UK Wasting Millions on Asylum-Seeker Housing Deals, Report Says

The UK's asylum accommodation system is under scrutiny following a report by the Institute for Public Policy Research (IPPR) that highlights escalating costs and substandard living conditions for asylum seekers. The report, released on October 24, 2023, found that the average annual cost of asylum accommodation has more than doubled since 2019, reaching approximately £41,000 per person in 2023/24. This increase is primarily due to the reliance on hotels for accommodation, which cost around £145 per night per person compared to the average of £14 per night for dispersal accommodation (IPPR, 2023).

The report also found that the overall cost of the asylum system has risen from £739m to an expected £4.7bn in the same time frame. Several refugees and asylum seekers have reported "unsafe" conditions, including being housed in cramped accommodation with too few beds, no cleaning, and no bedsheets (IPPR, 2023). These substandard living conditions can lead to additional costs, such as healthcare and social services, further straining the system.

The IPPR's report claimed that the increases in cost could have been driven in part by the "slow processing of asylum claims" and the "growing backlog" under the Conservative former government. In February 2023, it was found that up to 50,000 asylum seekers in the UK were trapped in a "perma-backlog" due to delays in processing claims (IPPR, 2023).

The report suggested that the reliance on hotels for accommodation is staggeringly more expensive than traditional housing stock, with hotel accommodation costing around £145 per night per person compared to the average of £14 per night for dispersal accommodation. The IPPR recommended decentralizing the provision of accommodation and support away from the Home Office and towards regional bodies to better understand and serve local communities (IPPR, 2023).

Jeremy Bloom, a solicitor for Duncan Lewis, one of the largest providers of asylum legal aid in the UK, explained that part of the reason asylum seekers are housed in temporary accommodation like hotels for "far too long" is due to "systemic delays in the asylum system". He also noted that the asylum support accommodation system is broken, with asylum seekers often living in unsuitable conditions and the taxpayer footing a bill that lines the pockets of private companies that routinely fail to meet the requirements of their contract with the Home Office (IPPR, 2023).

Dr Lucy Mort, senior research fellow at IPPR, claimed that the asylum accommodation system in the UK is "in urgent need of reform", and costs are too high while "failing to provide people fleeing war and persecution with the safe, clean environments they need". She suggested that the government should take advantage of the break clause in the contracts in 2026 to implement decisive reform, immediately closing any remaining failing large sites, and improving the overall quality of accommodation (IPPR, 2023).

The UK's asylum accommodation system is facing significant challenges, with escalating costs and substandard living conditions for asylum seekers. The reliance on hotels for accommodation, slow processing of asylum claims, and outsourcing to private providers have all contributed to these issues. To address these challenges, the government should consider decentralizing the provision of accommodation and support to regional bodies, accelerating the processing of asylum claims, and implementing robust safeguards and oversight mechanisms to ensure that asylum seekers are treated fairly and that resources are used effectively. By doing so, the UK can improve the efficiency and value for money of its asylum-seeker housing system, while also ensuring that asylum seekers are treated with dignity and respect.