Conclusion 3

The Home Office does not have a credible plan for ending the use of hotels to accommodate people waiting for a decision and the unacceptable cost this creates. The Home Office spent £2.3 billion on hotels in 2022–23 to accommodate people waiting for their asylum decision. In April 2023, there were 48,000 people waiting for a decision while living in hotels. To reduce its reliance on hotels the Home Office has sought ‘dispersal accommodation’ in local areas. But while it initially hoped to find 500 new beds every week, it found, on average, just 48 new beds a week in the year to April 2023. The Home Office has struggled to procure larger scale accommodation and has now told us it is “maximising the use of hotels” by increasing the number of people who share hotel rooms, though it could not set out how much money this would save. We were surprised to hear that the Home Office is paying for in excess of 5,000 empty hotel beds as a ‘buffer’ in case its initial accommodation sites, such as Manston, cannot cope with the number of people arriving. The Home Office has told us that to plan effectively it needs to estimate future demands on the UK asylum system, and that it uses several ‘scenarios’ to model how many people will arrive in the UK. However, it told us that it does not have a date for when it expects to stop using hotels under these scenarios. Recommendation 3: The Home Office should, as part of its Treasury Minute response, set out how and by when it intends to reduce its use of hotels, and when it intends to stop using hotels altogether, under its different planning scenarios about the number of people applying for asylum.