Overview

• The National Audit Office (NAO) reports asylum accommodation costs from 2019–2029 have risen to £15.3 billion, over three times the initial £4.5 billion estimate.
• Hotels, housing 35% of asylum seekers, account for 76% of annual costs, with per-person nightly costs significantly higher than other accommodations.
• The Home Office has imposed only £4 million in penalties on contractors Clearsprings, Serco, and Mears for underperformance since 2019, despite rising costs and service quality concerns.
• MPs on the Commons’ Home Affairs Committee will question contractors next week about cost escalations, profit margins, and service standards.
• The Home Office claims to have increased decision-making capacity by 52%, removed 24,000 ineligible claimants, and forecasts £4 billion in savings by ending hotel reliance by 2026.