UK Inquiry Tracker

Asylum accommodation and support transformation programme

Public Accounts Committee Closed Inquiry

Opened: 7 Sep 2020 Closed: 25 Mar 2021 Parliament page

The Home Office designed the 2019-2029 asylum seeker accommodation and support contracts to improve services for asylum seekers and their families while their applications for asylum in the UK are being considered. These replaced the previous COMPASS contracts for asylum seeker support with seven similar regional contracts for accommodation and … Read more The Home Office designed the 2019-2029 asylum seeker accommodation and support contracts to improve services for asylum seekers and their families while their applications for asylum in the UK are being considered. These replaced the previous COMPASS contracts for asylum seeker support with seven similar regional contracts for accommodation and transport, and a new national helpline and support service called AIRE. In the three months from July and October 2019, the number of asylum seekers in short-term accommodation increased by 96% - from 1,678 to 3,289. Most people were moved from this initial, short-term, accommodation into longer-term housing within a few weeks, although some have stayed much longer. Between September 2019 and February 2020, the average time spent in initial accommodation was 26 days, in line with Home Office expectations - but 981 people who had arrived by the end of December 2019 stayed in that initial, temporary accommodation for at least 86 days, during which time they are not able to register with a GP practice or enrol their children into school. The AIRE service failed its users in its early months and despite some improvements, the service has not yet delivered consistently acceptable performance. The contractor, Migrant Help, expected to receive 21,400 calls per month to the AIRE helpline, but received more than twice this number. As a result, only a fifth of helpline calls were answered. Although call waiting times have improved since Migrant Help recruited more staff, other AIRE services have not met standards set by the Home Office. For example, Migrant Help also took on average three to four times longer than expected to complete application forms for failed asylum seekers who were facing destitution. Following a request by local authorities, the Home Office agreed that by 2029 the regional distribution of supported asylum seekers would be in line with the UK regional population - that would mean more than doubling the number of accommodated asylum seekers in the south of England. The Department has not calculated what this might cost, but given higher accommodation costs in the south, the NAO estimates that it could be an extra £80 million. This is in addition to price increases that the Department may have to negotiate with providers if the number of accommodated asylum seekers increases beyond limits in the contracts. The NAO report on asylum accommodation and support therefore finds that, despite asylum accommodation and support contracts being replaced with less disruption than last time, it is not clear whether the new, more costly £4 billion contracts will give value for money, with some providers initially failing to meet Home Office standards. The NAO recommends that the Home Office should collaborate with providers to address early performance issues and to meet its future aims for the service. The Department needs to work with Migrant Help to improve the performance of the AIRE helpline and secure better outcomes in other areas, such as inductions for new arrivals. In addition, the Home Office should review whether asylum seekers who have been in initial, short-term accommodation for some time are being offered longer-term accommodation at the same rate as recent arrivals. In early October we will question senior Home Office officials on the services and accommodation provided to asylum seekers in the UK, and attempts to improve it. If you have evidence on the issues raised in this inquiry please submit it here by Thursday 1st October 2020. Show less

6 Recommendations

18 Conclusions

1 Report

1 Oral session

5 Letters

1 Event

Activity timeline 8 events

16 Apr
2021

Correspondence

Correspondence from Matthew Rycroft CB, Permanent Secretary, Home Office, re Treasury Minute response to the Committee’s report on the asyl…

25 Mar
2021

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty fifth report from Session 2019-21

16 Mar
2021

Correspondence

Correspondence from Matthew Rycroft CBE, Permanent Secretary Home Office, re Recommendation 1, Twenty-Fifth Report of Session 2019-21: Asyl…

8 Mar
2021

Correspondence

Correspondence from PAC Chair Meg Hillier to Matthew Rycroft CBE, Permanent Secretary, Home Office, re Treasury Minute response to the Comm…

12 Jan
2021

Correspondence

Correspondence from Matthew Rycroft, Permanent Secretary, Home Office, re Twenty-Fifth Report of Session 2019-21 Asylum Accommodation and S…

20 Nov
2020

Report published

Twenty-Fifth Report - Asylum accommodation and support transformation programme

20 Oct
2020

Correspondence

Correspondence from Matthew Rycroft, Permanent Secretary, Home Office, re Home Office Asylum Accommodation and Support, dated 15 October 20…

1 Oct
2020

Oral evidence

Asylum accommodation and support transformation programme

Oral evidence sessions 1 session

1 Oct 2020

View on parliament.uk

Asylum accommodation and support transformation programme

Matthew Rycroft CBE · Home Office Sean Palmer · Home Office Shona Dunn · Home Office

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Twenty-Fifth Report - Asylum accommodation and support transform…	HC 683	20 Nov 2020	24	Responded

Recommendations & Conclusions

2 results

4 Conclusion Acknowledged

Twenty-Fifth Report - Asylum accom…

Despite paying more for the new service than for COMPASS, the Department has not yet...

Despite paying more for the new service than for COMPASS, the Department has not yet demonstrated that it is getting value for money in return. The Department asserts that COMPASS was under-priced and that its modelling indicated that the new … Read more Despite paying more for the new service than for COMPASS, the Department has not yet demonstrated that it is getting value for money in return. The Department asserts that COMPASS was under-priced and that its modelling indicated that the new services should cost between 20% and 31% more. Only three of the seven geographically based contracts initially attracted more than one bid, and three contracts were awarded to the sole bidder. Two of the contracts initially attracted no bids at all. In total only four companies submitted bids and the Department became a customer in a seller’s market. The Department is paying an estimated 28% more to providers, but with more bids it may have been able to secure better prices. Two of the three COMPASS providers continued to provide services under the new contracts, even though one of these had paid millions of pounds in service credits for performance failings. In return for paying more, the Department expects a better quality service and better support for vulnerable people. To be able to provide this better service, providers need to share data with each other, and with the Department. However, this has been hindered by an inability to share information automatically; instead relying on exchanging information by email and telephone, which is inefficient and more prone to errors. The Department is working to improve the automated sharing of data. Providers expect to make profits of between 5% and 13%, which the Department deemed reasonable when compared to other outsourcing contracts. The Department intended, from the early months of the contract, to use open book accounting to assess the providers’ profits, but this is not yet in place, meaning it cannot know whether it is paying a fair price for the services and therefore it cannot provide evidence to show contractors are not making more profit than is reasonable. The Department is overclaiming success Asylum accommodation and support transformation programme 7 and justifying Show less

Government Response

The government is revising contract management structures to ensure defined roles and sufficient resources, developing more robust operating procedures with training, and improving information capture and sharing.

HM Treasury

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18 Conclusion Acknowledged

Twenty-Fifth Report - Asylum accom…

The Department told us that sourcing hotels in the COVID-19 pandemic had been an extremely...

The Department told us that sourcing hotels in the COVID-19 pandemic had been an extremely challenging and fast-moving situation. It recognised that there had been some issues with engaging local authorities and explained that it had redoubled its efforts since … Read more

Government Response

The government acknowledged the communication issues, stating it has taken further steps to improve engagement, is consulting stakeholders, and conducting lessons learned exercises. This work will inform a Directorate Engagement Strategy to be shared.

HM Treasury

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Government Response AI assessment · 23 of 6 classified

Accepted 10

Accepted in Part 3

Acknowledged 2

Deferred 1

Not Addressed 6

Rejected 1

Total 6 recs + 18 conclusions

Correspondence 5 letters

16 Apr 2021 Correspondence from Matthew Rycroft CB, Permanent Secretary, Home Office, re Treasury Minute response to the Committee’s report on the asylum accommodation and support transformation programme, dated 8 April 2021

Parliament page

16 Mar 2021 Correspondence from Matthew Rycroft CBE, Permanent Secretary Home Office, re Recommendation 1, Twenty-Fifth Report of Session 2019-21: Asylum Accommodation and Support Transformation Programme, dated 2 March 2021

Parliament page

8 Mar 2021 Correspondence from PAC Chair Meg Hillier to Matthew Rycroft CBE, Permanent Secretary, Home Office, re Treasury Minute response to the Committee’s report on the asylum accommodation and support transformation programme

Parliament page

12 Jan 2021 Correspondence from Matthew Rycroft, Permanent Secretary, Home Office, re Twenty-Fifth Report of Session 2019-21 Asylum Accommodation and Support Transformation Programme, dated 04 January 2021

Parliament page

20 Oct 2020 Correspondence from Matthew Rycroft, Permanent Secretary, Home Office, re Home Office Asylum Accommodation and Support, dated 15 October 2020

Parliament page