Mahmood will revoke the legal duty to provide asylum seekers with support, ending guaranteed housing and weekly pay.
Support would still be available for “those who are destitute” but will be withheld from those with permission to work who do not, and from people who break the law or defy removal directions.
Those who “have deliberately made themselves destitute” will also be denied support.
Under plans, asylum seekers with assets will be required to contribute to the cost of their accommodation. This echoes Denmark’s approach where asylum seekers must use savings to pay for their accommodation and authorities can seize assets at the border.
UK Home Office sources have ruled out confiscating sentimental items like wedding rings, but Home Office Minister Alex Norris has suggested that cars and e-bikes could be targeted.
The government has previously pledged to end the use of hotels to hold asylum seekers by 2029, which official figures show cost the government £5.77m per day last year.
The government is also consulting on plans to end the current system where families whose asylum claims have been refused continue receiving housing and financial support until their youngest child turns 18.
Ministers say the current system creates a “perverse incentive” to remain in the UK without status. Instead, families will be offered financial assistance to return voluntarily, but if they refuse, enforced removal will follow.
