Source · Select Committees · Home Affairs Committee
Recommendation 5
5
Deferred
Institute systematic approach to enhancing Home Office commercial and contract management capability and accountability.
Recommendation
The Home Office should set out plans for enhancing and maintaining its commercial and contract management capability, to ensure that it has the skills and resources necessary to effectively manage the delivery of the contracts and control the costs of asylum accommodation. This essential capability should be embedded as a core function of the department’s operations, with clear accountability to prevent a decline in operational effectiveness over time. The Home Office should institute a consistent and systematic approach to the performance management of its officials and internal capabilities. Given these contracts will continue to cost vast sums of taxpayer money, the Home Office must ensure it acquires the capacity to manage them in a competent way. (Recommendation, Paragraph 44) 96 Oversight of provider performance
Government Response Summary
The government committed to finalising robust amendments to Key Performance Indicators (KPIs) for service providers by February 2026, and to incorporating enhanced KPI frameworks into future asylum accommodation contracts. However, this response did not detail plans for enhancing the Home Office's own commercial and contract management capability.
Government Response
Deferred
HM Government
Deferred
Changes to the KPI regime are being developed collaboratively with service providers, as any amendment to the KPI regime require mutual agreement. In light of lessons learned, the department has proposed robust amendments to the existing KPIs, which have been subsequently refined and will be finalised by February 2026. Future asylum accommodation contracts will incorporate enhanced KPI frameworks, building on lessons learned and including mechanisms to review and improve KPIs throughout the contract term. Oversight of Subcontractors