Source · Select Committees · Home Affairs Committee
Recommendation 18
18
Deferred
Ensure future profit share clauses account for cash value of profits, not just margins.
Conclusion
The Home Office should ensure that profit share clauses in future contracts take account of not just profit margins but also the cash value of profits, so that contract providers cannot benefit so substantially from increased demand for and changes to the type and/or base costs of asylum accommodation. (Recommendation, Paragraph 73) Standards of accommodation and support Adequacy of accommodation
Government response summary AI-generated
The government deflects the recommendation to ensure future contracts include profit share clauses that account for the cash value of profits, by discussing its engagement with local authorities and communities regarding asylum accommodation and efforts to combat misinformation.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
The Home Office will seek to introduce a more rigorous profit-share methodology in future asylum contracts to ensure greater transparency and value for money. Work is already underway to incorporate such provisions into future procurements for asylum accommodation contracts. This approach will aim to deliver a more structured and equitable application of profitability, reinforce accountability and drive sustainable commercial outcomes. Large sites and former military barracks
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