Select committee: Home Affairs Committee
Conclusion 3
4th Report – The Home Office's management of asylum accommodation
Published 27 Oct 2025
Addressed to Home Office
Home Affairs Committee Asylum accommodation All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We are persuaded by the evidence we have heard that, in the last Parliament, the Home Office focused on pursuing high-risk, poorly planned policy solutions and lost sight of the day-to-day work of effectively managing the asylum accommodation contracts. Failures of leadership at a senior level, shifting priorities, and political and operational pressure for quick results meant that the department was incapable of getting a grip of the situation, and allowed costs to spiral. The Home Office failed to undertake basic due diligence as it tried to respond to increased demand, most notably in the delivery of large sites, and has deprioritised the fundamentals of contract management. The Home Office was undoubtedly operating in an extremely challenging environment, but its chaotic response demonstrated that it was not up to this challenge. (Conclusion, Paragraph 42)
From: Home Affairs Committee, 4th Report – The Home Office's management of asylum accommodation (HC 580), 27 October 2025
Government response
The government responded to the whole report on 22 January 2026 (deadline 27 December 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government sets its response within its 'Restoring Order and Control' programme, committing to exit asylum hotels 'as soon as possible', while setting out some actions already taken and giving reasons where it does not agree with a recommendation.
- On hotels, the government says it will close them "as soon as possible, and by the end of this Parliament", noting use has fallen from over 400 at its peak to 197 as of 5 January 2026. It does not comment on the timing of individual closures.
- On contract management, it says it has strengthened capability and commissioned an independent review led by Mark Beaton, and reports recovering £74 million in profit share and service credits in the current financial year.
- It says the Home Office "will seek to introduce" a more rigorous profit-share methodology in future contracts, and that revised KPI amendments "will be finalised by February 2026".
- It does not agree to account for Contingency Accommodation directly in the National Allocation Plans, saying this would limit its ability to increase Dispersal Accommodation in areas that already host Contingency Accommodation.