The controversial Bibby Stockholm is to close, the Home Office has announced.

It will not renew the contract for the barge, which is being used to house asylum seekers at Portland Port while their claims are processed, when it ends in January. 

As part of the Government’s plans to clear the backlog and bid to fix the asylum system, the minister for Border Security and Asylum has made the decision not to renew the contract for use of the Bibby Stockholm barge.  

Ending the use of the Bibby Stockholm, it says, forms part of the expected £7.7 billion of savings in asylum costs over the next 10 years, as the Home Secretary pledges to take action to 'restart asylum case working, clear the backlog and remove those with no right to be here.'

READ: Bibby Stockholm barge to go - live reaction

Extending the use of the Bibby Stockholm would have cost more than £20 million next year, it said. 

 The barge will continue to be used until January 2025, but there will be no continuation of the contract beyond that. 

Yesterday, the Home Secretary set out more detail on the Government’s plans to save billions of pounds by clearing the asylum backlog - where thousands remained permanently in taxpayer-funded accommodation.

By doing so, the government says it will reduce demand for accommodation like the Bibby Stockholm. 

The news comes after the newly-elected government began work on 'its mission to create a faster, fairer asylum system.'

It 'builds on action to fix the asylum system and protect our border,' it said, adding: 'The government has already begun rapid recruitment of a new Border Security Commander and committed a 50 per cent uplift in UK officers at Europol - to boost intelligence sharing, disrupt criminal people smugglers and bring them to justice. '

The Minister for Border Security and Asylum, Dame Angela Eagle MP said: 

“We are determined to restore order to the asylum system, so that it operates swiftly, firmly and fairly; and ensures the rules are properly enforced. 

“The Home Secretary has set out plans to start clearing the asylum backlog and making savings on accommodation which is running up vast bills for the taxpayer. 

“The Bibby Stockholm will continue to be in use until the contract expires in January 2025.”