They could only apply for homes in area they were dispersed, under secret Home Office idea
More than 40,000 refugees could be effectively forced to live in the North and Midlands under secret proposals being considered by the Home Office.

Housing Today understands that home secretary David Blunkett supports a proposed amendment to the Housing Bill stating that asylum seekers granted leave to remain could only apply for housing in the area to which they have been dispersed by the National Asylum Support Service.

The 44,500 refugees currently dispersed outside London and the South-east (see map, right) would be able to rent private homes anywhere if granted permission to stay, but would need to find their own deposits and rent.

The vast majority of new refugees are destitute and have no option but to turn to local authorities for housing.

The government is thought to be trying to keep the proposal under wraps until after the local elections on 10 June.

If introduced, it would allow the government to circumvent a High Court ruling earlier this year that refugees should be able to apply for aid anywhere (HT 13 February, page 9).

Critics claim it could breach people's human rights and lead to the creation of ghettos, particularly in areas of the West Midlands where most of the available social housing is on out-of-town estates.

However, London councils would welcome the move. The Greater London Authority estimates there are 350,000-420,000 refugees and asylum seekers in the capital. Many refugees want to live there because of its ethnic diversity and community facilities.

Merrick Cockell, the leader of Harrow council, which was involved in the High Court case earlier this year, said: "We'd welcome it. We contested the case because it had substantial financial implications for councils."

Some councils in low demand areas may also welcome the move as it would fill empty homes, but it is thought they would ask for funding to help with refugee integration.

One source who works in asylum policy said: "If the government is going to insist that people live in a certain area, they have a responsibility to ensure that the area has the resources to deal with them."

A spokesman for Glasgow council, one of the largest dispersal centres, said: "We welcome refugees but would be concerned about any element of compulsion."

A Home Office spokesman said: "All amendments to bills are tabled in parliament first and we are not prepared to speculate.

"The dispersal policy has been very successful to date and the principal benefit has been to ease pressure on housing and other services in London and the South-east."

The Housing Bill enters its second reading next week.