ASYLUM seekers are still receiving money on taxpayer-funded credit cards even after being granted refugee status.

An investigation has been initiated after it was revealed that some migrants continue to receive financial aid, even though the regulations stipulate that these payments should cease once leave to remain is granted.

This adds more pressure on the Home Office, which is already under scrutiny regarding the ASPEN card program, following reports that numerous attempts were made to use the funds in gambling establishments.

One migrant posted in a Facebook group: “I was granted refugee status in January 2025. I’m still receiving funds on my ASPEN card… should I notify the Home Office, or will the payments automatically stop?”

Another user replied: “I know someone else this happened to. But he had payments for a whole year.

“He did not touch the money as the Home Office could ask you to refund if you are not entitled to this.”

Another admitted they are getting payments for dependants who have gone home.

When asylum seekers arrive in the UK, they are typically housed in fully catered hotels and receive £9.95 a week on their ASPEN card, rising to £49.18 a week if they are later moved to self-catered accommodation.

A Home Office spokesperson said: “The Home Office rules state that – when an individual ceases to qualify for support – their subsistence payments will automatically end, and their card will be cancelled, after a short transitional period.

“As part of our investigation into the functioning of Aspen cards, we will look into any instances where cards have not been cancelled as intended, and take whatever action is necessary to correct any faults.”

The Tories last night insisted it was “further evidence” Labour has “lost control of the immigration system”.

Shadow Home Secretary Chris Philp said: “We have seen luxury hotels provided for illegal immigrants, record ever numbers crossing the channel, rapes and sex offences being committed by asylum seekers, taxpayers’ money being used to fund gambling by illegal immigrants and now we find they can’t even switch the payment cards off when they should.

“This system has become a complete farce. No wonder it costs billions each year. It is an insult to taxpayers that illegal immigrants get better treatment than they do.”

Reform UK’s Richard Tice also let rip: “We keep being told that there is no waste in government yet it’s clear to see taxpayers are being taken for a ride by asylum seekers.

“The solution to this is simple. If you stop the boats, you stop the benefits and the enormous costs that are associated with illegal crossings. Only Reform will do this.”

The wider investigation into ASPEN card misuse began earlier this week, after a Freedom of Information request by PoliticsHome revealed more than 6,500 gambling-related transactions had been attempted by asylum seekers in the past year.

Although online gambling was blocked, migrants were able to use the cards in physical sites such as casinos, slot machine arcades and lottery retailers.

In some cases, they withdrew cash in or near gambling venues.

There are currently around 80,000 ASPEN card users in the UK.