The cost of housing asylum seekers in Oxfordshire is likely to reach £6.1m this year.
But because Oxfordshire County Council has found them houses and flats, the Government will refund the money the county is spending on their accommodation.
Government officials will not refund councils who place refugees in more expensive accommodation such as hotels and bed-and-breakfast accommodation.
Currently, only 18 of the 1,048 asylum seekers in Oxfordshire are now in bed-and-breakfast accommodation.
The discovery of four illegal immigrants in a lorry at BMW's Cowley plant this week served as a reminder that asylum seekers are still arriving in Oxford.
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