Home Office Launches Inquiry into Gambling Misuse of Asylum Seeker Payment Cards

The UK Home Office has initiated an urgent investigation following revelations that some asylum seekers may have been using government-issued payment cards—meant for basic living expenses—for gambling purposes.

Claims of Misuse Surface

The probe follows a Freedom of Information (FoI) request by PoliticsHome, which uncovered that over 6,500 gambling-related transactions were attempted by asylum seekers over the past year. These attempts were made using Aspen cards, prepaid debit cards issued by the Home Office to asylum seekers while their applications are processed. The cards are intended to cover essential costs such as food, toiletries, and transport.

Gambling Transactions Detected

The report revealed that, while online gambling attempts were automatically blocked by the card system, several successful in-person transactions occurred at locations like casinos, slot machine arcades, and lottery retailers. Additionally, cash withdrawals near gambling establishments were detected, tracked through terminal IDs—raising concerns that government-provided funds may have been indirectly used for gambling.

At one point, 227 gambling transaction attempts were recorded in a single week in November 2024. The lowest weekly number, 40, occurred in July 2024.

Government Response and Investigation

A Home Office spokesperson confirmed the department was now investigating the nature of the transactions. “If any misuse is identified, urgent action will be taken,” the spokesperson stated. “The Home Office has a legal obligation to support asylum seekers, including any dependants, who would otherwise be destitute.”

The spokesperson added that strict controls and limits are already in place, and the department is working on enhancing measures to prevent any future misuse, particularly at physical gambling locations.

What Are Aspen Cards?

Aspen cards are provided to approximately 80,000 asylum seekers across the UK. When asylum seekers arrive, they are typically placed in catered accommodation and receive £9.95 per week on their card. When they move to self-catered facilities, the weekly allowance increases to £49.18.

The card functions like a basic debit card but with restrictions meant to prevent spending on non-essential or harmful items, such as alcohol, tobacco, or gambling. Despite these safeguards, recent evidence suggests loopholes in the system are being exploited.

Political Backlash

The revelations have sparked political backlash, especially among critics of the government’s asylum policy. Conservative shadow home secretary Chris Philp condemned the situation, saying: “It is unacceptable for asylum seekers to gamble with taxpayers’ money. This madness has to end.”

His remarks reflect growing public scrutiny over how asylum support is administered and whether current policies are robust enough to prevent fraud or misuse.

Wider Context: Rising Benefit Fraud

This development comes amid broader concerns over welfare system integrity. According to recent data, benefit fraud cost the UK £7.4 billion last year—about 2.8% of total welfare expenditure. While Aspen card misuse constitutes a small fraction of that figure, it highlights vulnerabilities in targeted aid programs and the need for enhanced monitoring mechanisms.

FAQs

Q1: What is an Aspen card?
A: A prepaid debit card issued by the UK Home Office to asylum seekers to cover basic living costs while their claims are processed.

Q2: Can Aspen cards be used for gambling?
A: They are designed to block gambling transactions, especially online. However, some in-person transactions at physical gambling sites were successful.

Q3: How much money do asylum seekers receive?
A: £9.95 per week in catered accommodation and £49.18 per week in self-catered housing.

Q4: What is the Home Office doing about the misuse?
A: The department has launched an investigation and plans to introduce stricter measures to prevent gambling-related spending.

Q5: How widespread is this issue?
A: Over 6,500 gambling attempts were recorded in a year. The government is treating this as a serious concern but emphasizes it involves a fraction of total card users.