MPs accuse Home Office of wasting billions on asylum housing failings

The Home Office has squandered billions of pounds on asylum accommodation because of long-term mismanagement of a "failed, chaotic and expensive" system, according to a report published by a powerful parliamentary committee.

- Diane Taylor

The Commons cross-party home affairs committee report, published today, highlights the previous and current governments' failure to manage the mix of hotels, large sites such as Wethersfield, a former military base in Essex, and shared housing.

It also found the Home Office "incapable of getting a grip on the situation" and identifies "failures of leadership at senior level".

The report raises concerns about financial mismanagement of 10-year contracts with private providers, Clearsprings, Mears and Serco, which began in 2019, with the contract value rising from £4.5bn to £15.3bn. Failings went unnoticed and unaddressed because of inadequate oversight. Poor performance was not penalised and excess profits not reclaimed.

Despite hotels accounting for more than 75% of asylum-accommodation spending, no performance penalties were applied to asylum hotels, Napier barracks at Folkestone or Wethersfield. Mears has £13.8m to pay back to the Home Office under a profit-share agreement and Clearsprings £32m. But the Home Office says it needs to complete an audit first.