UK probes use of asylum seeker funds for gambling transactions on Aspen cards

The UK Home Office has initiated an investigation following reports that government-issued prepaid cards, meant to cover basic needs for asylum seekers, have been used for gambling-related transactions.

The inquiry comes after The Daily Mail revealed that thousands of transactions linked to amusement arcades and casinos were made using Aspen cards, which are designed to provide funds for essential items such as food and clothing.

Business and Trade Secretary Jonathan Reynolds confirmed that such usage violates existing policy.

“It’s already forbidden. It shouldn’t happen,” Reynolds said in response to the report. “Support for asylum seekers in the UK is, it’s not a lot of money, it’s about £7 a day, I think, for essentials. You shouldn’t be able to use it for this. So it’s very concerning. There’s an immediate investigation to find out exactly what has gone on here.”

Aspen cards are issued to asylum seekers awaiting the outcome of their claims. For those in self-catered accommodations, the weekly allowance loaded onto the cards is £49.18. Currently, about 80,000 cards are in circulation.

Figures released through Freedom of Information laws to PoliticsHome indicate that up to 6,537 individuals used Aspen cards at least once in the past year for gambling-related transactions. The Home Office has not disclosed how many of those transactions were completed successfully.

A Home Office spokesperson said it “has a legal obligation to support asylum seekers, including any dependents, who would otherwise be destitute,” and confirmed that an investigation has begun.

Reaction to the reported misuse came from both government and opposition lawmakers. Shadow Home Minister Chris Philp described the situation as “a complete abuse of taxpayers’ money” and called for immediate corrective measures.

Conservative MP Ben Obese-Jecty, who had raised the issue of Aspen cards directly with the Home Secretary and border security minister earlier this year, also reacted to the revelations.

“It is scandalous. I raised the issue of Aspen cards directly with both the Home Secretary and the border security minister earlier this year,” he said. “Their only concern was that ‘disclosure could undermine the ability of the Home Office to secure maximum value for money in future contract negotiations.’”

The Home Office initially stated that misuse was not possible, but later launched an investigation following the disclosures.