Billions squandered on asylum accommodation by Home Office mismanagement

SCATHING HOME AFFAIRS COMMITTEE REPORT PUBLISHED

Flawed contract design and incompetent delivery left the Home Office unable to cope with the surge in demand for asylum accommodation, a report by the Home Affairs Committee has found.

Hotels went from a temporary stop-gap to the go-to solution for asylum accommodation, leading to a failed system that is expensive, unpopular with local communities and unsuitable for asylum seekers.  

As the cost of asylum accommodation contracts more than tripled, inadequate oversight meant failings went unnoticed and unaddressed. The Home Office failed to keep costs down and underutilised mechanisms to penalise providers for poor performance and reclaim excess profits.

No performance penalties are applied for poor performance at Napier, Wethersfield or asylum hotels, despite hotels accounting for over 75% of spending on asylum accommodation. 

Break clauses in 2026 and the end of the contracts in 2029 offer the Home Office an opportunity to end the failed system. However, without a clear long-term plan and the institutional capability to deliver a model that is more effective and offers value for money, past failures risk being repeated, the Committee warns. 

The Home Office’s approach has been a series of hasty, short-term responses. It must now learn from past failures and deliver a clear long-term strategy for asylum accommodation that provides value for money, adequate standards of accommodation and takes account of the impact on local communities.  

Chair of the Home Affairs Committee, Dame Karen Bradley said: “The Home Office has presided over a failing asylum accommodation system that has cost taxpayers billions of pounds.

“Its response to increasing demand has been rushed and chaotic, and the department has neglected the day-to-day management of these contracts. The Government needs to get a grip on the asylum accommodation system in order to bring costs down and hold providers to account for poor performance.  

“Urgent action is needed to lower the cost of asylum accommodation and address the concerns of local communities. While reducing hotel use is rightly a Government priority, there will always be a need for flexibility within the system, and the Home Office risks boxing itself in by making undeliverable promises to appeal to popular sentiment. It shouldn’t set itself up for more failure.   

“The Home Office has not proved able to develop a long term strategy for the delivery of asylum accommodation. It has instead focused on short term, reactive responses.

There is now an opportunity to draw a line under the current failed, chaotic and expensive system, but the Home Office must finally learn from its previous mistakes or it is doomed to repeat them.”

Tribunal system reforms to speed up asylum decisions

A new independent body will be set up to speed up decision making on asylum appeal cases

Asylum appeals will be overhauled and speeded up to clear the backlog, accelerate returns and end hotel use under some of the most significant changes to the asylum system in decades.

As part of efforts to fix the broken asylum system the government inherited and end the use of asylum hotels, a new independent body to deal with asylum appeals made up of independent professional adjudicators, will be established to hear cases more quickly.

The proposals, driven jointly by the Home Office and Ministry of Justice, will reduce the number of asylum appeal cases in the system by ensuring cases awaiting decision can be heard faster, in turn reducing the backlog and creating a more efficient system. They are driven by serious concerns among Ministers that existing measures including increased investment in court sitting days are not delivering the pace of change needed to clear the asylum appeal backlog.

The new body will be fully independent of government with safeguards to ensure high standards and is expected to use the expertise of independent professionally trained adjudicators focusing particularly on asylum appeals, and will allow capacity to be surged so cases can be cleared. It will have statutory powers to prioritise cases from those in asylum accommodation and foreign national offenders.

Currently, there is a backlog of 106,000 cases waiting to be heard by the First-Tier Tribunal, including at least 51,000 asylum appeals. Wait times are increasing, with an average wait time of 53 weeks.

As initial asylum decisions have accelerated, court delays over appeals are now the biggest cause of pressure in the asylum accommodation system which is costing the taxpayer billions of pounds each year.

Doubling of asylum decisions since the election means that the number of asylum seekers waiting for an initial decision has gone down 24% in the space of 12 months and is falling further. However, the number of failed asylum seekers now waiting in the appeal system has increased substantially as most failed asylum seekers then appeal and decisions even on a first appeal can take more than a year to be made.

To relieve pressure on the system, the government has provided funding to increase the number of sitting days in the First-tier Tribunal, with the aim of ensuring it operates at maximum capacity. However, the tribunal cannot keep up with fluctuating and increasing demand, so an alternative approach is needed that can provide wider and more flexible capacity.

Ministers are also introducing a new legal requirement for a 24-week timeframe for the First Tier Tribunal to determine asylum appeals by those receiving asylum accommodation support and appeals by foreign offenders.

But the current tribunal system is still failing to keep up with the particular requirements to clear the asylum system so that failed asylum seekers can be returned as swiftly as possible. Nor can it accommodate a fast track system for safe countries.

The government will set out further details of their plans to fast-track cases in the asylum system this autumn.

Lessons are also being learned from other European countries who have faster appeal systems including countries which run independent appeal bodies rather than absorbing appeals entirely into the main courts and judicial systems.

Home Secretary, Yvette Cooper MP, said: “We inherited an asylum system in complete chaos with a soaring backlog of asylum cases and a broken appeals system with   thousands of people in the system for years on end. That is why we are taking practical steps to fix the foundations and restore control and order to the system.

“We are determined to substantially reduce the number of people in the asylum system as part of our plan to end asylum hotels. Already since the election we have reduced the backlog of people waiting for initial decisions by 24% and increased failed asylum returns by 30%.

“But we cannot carry on with these completely unacceptable delays in appeals as a result of the system we have inherited which mean that failed asylum seekers stay in the system for years on end at huge cost to the taxpayer. Overhauling the appeals system so that it is swift, fair and independent, with high standards in place, is a central part of our Plan for Change.”

Since taking office, this government has taken immediate action to fix the asylum system to start exiting hotels and surging returns of more than 35,000 people with no right to be here, including more than 5,000 foreign national offenders.

At its peak under the last government over 400 asylum hotels were open in summer 2023, costing almost £9 million a day. There are now just over 200 and better use of the hotels of the ones we must use have helped cut asylum costs by 11%.

The government has surged asylum decision-making capacity, delivering over 31,000 initial decisions to people per quarter – triple the average under the previous government.

The case backlog is down 18%, with the number of people waiting decisions down by 24% and we’ve achieved the third-highest quarterly decision rate since records began in 2002.

The Immigration White Paper announced in May also details plans to introduce legislation that tightens the application of Article 8 of the European Convention on Human Rights on such appeals.

Asylum accommodation and Rwanda: Little to show for money spent so far, PAC report finds

Westminster’s Public Accounts Committee (PAC) has published its report scrutinising asylum accommodation and the UK-Rwanda Partnership.

The report finds that, despite the Home Office committing significant sums of money to the Rwanda partnership and its large accommodation sites, there is little to show for the money spent so far.

Questions also remain as to what will happen to the more than 50,000 people left in limbo by the system – people who are living in the UK, with no ability to claim asylum, who are officially “pending relocation”.

On asylum accommodation, the report welcomes Government’s progress in closing asylum hotels in communities.

However, the report finds the Home Office’s assessment of the requirements for setting up alternative accommodation in large sites fell woefully short of reality and risked wasting taxpayers’ money, while the new sites will not house anywhere near as many people as initially expected, exacerbating existing accommodation issues.