Three-storey barge to house asylum seekers expected to be unveiled by UK government

The 93-metre vessel in Dorset can house up to 506 people

Migrants are taken in to Dover, Kent, on a Border Force vessel after being rescued from a small boat on the English Channel in February. PA

The Home Office is expected to announce details this week of the first barge to be used to house asylum seekers, under widely criticised plans aimed at reducing the reliance on hotels.

The government is set to reveal a leasing agreement to use the Bibby Stockholm “floatel” in Portland, Dorset, in what could start a new Tory dispute.

Use of boats is “totally and utterly out of the question”, and will exacerbate problems “tenfold”, said Conservative MP Richard Drax, who represents the area.

Details of any agreement with Bibby Marine in Liverpool and the costs were unclear, but the 93-metre vessel can house up to 506 people.

The three-storey barge has been refurbished since it was criticised as an “oppressive environment” when the Dutch government used it to house asylum seekers.

“The pressure on the asylum system has continued to grow and requires us to look at a range of accommodation options that offer better value for money for taxpayers than hotels," a Home Office spokeswoman said.

Plans to use two former military bases and a former prison were met with anger by local Conservatives when they were unveiled last week.

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A Conservative-run local authority launched legal action against the Home Office over the proposal to use RAF Scampton in Lincolnshire for up to 2,000 asylum seekers.

Immigration Minister Robert Jenrick announced the sites under plans to offer asylum seekers accommodation to cater to their “essential living needs and nothing more”.

The Home Office says new types of accommodation must be used to reduce a £6 million ($7.4m) daily bill for hotels.

South Dorset MP Mr Drax is yet to comment on the use of Portland to dock the barge, but he was among Conservatives who have criticised Mr Jenrick’s plans.

Enver Solomon, chief executive of the Refugee Council charity, has described military bases and boats as “wholly inadequate places” to house people who have fled war and persecution.