The Home Office has an obligation to provide accommodation to asylum seekers while their cases are resolved, and to transport them to this accommodation. The former UK Border Agency spent £150 million on providing accommodation to asylum seekers in 2011-12.
In May 2012, the Home Office replaced its previous suppliers (21 separate contracts with 10 housing providers) with six new asylum housing contracts collectively called COMPASS (Commercial and Operating Managers Procuring Asylum Support). These new contracts are provided by three suppliers (G4S, Serco and Clearel) with each covering two regions of the UK. Following a transition period, the contracts became fully operational by January 2013. The Home Office anticipates that it will save around £150 million over five years through the introduction of these new contracts.
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