UK's 'Gold for Cost' Policy: A Shockwave for Desi Asylum Seekers

November 17, 2025 09:30 AM
UK's 'Gold for Cost' Policy: A Shockwave for Desi Asylum Seekers

The UK Home Office's sweeping new asylum policy, which includes plans to potentially seize non-sentimental valuables like gold jewellery from asylum seekers to cover processing costs, has sent shockwaves through the UK's large Indian, Pakistani, and Bangladeshi communities. For these communities, gold is not merely an accessory; it is a foundational, multigenerational store of wealth, investment, and cultural heritage, often representing a family's entire financial security.

Home Secretary Shabana Mahmood has defended the controversial changes as essential to counter "dark forces ... stirring up anger" over migration and has modelled them on Denmark's stringent asylum approach. However, a specific detail mentioned by Home Office Minister Alex Norris—that non-sentimental jewellery could be targeted—strikes a deeply personal and financial chord within the Desi diaspora.

Minister Norris confirmed that while "heirlooms" and wedding rings would be protected, assets such as cash, cars, e-bikes, and jewellery without sentimental value should be contributed by asylum seekers towards the substantial costs of their accommodation and living support, which currently amount to billions annually for the British taxpayer. When pressed on the specifics of seizing gold rings, Norris clarified that a "bag full of gold rings" would be treated differently than a wedding ring, suggesting a clear focus on easily liquefiable, high-value assets.

This policy detail is of particular concern to asylum seekers from South Asia, where wives and daughters traditionally hold a significant portion of family wealth in the form of gold jewellery. The practicality of safely hiding or securing such assets while in transit or within the UK asylum system is inherently difficult, raising fears that families could be stripped of their life savings and financial bedrock upon arrival.

The wider policy changes also include the regular review of refugee status every 30 months, making even families with children in UK schools liable for return if their home country is deemed safe. Additionally, countries refusing to take back deported nationals face potential diplomatic sanctions, including visa restrictions, with Angola, Namibia, and the Democratic Republic of the Congo being identified as possible targets.

While the Home Office argues these measures are necessary for financial fairness and system efficiency, Labour MP Tony Vaughan voiced strong opposition, warning that the temporary nature of the residency status would create a "perpetual limbo and alienation," preventing proper integration. Despite challenges to the policy's potential effectiveness, Minister Norris insists the measures are crucial to tackle the strains on the overall asylum system. The focus on seizing valuables, however, remains the most immediate and distressing element for South Asian asylum seekers for whom gold is synonymous with security.