Select committee: Home Affairs Committee
Conclusion 37
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 ↗
Conclusion (the committee's words)
The Home Office has failed to properly consider the impacts of its approach to the delivery of asylum accommodation on local areas and to engage early with local partners to understand what these impacts might be. It is inexplicable that the Home Office has placed no obligation on providers to assess impacts on local areas. Failures to identify and mitigate impacts, compounded by the disproportionate distribution of accommodation, has led to some local services experiencing unsustainable pressures. This failure to recognise broader impacts can be seen in the pressures experienced by local authorities in areas where significant numbers of asylum seekers have received positive decisions and subsequently become homeless. These pressures have been exacerbated by inconsistent communication and inadequate data sharing, which has undermined the ability of local partners to respond effectively to the placement of asylum seekers in their area. (Conclusion, Paragraph 165)
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.