Haringey Council has said it will face a £3 million shortfall this financial year unless the government increases its grants for asylum seekers living in the London borough.
Council leaders have met with ministers to ask them to provide part or all of the extra funding they say is required.
A council spokesperson said that under the National Assistance Act councils were required to support people who were refused asylum until they left the country and that it believed the government should meet this cost. They added that the council also felt that the £100 per week it was paid for looking after unaccompanied asylum seeking children was too low.
Meanwhile, the Home Office is investigating one of the companies it contracts with to house asylum seekers. It launched the investigation into United Property Management, which was chosen as a housing provider by the government in 2006, after receiving complaints. A spokesperson for the company refused to comment.
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