Local councils across London have received an additional �11.6m from the Home Office for providing a range of services to asylum seekers. Many councils faced a �13.7m shortfall in 2005-06 trying to support families, adults and unaccompanied children.
Councillor Merrick Cockell, chairman of London Councils said the government understood the "special circumstances facing London's local authorities".
Councils fund many services including accommodation and social support.
Councillor Cockell said: "This deal will mean that our members can continue to offer their excellent services without being forced to increase council taxes."
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