There is £1.4 billion allocated to this scheme, apparently.
The reason that asylum seekers are still languishing in hotels, for months and years, is the the Home Office is incredibly inefficient and slow when it comes to processing their applications (and let's not forget that 82% of asylum applications are granted, so stop it with this nonsense about 'economic migrants' and 'illegals' and any other nasty fascist trope).
Additionally, the asylum seekers aren't permitted to work while waiting for their application to be processed. They have no option but to be depending on the meagre crumbs they are offered.
In view of this, it might be a better option to spend the £1.4 billion on the Home Office. Shaking up it's processes, better staff training, employing more staff etc.
But, as this government works on pandering to xenophobia and racism, because, sadly, there are lots of votes to be gained from xenophobes and racists, reforming the Home Office isn't going to happen.