“`html
An investigation by the BBC has revealed that the government has recovered £74 million from asylum accommodation providers, deemed to be excessive profits.
According to the Home Office, the funds were recouped following a review of contracts initiated after the Labour Party assumed power last year.
The ministry had previously faced criticism from members of parliament regarding the oversight of these contracts.
However, the recovered amount represents a relatively small fraction of the total expenditure on asylum accommodation.
Home Office data indicates that the overall cost for the fiscal year 2024/25 was £2.1 billion, averaging approximately £5.77 million per day.
Therefore, the recouped sum is less than the government’s bi-weekly expenditure on accommodation.
Accommodation providers had previously indicated to parliament their intention to return a portion of profits to the government, as stipulated in their contracts.
The cost of these contracts to taxpayers has increased significantly since their inception.
Dame Karen Bradley, the Conservative chair of the home affairs select committee, described the recovery as “welcome” but emphasized that it is only a “first step”.
She stated, “This is only a small part of the many billions that the contracts have and will cost.”
“The government must now set out its long term plan for how it will deliver a resilient and cost effective asylum accommodation system.”
Government ministers have pledged to eliminate the use of hotels for asylum accommodation before the next general election, with the Prime Minister expressing a desire to expedite this timeline.
The Home Office has also been working to reduce the immediate costs associated with hotels and other accommodation types, such as private flats.
The expenses for 2024/25 represent a decrease from the previous year, during which accommodation costs totaled £3 billion, or £8.3 million per day.
This reduction is largely attributed to lowering the average nightly cost per person through measures such as room sharing and the utilization of more affordable accommodation options.
The government is also exploring the use of alternative accommodation, including military sites, to house asylum seekers.
Home Secretary Shabana Mahmood stated: “This government inherited asylum hotel contracts that were not delivering good value for taxpayers’ money.”
“We have already saved £700m in hotel costs. Now we are recouping millions more in excess profits. And by the end of this parliament, we will have closed every asylum hotel.”
Last month, the Home Office received strong criticism from the home affairs committee regarding its management of asylum accommodation.
Members of parliament on the committee asserted that the government had “squandered” billions of pounds of taxpayer money.
They also accused the Home Office of inadequately utilizing mechanisms to reclaim excess profits generated by accommodation providers.
Certain contracts contain break clauses that would allow ministers to terminate the use of some accommodation in 2026.
The Home Secretary informed the BBC last week that all options are under consideration and that she would “carefully” examine the legal arrangements.
Conservative Shadow Home Secretary Chris Philp stated: “The only way to end this crisis is to end the use of hotels altogether.”
“The Home office is spending £5.77m per day on asylum hotels, meaning these savings will disappear in just 12 days.”
“The truth is the Labour government is accommodating more illegal immigrants in hotels than at the election, and the first nine months of this year have been the worst in history for illegal immigrants crossing the Channel.”
“Only the Conservative Party has a serious, hard-edged plan to take control of our borders.”
The BBC’s Ed Thomas confronted Kardos Mateen, who is at the centre of an illegal worker network.
Calling himself “the accountant”, the fixer told undercover reporters how he could “confuse” immigration enforcement.
The Home Office is promising to investigate after the BBC exposed on a UK-wide criminal network.
Highland Council is to hold a special meeting on the Home Office proposals for the Inverness site.
Undercover reporters were told how easy it was to make big profits selling illegal vapes and cigarettes.
“`