Blackburn with Darwen is set to welcome 380 more asylum seekers despite concerns about how they will be accommodated.
The borough's executive board approved the increase being demanded by the Home Office when it met on Thursday night and welcomed new government cash to support them,
The total housed in Blackburn and Darwen will double from from 370 to 750.
Asylum seekers are housed in the borough are part of a long-standing agreement between Blackburn with Darwen Council and Home Office.
They are looked after by private firm Serco and the council.
In 2012 the Home Office sought to increase the number to 700 but dropped the plan.
Cllr Phil Riley, borough leader told the executive board: "I don't think we have any choice about this.
"This is not a great outcome for everybody.
"It will put pressure on our public services.
"We do not have any asylum seekers in hotels as has been used elsewhere."
His Tory counterpart Cllr John Slater said: "We do have concerns about this including Serco.
"We don't know where they will be housed or what needs they may have."
Public health boss Cllr Damian Talbot says: "Our housing needs team have done a very good job with asylum seekers and will continue to work with Serco.
"For the first time we are getting some money for the government towards the costs.
"Up until 2022 we did not receive any financial assistance with the costs.
"This has now changed.
"£268,250 has already been received. Comprising of £93,250 retrospective grant, and £175,000 for additional ‘bed spaces’ already secured.
"An additional allocation of £217,000 is expected in quarter four of 2022. Further allocations will be made quarterly in line with the number of properties SERCO secure."
A Home Office spokesman said: “The number of people arriving in the UK who require accommodation has reached record levels and has put our asylum system under incredible strain.
"The use of hotels is unacceptable. We are working hard with local authorities to find appropriate accommodation.”
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