Committees

National Audit Office report reveals asylum accommodation cost – Home Affairs Select Committee to question accommodation providers

8 May 2025

The National Audit Office (NAO) has published a report requested by the Home Affairs Committee into asylum accommodation contracts

The report has revealed that asylum accommodation contracts, initially estimated to have a total contract cost of £4.5 billion, is now estimated to cost £15.3 billion over ten years. In 2024/5, hotel accommodation accounted for 76% of the annual cost of asylum contracts but housed only 35% of people in asylum accommodation. 

The Home Affairs Committee will question asylum accommodation providers as part of its inquiry into asylum accommodation on Tuesday 13 May. 

The Committee will question providers, Clearsprings Ready Homes, Serco and Mears, about their delivery of asylum accommodation. This will include their performance in meeting changing demand for accommodation, as well as providing wider support to asylum seekers. It will also look at their role in delivering Home Office policy goals such as reducing overall cost and ensuring a more even geographic spread of asylum accommodation.  

The session will also provide an opportunity for the Committee to question providers on their approach to safeguarding and the duty of care they have for children and vulnerable people. It will also examine how the Home Office maintains oversight of facilities and the levers available to it to take action against poor performance.

Chair comment

Dame Karen Bradley said: 

“Dealing with the cost of the asylum accommodation system remains a huge challenge for the Government. The NAO report reveals that the cost of these contracts is likely to be over three times what was envisaged when they were drawn up. 

“Next week we’ll be speaking to providers to understand their role in sourcing and managing accommodation for asylum seekers. We want to see why costs have risen so dramatically, but will also be looking at the quality of support that is provided, and will be challenging providers on failures to meet key performance indicators in recent years.”

Witnesses

From 2.45pm: 

  • Steve Lakey, Managing Director, Clearsprings Ready Homes 
  • Claudia Sturt, Prisons and Immigration Director, Serco UK & Europe, Serco Ltd 
  • Jason Burt, Group Director of Health Safety & Compliance at Mears Group

Further information

Image: House of Commons