Source · Select Committees · Public Accounts Committee

Recommendation 19

19 Not Addressed

Home Office fails to provide clarity on financial savings from asylum hotel room-sharing.

Conclusion
The Home Office explained that, as a way to limit the number of hotels it is using, it will accommodate more people in each hotel by increasing the amount of room-sharing.55 It told us that it had so far increased the number of beds available in hotels by a number “in the high hundreds” through room sharing, and that its providers were working with hotels so that more room sharing could be implemented.56 The Home Office told us that it was confident this could provide “several thousand” more beds.57 However, it said that it pays its providers by bed rather than per room and was very vague about how much money the increased room-sharing would save, and promised to come back to us to share the detail.58 The Home Office did write to us on 18 August 2023, but the letter provided little clarity as to how room sharing would result in savings and did not state how much money that the Home Office expects to save.59
Government Response Summary
The government disagrees with the committee's observation, reiterating its plan to reduce reliance on hotels by optimising existing use, increasing room sharing, and delivering alternative accommodation, stating it has begun closing over 50 hotels. It does not provide the specific savings figures requested by the committee.
Government Response Not Addressed
HM Government Not Addressed
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.