Billions Wasted on Migrant Hotels: Bombshell Report Reveals “Incompetent” Home Office Lets Private Firms Make “Excessive Profits”

The Home Office has “squandered” billions of pounds on asylum hotels, a damning report by MPs has found, blasting the department’s “incompetence” that has allowed private companies to make “excessive profits” from the crisis. The Mail has more.

There was “manifest failure” by the Home Office to “get a grip” of contracts with private companies it appointed to house asylum seekers, they concluded.

As a result, the firms had been allowed make “excessive profits” from the Channel crisis.

In one of the most damning reports ever published into the dysfunctional department, the MPs said the Home Office was “not up to this challenge” and demanded a series of major changes.

The Commons’ Home Affairs Select Committee said it was “inexplicable” the Home Office did not require accommodation providers to assess the impact on local areas before opening migrant hotels.

It had led to “some local services experiencing unsustainable pressures”, damaging community cohesion and allowing “misinformation and mistrust to grow”.

Committee Chair Dame Karen Bradley MP 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.”

She added: “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.”

In 2019 the Home Office signed 10-year contracts with the three companies to provide asylum accommodation across the UK.

Serco holds the contracts for the North West, Midlands and the East of England, Clearsprings operates in the South and Wales; and Mears covers Yorkshire and the Humber, the North East, Scotland and Northern Ireland.

The contracts were initially focused on providing self-catering flats and houses – termed “dispersal accommodation” by the Home Office – but expanded to hotels during the pandemic onwards amid a surge in Channel crossings.

The companies also operate large-scale accommodation centres on ex-military sites at Wethersfield, Essex, and Napier Barracks, in Folkestone, Kent.

At the time they were signed, it was estimated the contracts would cost the taxpayer £4.5 billion over a decade but officials now predict the final bill will be £15.3 billion.

According to latest figures the Home Office is supporting 103,000 migrants at the taxpayers’ expense including just over 32,000 in hotels.

Migrant hotels cost the taxpayer an average of £144.98 per person per night compared with just £23.25 for dispersal accommodation.

The report, published today, identified a catalogue of errors.

Worth reading in full.

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John Y
John Y
5 months ago

Incompetent? Or corrupt!

mickie
mickie
5 months ago
Reply to  John Y

Or both?

stewart
5 months ago

The activities of private enterprise are regulated by the market. If you do well, you are rewarded by your customers. If you do badly you lose customers, lose money and eventually go bust.

One could argue that politicians are regulated by elections. To a degree. In theory when they do well they are re-elected, when they do badly they are voted out. Except in our country there has been a duopoly in total collusion with each other, so there is no choice in effect. But at least there is a mechanism which in theory keeps them in check.

What exactly regulates the activity of unelected bureaucrats? Nothing. Literally nothing. They are self-appointed, self evaluated. There is nothing regulating the actions of these people and the result is clear. The country is run by them and they do what the hell they want.

That’s modern Britain.

Hound of Heaven
Hound of Heaven
5 months ago
Reply to  stewart

Your final paragraph sums up so much that is wrong, mainly because these people, and they are everywhere from Local Government to the Civil Service, have been allowed to come to believe that for them the law is optional. The British taxpayer can only stand by and despair.

JohnK
5 months ago
Reply to  stewart

Not necessarily nothing, if there are a handful of corrupt ones that don’t declare their interests, like shares in this or that contractor, e.g. On the other side, there were quite a few local residents that objected to the use of redundant military residential estates, along the lines of large numbers of immigrants taking over their areas.

Western Firebrand
Western Firebrand
5 months ago

So that’s just the cost of the contracts. There are additional costs, such as policing and translation, which are also borne by taxpayers.

These migrants must have access to sufficient funds to pay the ferrymen (twice over in the case of the “one in, one out” returnee), yet appear never to be asked to contribute towards the hospitality extended their way.

huxleypiggles
5 months ago

The Calais Yacht Club members are not paying for anything they are recruits.

The “gangs” are nothing less than government subbies and we are funding them.

huxleypiggles
5 months ago

Off-Topic

Netanyahu BANS the UK After Starmer’s ‘Betrayal of Allies’ Stuns the World
A diplomatic earthquake has shaken Britain’s standing on the world stage.
Prime Minister Keir Starmer’s Middle East policy — backing ICC arrest warrants and enforcing a total arms embargo on Israel — has ignited a historic breakdown between London and Jerusalem.

In retaliation, Benjamin Netanyahu has banned all UK officials from entering Israel, triggering the worst collapse in bilateral relations in decades.
Intelligence sharing has frozen, defense deals are unraveling, and Britain’s credibility among global allies is in free fall.

From MI5 leaks to Mossad shutdowns, this special report exposes the real-world fallout of Britain’s diplomatic gamble — the isolation now threatening national security, NATO unity, and the safety of Jewish communities at home.

This is the untold story of a superpower alliance shattered — and a nation flying blind.

sskinner
5 months ago
Reply to  huxleypiggles

Starmer is the worst leader in all of the UK’s and England’s history.

soundofreason
soundofreason
5 months ago
Reply to  huxleypiggles

Doesn’t seem to have hit the news. Maybe Netanyahu doesn’t have the necessary authority to push it through his government.

Marcus Aurelius knew
5 months ago

What, another grift, y’ say?

sskinner
5 months ago

It is also £billions because there are millions of migrants – it’s not just excessive profits from a few hundred migrants.

Pete Sutton
Pete Sutton
5 months ago

Governments – national and local – are either unwilling or unable to negotiate a commercial contract. Private companies know this and behave accordingly.

Hound of Heaven
Hound of Heaven
5 months ago
Reply to  Pete Sutton

Unable

DontPanic
DontPanic
5 months ago

Surely not beyond the realms of possibility that the corporates benefitting from migrants in their hotels are paying the smugglers to bring them. At 3000 pounds per illegal brought in that still leaves a margin of profit in the first year and bigger profit in subsequent years once the 3000 is recouped

Phil Warner
Phil Warner
5 months ago

Not that it was always deliberate Globalist/Communist tactics to destroy a society financially and socially before a Great Reset then.

ComradeSvelte
ComradeSvelte
5 months ago

Signed a 10 year contract in 2019!!! WTAF, so planned, and with 3 corporate contractors appointed, the whole shebang is by design and plan, note how France accommodates these unwanted boat scum, the whole issue could be resolved immediately, but too many pigs are feeding…..