TAXPAYERS are on the hook for £15 billion over the next decade paying for asylum seekers’ accommodation.
The staggering bill is THREE times the amount originally forecast for the migrants’ stays, a damning report reveals.
Asylum accommodation bill has tripled from what was originally forecastThe number of people seeking asylum in government accommodation rose by 134 per cent between December 2019 and 2024 – rising from 47,000 to 110,000.
The dossier revealed that the cost was originally some £4.5 billion but Home Office contracts show it has tripled.
The revelation came as the National Audit Office published a briefing to support the House of Commons’ powerful Home Affairs Committee.
It stated: “The Home Office’s total spend on asylum accommodation is more than planned and it has few levers to control costs.”
The watchdog revealed that the huge cost was down to those arriving illegally by small boat and a rise in those claiming asylum who were previously detained under the last government’s immigration laws.
So far this year alone, 11,000 have made the perilous journey from France.
Those temporarily living in hotels accounted for 35% of all people in asylum accommodation and for about 76% of the annual cost of contracts – £1.3 billion of an estimated £1.7 billion in 2024-25.
Contractors Clearsprings Ready Homes, Serco and Mears will be quizzed about their role sourcing and managing asylum accommodation next Tuesday in front of the committee.
Reacting to the report, Home Affairs Committee chairwoman Dame Karen Bradley said: “Dealing with the cost of the asylum accommodation system remains a huge challenge for the Government.
“The NAO report reveals that the cost of these contracts is likely to be over three times what was envisaged when they were drawn up.”
Dame Karen added: “We want to see why costs have risen so dramatically, but will also be looking at the quality of support that is provided, and will be challenging providers on failures to meet key performance indicators in recent years.”
The watchdog’s report also said data from suppliers “suggests that hotels may be more profitable than other forms of accommodation”.
A Home Office spokesperson said: “As this report shows we inherited an asylum system in chaos with tens of thousands stuck in a backlog, claims not being processed and disastrous contracts that were wasting millions in taxpayer money.
“We’ve taken immediate action to fix it – increasing asylum decision-making by 52% and removing 24,000 people with no right to be here, meaning there are now fewer asylum hotels open than since the election.
“By restoring grip on the system and speeding up decision making we will end the use of hotels and are forecast to save the taxpayer £4 billion by the end of 2026.”
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