Source · Select Committees · Home Affairs Committee
Recommendation 6
6
Accepted
Home Office neglected oversight and assurance of asylum accommodation providers, over-reliant on self-reporting.
Conclusion
The Home Office has neglected the oversight and assurance of performance of providers delivering multi-billion pound contracts. The department has been over-reliant on self-reporting of performance by providers and failed to invest in the assurance capacity necessary to properly monitor performance. As a result, the Home Office has not been able to monitor effectively whether providers are delivering the standards required by the contracts. The department has strengthened its capacity more recently, and this increased resource is welcome, but we are still not convinced that the Home Office has sufficient oversight of the performance of contract providers to effectively hold them to account. (Conclusion, Paragraph 52)
Government response summary AI-generated
The government is devising and implementing a subcontractor assurance framework to identify and rectify issues within supply chains, ensuring providers conduct due diligence and strengthening supply-chain visibility for the Home Office. It also reported that 93% of identified excess profits have been returned.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
Over the past year, the Home Office has significantly strengthened its approach to assuring Key Performance Indicator (KPI) data and applying service credits where providers fail to meet contractual obligations. We have introduced a clear and transparent framework, supported by a dedicated Contract Assurance function and specialist analysts who validate provider data against multiple sources, including Migrant Help. Service credits are now applied consistently in line with contractual terms, except where allowable and appropriate mitigations are in place. This enhanced process enables intelligence-led inspections and assurance checks, ensuring accuracy, accountability, and robust compliance across all contractual arrangements. We have established a clear decision-making process for service credits, setting out criteria for when credits are applied in full, partially, or waived, ensuring consistency and accountability. Our inspection and assurance regime is risk-based and proportionate to contract value, combining scheduled and unannounced visits to higher-risk sites with lighter-touch oversight for lower-risk areas. These improvements are underpinned by enhanced governance, professionalised contract management, and upgraded management information systems. As a result of these reforms, the Department has recovered £74 million in the current financial year through profit-share repayments and service credits. We will continue to strengthen transparency and oversight and enhance our MI platforms to optimise assurance and inspection activity.
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