Andy Burnham has been urged to be “brave” and revive a £500m scheme allowing councils to buy housing for asylum seekers.

A group of 50 refugee charities have written to the new PM asking him to overhaul the “profiteering” asylum system, in a letter shared with The i Paper.

The system currently sees the Home Office hand billions of pounds to private firms to find and manage accommodation for people claiming asylum.

Some local authorities want to take on responsibility for their temporary accommodation – if they can be given funds to buy new homes or renovate empty ones.

Whitehall sources told The i Paper last month that a £500m asylum dispersal pilot – aimed at letting councils buy or refurbish properties – had been halted over concerns about cost.