Select committee: Home Affairs Committee
Recommendation 33
4th Report – The Home Office's management of asylum accommodation
Published 27 Oct 2025
Addressed to Home Office
Home Affairs Committee Asylum accommodation All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The use of hotels for asylum accommodation was intended to be a short- term, contingency measure and consequently people in Contingency Accommodation do not “count” towards the Home Office’s plans for the distribution of asylum seekers across the country. In practice, there are Contingency hotels that have been open in some areas for years and may not close for some time, including hotels that were opened without even informing the local authority. Given the long-term use of many hotels, and the high proportion of asylum seekers currently accommodated in these hotels, the failure to join up the procurement of Dispersal and Contingency Accommodation is unfair on local authorities and unacceptable. The factors considered when setting targets for Dispersal Accommodation—such as homelessness pressures and arrivals on humanitarian schemes—should also be considered when deciding to open, or close, Contingency hotels. (Conclusion, Paragraph 140) 103
From: Home Affairs Committee, 4th Report – The Home Office's management of asylum accommodation (HC 580), 27 October 2025
Government response
The government responded to the whole report on 22 January 2026 (deadline 27 December 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government sets its response within its 'Restoring Order and Control' programme, committing to exit asylum hotels 'as soon as possible', while setting out some actions already taken and giving reasons where it does not agree with a recommendation.
- On hotels, the government says it will close them "as soon as possible, and by the end of this Parliament", noting use has fallen from over 400 at its peak to 197 as of 5 January 2026. It does not comment on the timing of individual closures.
- On contract management, it says it has strengthened capability and commissioned an independent review led by Mark Beaton, and reports recovering £74 million in profit share and service credits in the current financial year.
- It says the Home Office "will seek to introduce" a more rigorous profit-share methodology in future contracts, and that revised KPI amendments "will be finalised by February 2026".
- It does not agree to account for Contingency Accommodation directly in the National Allocation Plans, saying this would limit its ability to increase Dispersal Accommodation in areas that already host Contingency Accommodation.