Select Committee · Public Accounts Committee

Asylum accommodation: Home Office acquisition of former HMP Northeye

Status: Closed Opened: 31 Oct 2024 Closed: 3 Apr 2025 1 recommendation 30 conclusions 1 report

The Home Office is responsible for asylum in the UK, as well as for supporting people seeking asylum by providing financial support and accommodation while it determines their asylum claim. The previous Government sought to reduce the use of hotels as accommodation by setting up sites including barges and disused military bases. The Home Office …

Reports

1 report
Title HC No. Published Items Response
7th Report - Asylum accommodation: Home Office acquisition … HC 361 5 Feb 2025 31 Responded

Recommendations & Conclusions

31 items
3 Recommendation 7th Report - Asylum accommodation: Home… Accepted

Set out staffing levels and plans for strengthening commercial capability within asylum accommodation team.

The Home Office failed to ensure it had sufficient capability to manage the commercial and property risks during its acquisition of the Northeye site. In 2023, the Home Office was acquiring several large asylum accommodation sites at the same time but lacked the in-house skills and capacity to effectively manage …

Government response. The government accepts the recommendation, detailing increased commercial and property capability within the Home Office's asylum accommodation team, including new senior appointments, an additional Commercial Specialist, and an increase of three professionally qualified resources since the Northeye acquisition. It also …
HM Treasury
6 Conclusion 7th Report - Asylum accommodation: Home…

Set out detailed plans for reducing asylum support spending and clearing the claims backlog.

We are concerned that the Home Office’s work to resolve the asylum backlog may increase costs elsewhere, such as for Local Authorities or the Ministry of Justice. The Home Office has a track record of poor engagement with local authorities, and some of the written evidence submitted to us illustrates …

HM Treasury
7 Conclusion 7th Report - Asylum accommodation: Home…

Home Office cited 'pace' and ministerial pressure for rapid Northeye acquisition.

When we asked the Home Office whether it had rushed its decision to acquire the Northeye site, the Home Office told us it was “operating at pace” to address the growing number of people claiming asylum. The Home Office said Ministers were “pushing” the department to progress quickly with this …

HM Treasury
8 Conclusion 7th Report - Asylum accommodation: Home…

Home Office spent millions on multiple abandoned or problematic large asylum sites.

In 2023, the Home Office was acquiring several large asylum accommodation sites at the same time, including the Bibby Stokholm vessel in Dorset and the former RAF base in Scampton, Lincolnshire.16 The Home Office has spent more than £34 million on the Bibby Stockholm vessel, which will be not be …

HM Treasury
9 Conclusion 7th Report - Asylum accommodation: Home…

Rwanda migration scheme cancelled after £715 million spent without removals.

In July 2024, the government announced the cancellation of the Migration and Economic Development Partnership with Rwanda (MEDP).21 We noted that nobody had been removed under the scheme, and the Department told us that there were no flights under the scheme other than for four voluntary 12 Q 4 13 …

HM Treasury
11 Conclusion 7th Report - Asylum accommodation: Home…

Home Office failed to fully action Northeye site survey recommendations on contamination and costs.

The Home Office commissioned some surveys but not a complete ‘Red Book’ survey and sought some additional professional advice on the state of the Northeye site before deciding to purchase it. Preliminary surveys of the site warned of potentially high remediation costs. For example, the planning appraisal, completed in February …

HM Treasury
13 Conclusion 7th Report - Asylum accommodation: Home…

Home Office bypassed standard valuation and approval processes for Northeye site acquisition.

Both the Ministry of Justice’s property function, which provided an outsourced property service to the Home Office, and the Home Office’s external property advisers recommended conducting a ‘Red Book’ valuation for the site, as typically required for a site requiring remediation. However, the Home Office negotiated the purchase of the …

HM Treasury
14 Conclusion 7th Report - Asylum accommodation: Home…

Home Office acquired Northeye site with incomplete information and insufficient contamination surveys.

The Home Office assessed the acquisition against the Accounting Officer tests, concluding that the proposal met the tests of regularity, propriety and feasibility, presented in the Accounting Officer Advice. The assessment also found that the use of the site for asylum accommodation represented value for money when compared with the …

HM Treasury
15 Conclusion 7th Report - Asylum accommodation: Home…

Home Office failed to complete a full business case for the Northeye site acquisition.

The Small Ministerial Group, established around November 2022, implemented concessions to the process of acquiring sites, including dispensing with the requirement for a full business case before approving acquisitions. The Home Office began drafting an outline business case for the acquisition of the Northeye site, dated 1 March 2023, but …

HM Treasury
16 Conclusion 7th Report - Asylum accommodation: Home…

Home Office made limited use of Ministry of Justice property expertise for Northeye acquisition.

Since 2016, the Home Office has had a shared-services agreement with the Ministry of Justice’s (MoJ’s) property function to provide a range of property services on behalf of the Home Office. For the Northeye acquisition, the Home Office made limited use of this arrangement, only engaging a firm through the …

HM Treasury
17 Conclusion 7th Report - Asylum accommodation: Home…

Home Office lacked oversight of contracted property staff, incurring additional Northeye costs.

In April 2021, the Home Office contracted staff who had previously worked under the Ministry of Justice’s property function to provide in-house expertise in commercial property transactions. From August 2022, the contracted staff managed the acquisition of the Home Office’s interests in the Northeye site.49 The National Audit Office reported …

HM Treasury
18 Conclusion 7th Report - Asylum accommodation: Home…

Ensure realistic market sale price for Northeye site if government decides to resell it.

The contract for the Northeye acquisition contained conditions that meant that the longer it took the Home Office to complete the purchase beyond a six–week timeframe, the more money it would pay. The National Audit Office reported that despite these terms being questioned by some of the Home Office’s advisers, …

HM Treasury
19 Conclusion 7th Report - Asylum accommodation: Home…

Home Office large asylum sites programme suffered poor value for money and significant failures.

In May 2024, the previous Public Accounts Committee reported on the Home Office’s development of alternative asylum accommodation to hotels, including large sites at Scampton and Wethersfield, the Bibby Stockholm vessel, and former student accommodation in Huddersfield. The Committee found that the Home Office’s value for money assessments of the …

HM Treasury
20 Conclusion 7th Report - Asylum accommodation: Home…

Home Office prioritised speed over assurance when acquiring large asylum accommodation sites.

We asked the Home Office why, despite spending large sums of public money on these large sites, many of them did not achieve the expected benefits. It explained that both the previous and current government had strategies to exit hotel accommodation for asylum seekers.63 The Home Office explained that the …

HM Treasury
21 Conclusion 7th Report - Asylum accommodation: Home…

Home Office culture normalised emergency operations, weakening approval processes for asylum accommodation sites.

We were concerned about a prevailing culture within the Home Office that normalises operating in an emergency and led it to weaken approval processes when acquiring large sites like Northeye. Moreover, it has often appeared that the Home Office has prioritised appearing to address the issue of asylum accommodation over …

HM Treasury
22 Conclusion 7th Report - Asylum accommodation: Home…

Home Office failed to adequately assess acquisition risks and costs for Northeye site.

When the Chief Secretary to the Treasury approved the acquisition of the Northeye site on 25 March 2023, he noted that the value-for-money case was marginal and based on assumptions that were highly uncertain.71 The cost of remediating the building of asbestos and removing contaminated ground estimated at £20 million …

HM Treasury
25 Conclusion 7th Report - Asylum accommodation: Home…

Home Office refuses to publish extensive lessons learned review from large site acquisitions.

When we questioned the Home Office about repeated mistakes in its acquisitions of large sites, it explained that it was learning from multiple projects at the same time. The Home Office informed us that its lessons learned review identified over 1,000 lessons. 82 When asked if it planned to publish …

HM Treasury
26 Conclusion 7th Report - Asylum accommodation: Home…

Home Office acknowledges its 'entrepreneurial' asylum site acquisition approach was flawed.

During our evidence session, the Home Office described its approach to acquiring large sites as “entrepreneurial”. It explained that this strategy was about piloting and testing approaches while operating at speed with limited information.90 The Home Office explained this as a good approach for identifying what works, quickly learning from …

HM Treasury
27 Conclusion 7th Report - Asylum accommodation: Home…

Home Office faces stretching cost-saving targets, possibly needing additional Treasury funding.

The Autumn Budget 2024 set a target for the Home Office to deliver significant savings by 2026.93 Moreover, following the cancelled Rwanda scheme, the current government has promised to resume processing asylum decisions for those previously considered as inadmissible. Under the former government, the Home Office was not processing cases …

HM Treasury
28 Conclusion 7th Report - Asylum accommodation: Home…

Home Office Border Security Command investment raises concerns about wider asylum system impact.

The Home Office explained it plans to reduce costs quickly, in part, by focusing on upstream measures, such as controlling irregular arrivals through the new Border Security Command. In our evidence session, the Home Office described the Border Security Command as the “start of a very long haul,” emphasising that …

HM Treasury
29 Conclusion 7th Report - Asylum accommodation: Home…

Home Office improved engagement with local authorities on asylum accommodation and move-on support.

Since 2020, the Home Office has increasingly used hotels to accommodate asylum seekers due to rising demand and a shortage of alternative accommodation. The previous Public Accounts Committee had raised concerns about the Home Office’s lack of effective engagement with local authorities regarding the impact of such accommodation on local …

HM Treasury
30 Conclusion 7th Report - Asylum accommodation: Home…

Home Office competition for accommodation exacerbates local authority homelessness costs and housing pressures.

The National Audit Office reported that the increase in asylum decisions had placed greater pressure on local authorities to support refugees in finding accommodation and increased the risk of homelessness and rough sleeping.107 The previous Public Accounts Committee also raised concerns about the Home Office paying higher rates for limited …

HM Treasury
31 Conclusion 7th Report - Asylum accommodation: Home…

Increased asylum refusals place acute pressure on immigration and asylum tribunal system.

People who are refused asylum by the Home Office can appeal the decision in the immigration and asylum tribunal, administered by HM Courts & Tribunals Service (HMCTS). The increased number of refusals brought about by more decisions being made is likely to increase the number of appeals. In June 2023, …

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
9 Dec 2024 Belinda Mather · Home Office, Joanna Rowland · Home Office, Sir Matthew Rycroft KCMG CBE · Home Office View ↗

Correspondence

5 letters
DateDirectionTitle
7 Apr 2025 To cttee Letter from the Second Permanent Secretary of the Home Office relating to Commi…
31 Mar 2025 To cttee Letter from the Permanent Secretary of the Home Office relating to PAC’s 07th R…
31 Mar 2025 To cttee Letter from the Permanent Secretary of the Home Office relating to the oral evi…
9 Dec 2024 To cttee Letter from the Permanent Secretary of the Home Office relating to the Home Off…
5 Dec 2024 From cttee Letter to the Permanent Secretary of the Home Office relating to the Committee’…