The UK government has reclaimed £74 million from companies managing asylum accommodation, following a review initiated after the Labour Party took office last year. The Home Office reported this recovery amid criticism from Members of Parliament regarding the management of asylum contracts. However, this amount represents a small fraction of the total costs associated with asylum accommodation.
In the fiscal year 2024-25, the total expenditure on asylum accommodation is projected to reach £2.1 billion, equating to an average of around £5.77 million per day. The recovered sum falls short of the biweekly costs for accommodating asylum seekers. Accommodation providers have previously indicated to Parliament that they would return some of their profits to the government as per their contractual agreements. There has been a notable increase in costs to taxpayers since these contracts were originally established.
Dame Karen Bradley, chair of the home affairs select committee, acknowledged the recovery as a positive development but emphasized that it is only a fraction of the billions that these contracts entail. She urged the government to articulate a long-term strategy for an efficient asylum accommodation system. The government has committed to ending the use of asylum hotels before the next general election, with the Prime Minister expressing a desire to expedite this timeline.
The Home Office is also working on reducing immediate costs associated with various forms of accommodation, aiming for a decrease in spending compared to the previous fiscal year. Tactics include lowering nightly costs through methods such as room sharing and utilizing alternative accommodations, including military sites.
Home Secretary Shabana Mahmood stated that the government inherited inefficient asylum hotel contracts but has already achieved significant savings. Last month, the Home Office faced backlash from the home affairs committee, which critiqued its management of asylum accommodations and suggested that not enough measures were being taken to reclaim excess profits. Conservative Shadow Home Secretary Chris Philp emphasized that addressing the crisis necessitates completely phasing out the use of hotels for asylum seekers.
Source: https://www.bbc.com/news/articles/c709k1zx0ljo?at_medium=RSS&at_campaign=rss