Judges have told asylum minister Marjolein Faber to reinstate “bed and board” support for 28 failed asylum seekers in Amsterdam, in the latest setback for her plans to impose stricter rules.

Faber had promised to abolish funding for basic accommodation in five cities, including the capital, from January 1 this year, arguing that she was prioritising “repatriation rather than subsidised accommodation”.

But the district court in The Hague said the minister had not offered a suitable alternative for the 28 asylum seekers, all of whom were classed as vulnerable because of physical or psychological ill health.

All of them had been refused asylum and had no further opportunity to appeal, but the councils said they were at risk of becoming homeless and destitute without support.

Faber said they could apply for places in the secure facility at the refugee reception centre in Ter Apel, on condition that they agreed to co-operate with their removal from the country.

The judges said she had not examined whether there was space in Ter Apel for the asylum seekers or if “there are sufficient resources to tackle the medical issues that may be involved”. As a result, her decision exposed them to “a high risk of inhumane or humiliating treatment”.

Faber had hoped to save €24 million by removing support for the basic “bed, bread and bath” regime operated in Amsterdam, Rotterdam, Utrecht, Eindhoven and Groningen.

The court ruled she would have to find a solution for each person based on their individual circumstances. In the meantime the government will have to continue funding bed-and-board accommodation.