Glasgow is facing a mounting financial and social crisis as it houses four times more asylum seekers than the Home Office originally planned, with the city now shouldering the bulk of Scotland’s refugee accommodation burden. This disproportionate load is not only straining local services but also having a significant impact on Glasgow’s housing market and public finances, with projected costs for refugee housing set to reach £66 million by 2026/27.
The financial strain on Glasgow City Council is substantial, with homelessness services overspending by £27 million in 2024/25 and net costs of £14.6 million. The council’s latest forecasts indicate that costs could rise to £43 million in 2025/26 and £66 million in 2026/27 unless policy changes are made. This burden is exacerbated by Scotland’s broader homelessness laws, which require all unintentionally homeless people—including refugees—to be provided with permanent housing, unlike in England where support is restricted to those in “priority need”.
| Year | Projected Cost (Million GBP) | Homelessness Applications from Refugees (%) | Children in Temporary Accommodation (%) |
|---|---|---|---|
| 2024/25 | 43 | 44 | 60 |
| 2025/26 | 66 | 50 | 60 |
| 2026/27 | 66 | 50 | 60 |
The cost of temporary accommodation is high, with a single B&B placement costing around £30,000 per year and a furnished flat about £9,000. These expenses are diverting resources from other essential services and limiting the council’s ability to invest in long-term housing solutions.
Glasgow’s housing stock is under intense pressure, with 44% of homelessness applications now coming from refugee households and over half of all temporary accommodation placements occupied by refugee families. The city’s shelters and housing options are stretched thin, and move-on options are limited, further compounding the crisis.
The Home Office’s reliance on hotels and contingency accommodation has also driven up costs, with the expected expenditure on asylum accommodation contracts more than tripling from £4.5 billion to £15.3 billion between 2019 and 2029. This has led to criticism of the Home Office’s management of the asylum accommodation system, with MPs highlighting flawed contracts and insufficient oversight.
Glasgow City Council has called for urgent support from the Home Office, urging the government to provide immediate support to refugees after they are granted leave to remain, expand homelessness services across the UK, increase funding for housebuilding, and deliver on the 2022 pledge to expand dispersal accommodation across Scotland. Council leader Susan Aitken has described the current asylum system as “a machine that creates homeless refugees,” with the government then leaving local authorities to deal with the fallout.
The situation has also led to heightened community tensions, with protests outside hotels used to house asylum seekers and clashes between anti-immigration campaigners and anti-racism demonstrators. Despite these challenges, Glasgow continues to uphold its proud tradition of welcoming refugees and asylum seekers, recognising the significant contributions they make to the city’s cultural and economic life.
In summary, the disproportionate number of asylum seekers in Glasgow is creating a significant financial and social burden, with major implications for the city’s housing market, public finances, and community cohesion. Urgent policy changes and increased support from the Home Office are needed to address this growing crisis.
