Overview

• Clearsprings Ready Homes has reported roughly £180–£187 million in profit since 2019, paid about £183 million in dividends to its parent, and is slated to receive around £7 billion over its 10‑year contract.
• Officials say audits identified five contracts breaching profit‑sharing thresholds and that excess profits are being returned to the Home Office.
• Ministers are reported to be considering renegotiation, early termination using break clauses from 2026, or shifting oversight of asylum accommodation back to local councils.
• The NAO reports hotels account for about 76% of spending while housing roughly 35% of people, supplier margins average around 7%, and reviews flagged £58 million in hotel charges lacking clear documentation.
• Residents and charities describe poor conditions in hotels; Clearsprings told MPs hotels can be more profitable and are harmful for residents, while investigators highlighted £16–£17 million in related‑party payments to a UAE firm owned by its founder.