Source · Select Committees · Home Affairs Committee
Recommendation 13
13
Acknowledged
Home Office lacked adequate oversight of major asylum accommodation subcontracting arrangements.
Conclusion
Stay Belvedere Hotels Ltd was operating as a major subcontractor from 2019 onwards, but the Home Office only became aware of issues with the company within the last year. It was only after these issues came to light that the Home Office identified that Clearsprings had not been providing an appropriate level of information about their major subcontractors. We have seen no evidence that the Home Office has maintained adequate oversight of subcontracting arrangements. (Conclusion, Paragraph 64)
Government response summary AI-generated
The Home Office updated its Safeguarding Framework in August 2025 and established a new Safeguarding and Public Protection Programme. However, it states that specific contractual performance measures and wider auditing for subcontractors are outside the current scope of work and remain under review for future development.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The Home Office is committed to strengthening transparency and accountability across its asylum accommodation contracts. As a result, 93% of the excess profits identified by the auditors have been returned to the Home Office, with the validity of the remaining 7% still under discussion and negotiation is currently underway with the aim of swiftly agreeing the return of these remaining monies. To ensure subcontractors are regularly reviewed, a subcontractor assurance framework is being devised and implemented to identify and rectify any issues within supply chains. This will ensure Asylum Accommodation and Support Contract providers carry out adequate due diligence on their subcontractors. The framework will set out a consistent approach to subcontractor checks and controls and will strengthen supply-chain visibility for the Home Office. The Home Office publishes information about asylum accommodation contracts and related awards on Contract Finder, which provides public access to contract notices, award detail and associated documentation. We have written separately to the Committee as requested.
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