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  6.  » Billions Wasted on Migrant Hotels: Bombshell Report Reveals “Incompetent” Home Office Lets Private Firms Make “Excessive Profits”

Will Jones – The Daily Sceptic Oct 27, 2025

The Home Office has “squandered” billions of pounds on asylum hotels, a damning report by MPs has found, blasting the department’s “incompetence” that has allowed private companies to make “excessive profits” from the crisis. The Mail has more.

There was “manifest failure” by the Home Office to “get a grip” of contracts with private companies it appointed to house asylum seekers, they concluded.

As a result, the firms had been allowed make “excessive profits” from the Channel crisis.

In one of the most damning reports ever published into the dysfunctional department, the MPs said the Home Office was “not up to this challenge” and demanded a series of major changes.

The Commons’ Home Affairs Select Committee said it was “inexplicable” the Home Office did not require accommodation providers to assess the impact on local areas before opening migrant hotels.

It had led to “some local services experiencing unsustainable pressures”, damaging community cohesion and allowing “misinformation and mistrust to grow”.

Committee Chair Dame Karen Bradley MP said: “The Home Office has presided over a failing asylum accommodation system that has cost taxpayers billions of pounds.

“Its response to increasing demand has been rushed and chaotic, and the department has neglected the day-to-day management of these contracts.

“The Government needs to get a grip on the asylum accommodation system in order to bring costs down and hold providers to account for poor performance.

“Urgent action is needed to lower the cost of asylum accommodation and address the concerns of local communities.”

She added: “There is now an opportunity to draw a line under the current failed, chaotic and expensive system, but the Home Office must finally learn from its previous mistakes or it is doomed to repeat them.”

In 2019 the Home Office signed 10-year contracts with the three companies to provide asylum accommodation across the UK.

Serco holds the contracts for the North West, Midlands and the East of England, Clearsprings operates in the South and Wales; and Mears covers Yorkshire and the Humber, the North East, Scotland and Northern Ireland.

The contracts were initially focused on providing self-catering flats and houses – termed “dispersal accommodation” by the Home Office – but expanded to hotels during the pandemic onwards amid a surge in Channel crossings.

The companies also operate large-scale accommodation centres on ex-military sites at Wethersfield, Essex, and Napier Barracks, in Folkestone, Kent.

At the time they were signed, it was estimated the contracts would cost the taxpayer £4.5 billion over a decade but officials now predict the final bill will be £15.3 billion.

According to latest figures the Home Office is supporting 103,000 migrants at the taxpayers’ expense including just over 32,000 in hotels.

Migrant hotels cost the taxpayer an average of £144.98 per person per night compared with just £23.25 for dispersal accommodation.

The report, published today, identified a catalogue of errors.

Worth reading in full.