Number of homeless refugees housed by UK council surges 400 per cent as authority faces accusations of 'prioritising illegal migrants'

A Labour-run council has been accused of prioritising finding accommodation for migrants – amid a 400 per cent surge in homeless refugees living in the city.The City of Edinburgh Council suspended its social housing allocations policy in April last year in order to free homes up for those it has a 'statutory duty to accommodate', such as those presenting as emergency homeless.The council, which is run by a minority Labour administration, said this was to tackle the 'housing emergency' it declared in November 2023 amid a dwindling supply of social homes.But it has seen a 400 per cent surge in 'non-preventable homelessness' applications from migrants granted refugee status by the Home Office since April 2024. They now make up around 16 per cent of all households in temporary accommodation.It meant those waiting for a new council tenancy or a change to another home were pushed down the list so housing bosses could focus on emergency homelessness applications from those sleeping rough or fleeing violence.Under Scottish law, migrants with refugee status who have nowhere to stay after being released from their Home Office accommodation are entitled to emergency support in the same way as Scots.It also prioritised those with medical needs and families with children living in shared housing – whilst delaying everyday applicants such as those on lower incomes or living in an overcrowded council home.The number of households presenting as homeless has risen by about 15 per cent in the last year – from 3,455 to 3,969 – after remaining steady for three years, following the decision to prioritise homeless applications.The figures have sparked accusations from Reform UK that the council is 'prioritising illegal migrants'. The number of households presenting as homeless in Edinburgh has risen dramatically since the council paused its standard council house allocation policy last year Since suspending its standard council housing policy, Edinburgh has reviewed hundreds of applications from migrants given the right to remain, approving almost all of them. Between April 2025 and June 2026, the council received 722 applications for housing from asylum seekers, of whom all but 11 were assessed as homeless and in need of accommodation. As of last month, the city is housing 1,442 refugees, of whom 442 have connections with other parts of the UK such as work or family, compared with just 281 as of two years ago – a 413 per cent rise. Migrants now account for around 16 per cent of all temporary accommodation households in the city, up from around one per cent three years ago.However, the council now says it is in a position to resume its standard council housing scheme from October after building more than 1,400 new homes and buying over 800 others to serve as temporary accommodation.Scotland's rules on how to tackle homelessness have been increasingly liberalised over 20 years, largely driven by the SNP. Those assessed as homeless are meant to be placed in housing – including those who are granted asylum by the Home Office – after a blanket ban was placed on using B&Bs for more than seven days during lockdown.A 2003 Act under Scottish Labour banned B&B use for families and children save for in 'exceptional circumstances'. This was then bolstered in 2014 to limit such use to 14 days, then seven days in 2017, putting strain on social housing stock as homes had to be found.In 2012, a change in the law under Alex Salmond also saw a 'priority need' test ditched, putting single men on an equal footing with pregnant women if they were presenting as homeless. Then the need for a 'local connection' such as family or employment was ditched in 2022 – allowing people to present at the door of any Scottish local authority they liked and, critics say, opening the door to refugees from across the UK. Reform UK's deputy leader in Scotland, Thomas Kerr, has accused the council of 'prioritising' foreign nationalsThomas Kerr MSP, Reform UK's deputy leader in Scotland, said the council's tactics to reduce homelessness in the last year were 'unbelievable'.'Something has gone very wrong when our elected officials prioritise strangers and outsiders over vulnerable Scots in need,' he said.'Reform has endured slurs like fascist, racist and far-right because we predicted and cautioned against scenarios just like this.'Scotland simply doesn't have the capacity - or the money - to accommodate illegal migrants without leaving vulnerable Scots out in the cold.'The City of Edinburgh Council is standing by its decision to pause council house allocations, saying it helped move families out of unsuitable accommodation into a social tenancy. The authority has admitted in briefing papers that it is not currently adhering to all of its legal commitments on housing those who present as homeless.It is understood that many migrants presenting as homeless are not living in council houses, but in temporary setups such as hostels and, in extreme cases, bed and breakfasts – despite the government ban on the practice.When they are put in a form of council accommodation, they are done so temporarily until more suitable permanent accommodation becomes available. Their housing needs are separate from those who arrive in the UK and are awaiting a decision on their asylum status, whose accommodation is handled by the Home Office.Councillor Tim Pogson, Housing, Homelessness and Fair Work Convener, said on Wednesday: 'Everyone has the right to a safe and suitable place to call home. 'The pause on housing allocations has helped us prioritise those facing homelessness, while we work to increase the supply of temporary accommodation across the city.'A City of Edinburgh council spokesman said: 'We continue to monitor the different reasons households require temporary accommodation; it is important to recognise that there is not always an opportunity for the council to prevent instances of homelessness.'For example, households who have received a positive asylum decision, or who have a local connection elsewhere in Scotland, are categorised as non-preventable because there is no opportunity for the Council to intervene before they require our support.'Anyone who presents as homeless and is eligible, regardless of their background, will be assessed for placement in temporary accommodation in line with local and national guidance.'Despite these challenges, we continue to see progress against our emergency plan and remain focused on improving housing provision across the city.'