UK to end use of controversial Bibby Stockholm migrant barge

LONDON (Reuters) -Britain's new Labour government will end the use of the controversial Bibby Stockholm barge to house migrants off the south coast of England as part of its overhaul of the asylum system, it said on Tuesday.

Use of the vessel, which can house up to 500 men, began under the Conservative government with the aim of cutting the 8 million pounds a day cost of hotel accommodation for asylum seekers while their claims are processed.

The Bibby Stockholm, anchored off Dorset, became a high-profile symbol of Britain's tough asylum policy under the Conservatives, with human rights campaigners comparing it to a prison ship and criticising its use as inhumane.

One man died on board last year and a separate water contamination issue forced the government to remove migrants for a number of weeks.

Britain's Home Office, or interior ministry, said use of the barge would end once its contract expires in January.

The move is part of Labour's efforts to overhaul Britain's asylum system by resuming the processing of claims for the tens of thousands of migrants it says were left in limbo and at risk of deportation under previous policy.

The new government has also scrapped the Conservatives' scheme to send to Rwanda any migrants who arrived illegally in Britain on small boats.

"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," Minister for Border Security and Asylum Angela Eagle said.

The Home Office said extending the use of the Bibby Stockholm would have cost more than 20 million pounds ($26 million) next year.

In total, changes to the asylum system would save taxpayers an estimated 7 billion pounds over the next 10 years, Home Secretary Yvette Cooper said on Monday.

($1 = 0.7744 pounds)

(Reporting by Sachin Ravikumar; editing by Sarah Young and Kylie MacLellan)