There are no current plans to directly fund local authorities that are dispersal areas. The Providers of accommodation will continue to contribute to Local Authority funds through the payment of council tax, which in FY17/18 contributed over £10m. In addition, the Ministry for Housing, Local Government and Communities has provided funding of £1.75m to Local Authorities in England, through the Controlling Migration Fund, for the provision of Local Authority Asylum Support Liaison Officers.
The Home Office are engaging closely with Local Authority Chief Executives on a continuous basis to assess the costs associated with being a dispersal area. As recently outlined in correspondence between Ministers and Local Authorities, it has been agreed that this joint review will be co-designed and co-produced by Local Authorities and the Home Office.