Source · Select Committees · Home Affairs Committee
Recommendation 15
15
Deferred
Home Office significantly delayed recouping excess profits from asylum accommodation providers.
Conclusion
It is extremely disappointing that the Home Office only appears to have started the process for recouping excess profits from accommodation providers in 2024. Accommodation providers told us they had tens of millions waiting to be returned to the Home Office. This money should be supporting the delivery of public services, not sitting in the bank accounts of private businesses. (Conclusion, Paragraph 70)
Government response summary AI-generated
The government deflects the conclusion about its failure to recoup excess profits from accommodation providers by discussing its strategy for dispersal accommodation, national allocation plans, and exiting hotels.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
Each contract has a Profit Share clause, which obligates the provider to share details with the Home Office to establish whether the threshold for profit has been achieved. On conclusion of each contractual year, the Commercial Contract Management team will investigate retrospective data to establish value of return. As of 4 November 2025, the Home Office has been in receipt of profit share credit notes to the value of £45.9m from the providers. CRH has returned the full £33m. Mears has returned £12.9m and discussions are ongoing about a remaining £3.7m. There is no profit share due back from Serco. The outcome of the annual profit-share audit process, including confirmation of any excess profits recouped from providers, will be reported through the Department’s annual accounts This circular approach would limit our ability to ultimately procure the levels of Dispersal Accommodation required to exit contingency accommodation and in line with standard practice.
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