Migrants could be moved from hotels to disused ferries as part of Government plans to cut costs, according to reports.
More than 50,000 migrants are currently staying in hotels in the UK at a cost of around £7million a day.
However, Rishi Sunak will reportedly declare the “beginning of the end” of asylum hotels in the coming weeks.
According to The Daily Telegraph, migrants will be moved into “decent but rudimentary” accommodation in former military bases that will be used to house adult males. It also claimed that the Government may house more migrants in ferries to cut costs.
Golf courses, country houses and airport hotels are among hundreds across the UK being used to put up asylum seekers.
It comes after a report predicted that more than 150,000 people will be denied asylum over the next three years but not deported as a result of the Government’s Illegal Migration Bill.
The Refugee Council estimated that it would cost £9 billion over that period to detain arrivals and accommodate those who could not be removed. As many as 45,000 children will be locked up under the new legislation, it said.
Anyone who arrives in Britain illegally would be barred from claiming asylum under the bill, which places a duty on the home secretary to remove them from the country, either by returning them to their home country or removing them to a safe third country such as Rwanda.
The legislation will give the Home Office the power to detain people for at least 28 days. It is looking for detention sites to boost official capacity from 2,500, reducing the need to house tens of thousands in hotels.
A Home Office spokesperson said: "We have always been upfront about the unprecedented pressure being placed on our asylum system, brought about by a significant increase in dangerous and illegal journeys into the country.
“We continue to work across government and with local authorities to identify a range of accommodation options.
"The government remains committed to engaging with local authorities and key stakeholders as part of this process."