The country saw record numbers of migrants come ashore last year after crossing the English Channel from northern Europe. They have been accommodated in hotels, with costs reaching 6 million pounds ($4.5 million) a day.
"More than 5,000 asylum seekers will be accommodated on vessels and in alternative sites to drive down the cost of expensive hotels," the Home Office said in a statement.
Around 3,700 migrants will be moved to Wethersfield and Scampton airfields starting this summer. A further 1,500 will be provided with bed spaces on three barges, with the first group of migrants moving onto a vessel in Portland Port in the next few weeks. The location of the other two vessels will be announced shortly.
The government will also end the practice of giving asylum seekers single hotel rooms. Room-sharing is expected to save UK taxpayers some 250 million pounds a year as it continues dealing with the backlog in asylum applications.