Question to the Home Office:

To ask the Secretary of State for the Home Department, what assessment has been made of the adequacy of levels of payments to local authorities outlined in the Funding instruction for local authorities: Asylum Dispersal Grant 2026-2027.

The Asylum Dispersal Grant supports local authorities with a contribution to the costs and pressures of accommodating asylum seekers across all eligible accommodation types in their area. The grant is not intended to meet full costs, but to provide a contribution towards costs incurred by councils, consistent with affordability, value for money and the Local Government Funding Doctrine.

The Home Office does not hold a single estimate of the total costs incurred by councils in delivering the services outlined in the Asylum Dispersal Grant Funding Instruction, as costs vary significantly by local authority. Each local authority is free to determine how best to utilise the funding but for monitoring and evaluation purposes must be able to demonstrate that they have fulfilled the eligibility conditions in supporting Asylum Seekers in their area.