Overview

• Government audits found five contracts over profit‑sharing thresholds, with excess profits now being returned to the Home Office.
• Clearsprings’ reported profits since 2019 have reached about £187 million, and it has paid roughly £183 million in dividends to its parent company.
• The National Audit Office reports hotels house about 35% of asylum seekers yet account for roughly 76% of spending, with suppliers declaring average margins near 7%.
• Ministers are considering renegotiating or ending some deals and exploring a shift away from hotels, potentially returning oversight to local authorities or using alternative sites.
• Residents and charities describe poor living conditions in subcontracted hotels, citing inedible food, dirty rooms and shortages of basic supplies.