The Home Office has launched a formal investigation into reports that government-issued payment cards for asylum seekers have been misused to fund gambling, following revelations that thousands of gambling-related transactions were attempted over the past year.
Data obtained by PoliticsHome through a Freedom of Information (FoI) request revealed that more than 6,500 gambling-related transactions were attempted using Aspen cards — prepaid debit cards provided to asylum seekers to cover basic needs while they await decisions on their asylum claims.
The Aspen card system, administered by the Home Office, is intended to allow users to purchase food, clothing, and other essentials. When asylum seekers first arrive, they are typically placed in fully catered hotel accommodation and receive £9.95 per week. This allowance increases to £49.18 per week for those moved to self-catered housing.
While online gambling transactions using Aspen cards were consistently blocked, the data showed that many cards were used at physical gambling venues, including casinos, slot machine arcades, and national lottery terminals. In some cases, cash withdrawals were made near gambling locations, indicating potential misuse of the system.
The number of attempted gambling transactions peaked at 227 in a single week last November, with the lowest recorded figure being 40 in a week in July 2024. With approximately 80,000 Aspen card users across the UK, the Home Office has said it maintains strict usage controls, but the current findings have prompted renewed scrutiny.
A Home Office spokesperson confirmed that an investigation is underway: “The Home Office has begun an investigation into the use of Aspen cards. If misuse is identified, urgent action will be taken. The department has a legal obligation to support asylum seekers and their dependants who would otherwise be destitute.”
The news has sparked political criticism. Conservative shadow Home Secretary Chris Philp condemned the misuse of public funds, stating: “It is clearly wrong for asylum seekers to be gambling using taxpayers’ money. This madness has to end.”
In response to the revelations, the BBC reports that the Home Office is expected to tighten controls on Aspen card usage to ensure that physical gambling venues are also blocked, much like online gambling platforms.
The controversy comes as wider concerns continue around welfare fraud, with government figures estimating that benefit fraud cost the UK £7.4 billion last year, equivalent to 2.8% of total welfare spending.