MPs Slam Home Office Over Billions Wasted On Asylum Hotels

Billions of pounds in taxpayer money have been wasted on asylum accommodation after years of poor management and flawed contracts, a damning new report by the Home Affairs Committee has found. MPs said the Home Office’s system for housing asylum seekers had spiraled out of control, with hotels becoming the default option instead of a short-term fix. What started as a temporary solution has turned into an expensive, unpopular, and unsuitable approach that has cost the public far more than expected.

The committee found that projected costs for accommodation between 2019 and 2029 have tripled from £4.5 billion to £15.3 billion. Despite this, the department failed to recover tens of millions of pounds in excess profits owed by private providers and issued no fines for poor performance, even at sites like Napier, Wethersfield, and hundreds of other hotels across the country.

The report said that “failures of leadership at a senior level” and “inadequate oversight” meant problems went unnoticed and unaddressed for years. The Home Office was also accused of lacking the skills to manage large contracts effectively.

Currently, around 103,000 asylum seekers are being housed by the government, with roughly a third living in 210 hotels. MPs said this reliance on hotels had damaged community relations, particularly in towns like Epping, Essex, where protests erupted outside the Bell Hotel after a resident was charged and later jailed for sexual assault.

The committee urged the Home Office to engage more with local communities and tackle misinformation that has fueled anger and division. It also called for a long-term accommodation strategy that provides value for money and maintains decent living standards for asylum seekers.

Committee chair Dame Karen Bradley 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.” She warned that without serious reform, the department was “doomed to repeat” its mistakes.

Break clauses in 2026 and the contracts’ expiry in 2029 offer a chance for a full reset. The report warned, however, that without a clear plan and stronger institutional capability, the Home Office risks “under-delivery and consequently undermining public trust still further.”

In response to the report, a Home Office spokesperson said the government was “furious about the number of illegal migrants in this country and in hotels,” adding: “We have already taken action – closing hotels, slashing asylum costs by nearly £1bn and exploring the use of military bases and disused properties.” Communities Secretary Steve Reed said ministers were “working at pace to fix the problems we inherited,” pointing to plans to use former military sites as cheaper alternatives to hotels. Two sites, Napier Barracks in Kent and MDP Wethersfield in Essex, are already in use, with more locations expected to be announced soon.

Dame Karen Bradley said she welcomed the government’s commitment to move away from hotels but warned against making “undeliverable promises to appeal to popular sentiment.” She said: “It shouldn’t set itself up for more failure.”

The committee’s message was clear: the Home Office must stop firefighting and start planning. After years of chaos, MPs say it’s time for the department to rebuild trust, deliver value for money, and finally get a grip on the asylum system.