Source · Select Committees · Public Accounts Committee

Recommendation 16

16 Accepted

Home Office accommodation targets challenged by competition and wider housing crisis.

Conclusion
When we asked the Home Office why it was so far from achieving its accommodation targets, it told us that there is a “huge amount of pressure” for the type of accommodation it is trying to source.44 In written evidence, the Local Government Association (LGA) told us that providers sourcing accommodation for the Home Office compete with councils seeking accommodation for domestic families and people who have resettled in the UK or been granted asylum, which increases prices and distorts local markets.45 The Home Office acknowledged that it was “in similar parts of the market” to councils.46 The LGA told us that homelessness, low social housing stock and an unaffordable private rented sector are “creating a housing crisis”, and that this will make the government’s plans to house people waiting for an asylum decision across all local authorities challenging. The Home Office is planning to implement a ‘place-based approach’ and said it was seeking “to get into a position where [it has] a much closer and ongoing dialogue” with providers and local areas.47 It told us that it would have “meaningful discussions” with every local authority where there is concern about the changes that it is implementing.48
Government Response Summary
The government disagrees with the committee's 'recommendation' (misunderstanding item type) and outlines its implemented plan to reform the asylum accommodation estate by optimising hotel use, increasing room sharing, expanding dispersed accommodation, and delivering alternative sites, with over 50 hotels planned for closure by January 2024.
Government Response Accepted
HM Government Accepted
3.1 The government disagrees with the Committee’s recommendation. 3.2 The Home Office has always been clear that the use of hotels as temporary accommodation for asylum seekers was a short-term measure to ensure that the department met its statutory obligation to accommodate asylum seekers who would otherwise be destitute, during a period of unprecedented numbers of small boat arrivals. 3.3 In line with the Prime Minister’s comprehensive ten-point plan (13 December 2022) to tackle illegal migration, a clear plan and range of measures have been implemented to reform the management of the asylum accommodation estate. This includes optimising the use of existing hotels and increasing the number of people room sharing, growing the amount of dispersed accommodation available and delivering alternative forms of accommodation sites. As a result of these actions, the department has now begun to reduce reliance on hotel accommodation and has plans in place to close over 50 hotels before the end of January 2024. Whilst modelling asylum and accommodation demand is complex and inherently uncertain, the Home Office will continue to keep modelling assumptions and estimates under regular review to ensure that accommodation estate capacity remains sufficient for future levels of demand, under a range of different planning scenarios.