are with foster carers on the mainland, with the remainder in supported accommodation on the Island and the mainland. Their foster care costs average £1,087 per week each. These costs are far higher than for other fostered children. Despite our request, the council did not provide detailed current figures, but a previous Freedom of Information responses show standard fostering costs for the same age group at up to £400 per week in 2023, with the council now quoting a range of £291 to £618.

Nationally, asylum‑related social care spending has more than doubled since 2019/20, reaching £744 million in 2024/25. These figures cover only direct local authority spending and exclude healthcare and education as well as the far larger sums spent by the Home Office on hotels and other accommodation.

The TaxPayers’ Alliance says councils have little control over the number of asylum seekers they must support, and warns that government grants do not fully cover the costs, leaving local authorities to plug the gap – something the IW Council has now confirmed. The organisation argues that the figures underline the need for a clearer national funding system so local councils, already stuggling with massive debts, cutting services, and raising council tax and other charges, are not left carrying even more unfunded responsibilities.