4th Report – The Home Office's management of asylum accommodation

The government committed to introducing a more rigorous profit-share methodology in future asylum contracts, with work already underway to incorporate these provisions into upcoming procurements to reinforce accountability and drive sustainable commercial outcomes.

The government states that clear contractual obligations already require service providers to notify asylum seekers of moves with a minimum five-day notice, and these standards are monitored through departmental inspections and contract management meetings.

The government acknowledges Migrant Help's contractual obligations and monitoring, noting improvements in some KPIs, and states it is working closely with the provider while also reviewing performance frameworks and contract scope to ensure adequate service delivery.

The government accepts the recommendation to review the AIRE service, stating it is currently reviewing its structure, remit, performance frameworks, and contract scope, and examining alternative approaches as part of its future asylum contracts development.

The Home Office is committed to strengthening age dispute processes, including commissioning trials for AI technology to improve age assessment. They use safeguarding audits and contractual levers to monitor provider compliance with guidance and training requirements, and facilitate information sharing through daily travel lists and Secure Communications Forms.

The government accepted the recommendation, committing to improving communication with local communities, addressing legitimate concerns, and challenging misinformation. It outlined specific actions including developing clear messaging, strengthening engagement channels, and conducting trials with police forces.

The Home Office recognizes past failures and commits to exiting asylum hotels as soon as possible by progressing alternative accommodation, using sites like former military bases, and increasing Dispersal Accommodation, noting a significant reduction in hotel use already. They also commit to using lessons learned to design flexible, value-for-money contracts for future systems.

The government states it has significantly strengthened its approach to assuring Key Performance Indicator (KPI) data, applying service credits, and improving contract management oversight over the past year, recovering £74 million. It commits to continuing to strengthen transparency and oversight and enhance management information platforms.

The government is devising and implementing a subcontractor assurance framework to identify and rectify issues within supply chains, ensuring providers conduct due diligence and strengthening supply-chain visibility for the Home Office. It also reported that 93% of identified excess profits have been returned.

The government outlined the profit share mechanism in its contracts, reporting that £45.9 million has been received from providers to date, with a further £3.7 million under discussion. It states the outcome of the annual profit-share audit will be reported through the department's annual accounts.

The government states that service providers have a contractual obligation to provide at least five days' notice for accommodation moves, that processes are in place and reviewed, and Migrant Help offers 24/7 support.