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Wednesday, February 25, 2026

“Report Exposes Government Failures in Billions-Wasted Asylum Hotel Contracts”

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A damning report has revealed that a series of significant failures during the Conservative government’s tenure resulted in taxpayers pouring billions of pounds into asylum hotels. The Home Office, plagued by leadership failures, struggled to cope with the increasing asylum backlog, leading to a chaotic response that allowed contractors to profit extensively as more hotels were utilized.

The Home Affairs Select Committee, comprising members from various political parties, criticized Boris Johnson, Liz Truss, and Rishi Sunak for their “manifest failure” in managing expensive asylum accommodation contracts. The report highlighted how the Home Office’s failures transformed hotels into a long-term fixture of the asylum system rather than a temporary solution.

Over the past six years, the Home Office oversaw a steep rise in the cost of asylum accommodation, with projected expenses soaring from £4.5 billion to £15.3 billion between 2019 and 2029. The report emphasized that contractors like Serco, Clearsprings, and Mears capitalized on the situation, prioritizing hotels over more suitable forms of accommodation to maximize profits.

Inefficient management of contracts and a lack of due diligence allowed providers to amass substantial profits without adequate oversight. The report criticized the government for neglecting to claw back tens of millions of pounds from contractors, despite profit-sharing clauses in the agreements.

Furthermore, the report highlighted the government’s failure to address safeguarding issues adequately, leading to vulnerable individuals being at risk. MPs expressed concerns about the substandard quality of accommodation provided to asylum seekers, emphasizing the misuse of taxpayers’ money on inadequate housing.

The committee urged the Home Office to prioritize closing down asylum hotels in remote areas and locations with heightened tensions. It called for a strategic plan to reduce reliance on hotels while maintaining a flexible accommodation system, emphasizing the need for accountability and transparency in managing asylum contracts.

Despite the government’s commitment to phase out asylum hotels by 2029, uncertainties remain about the closure process. The report emphasized the importance of honest communication from ministers to address challenges effectively and maintain public trust in the asylum accommodation system.

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