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There are 37,000 asylum seekers, including Afghan refugees staying in UK hotels at a cost of £4.7 million per day.
The Home Affairs Committee was told that 12,000 were those who had fled Afghanistan after the Taliban took over the country last August.
Home Secretary Priti Patel told the committee yesterday that the system of using hotels was inadequate but the Home Office was pursuing better ways with councils to find permanent homes.
.In terms of asylum seekers who would usually sail in small boats from France Ms Patel said: "There are 25,000 people in hotels at the moment.
"It is not something we want. We should not be housing people in hotels. There are a range of reasons as to why we are in this cycle.
" It's the culmination of a series circumstances that have led us because were have statutory duties and responsibilities to stop people becoming destitute."
She said there were efforts under way to use Ministry of Defence buildings for more asylum accommodation and creating reception centres.
Tricia Hayes. Home Office Second Permanent Secretary, told the committee homes had been found for 4,000 Afghan refugees so far and that 12,000 remained in "bridging accommodation."
She said her department had also been working with the Local Government Association and with councils to develop a new way of working on asylum schemes.
She said that 300 councils have already offered to help but more were wanted.
Ms Patel also told the committee that last year there were more than 51,000 attempted crossings of the Channel by asylum seekers. Of those more than 28,000 arrived in the UK and the rest were prevented by French authorities.
Since the meeting the Home Office has clarified that the daily hotel bill adds up to £4.7 million, which is £1.2 million for those resettled from Afghanistan £3.5 million for asylum seekers usually arriving from France.
Asylum seekers have at times been able to land directly on beaches on the Kent coast such as at Kingsdown near Deal and Dungeness.
But many are rescued at sea and first brought to Dover.
Instead of being processed at the port, as has happened for years, they are now being taken to a new centre at Manston for this.
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