Asylum accommodation should be devolved to avoid costly reliance on hotels, report finds
The Institute for Public Policy Research says mayors and other local leaders are better placed to find suitable housing, and could end the Home Office’s costly reliance on hotels. Currently, the government outsources asylum accommodation to private companies like Clearsprings, Mears and Serco.
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Hide AdThis has led to a reliance on hotels to house migrants, with costs rising from £17,000 per person in 2019-20 to £41,000 per person in 2023-24. While over that time the overall cost of the asylum system has risen from £739 million to £4.7 billion.
Certain chains like Britannia Hotels, which owns the Grand in Scarborough, have become known for turning millions of pounds in profits on taxpayer contracts to home migrants. The multimillionaire owner Alex Langsam has been dubbed the “asylum king”.
The Grade II-listed building, once dubbed one of the seven wonders of the English seaside by Historic England, is now Yorkshire’s most complained about hotel with more than 4,200 terrible reviews on Tripadvisor.
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Hide AdIn other places, like the Holiday Inn in Wath-upon-Dearne, near Rotherham, such hotels have become targets of violence. During the summer riots, far-right thugs tried to burn down the building with asylum seekers inside. Dozens of people were jailed following the incident.
Despite the costs of accommodation increasing, IPPR says the quality has not. One person told the think tank: “We will stay in the room [with] four in the room, just one room, no cleaning, no bedsheet.”
IPPR believes that by decentralising and devolving asylum accommodation, regional bodies will be better placed to find affordable and safe housing.
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Hide AdDr Lucy Mort, senior research fellow, said: “The asylum accommodation system is in urgent need of reform. It’s costing far too much while failing to provide people fleeing war and persecution with the safe, clean environments they need.
“Poorly designed contracts, mismanagement, and lack of local input have left those seeking asylum trapped in substandard living conditions for too long; and caused real challenges for regional, local and devolved governments.
“We must decentralise control to regional and local bodies that can better understand and serve their communities, enhance safeguarding to protect vulnerable people, and create the conditions for those seeking asylum to rebuild their lives.”
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Hide AdThe new Labour government has made a priority of increasing mayoral powers, with Sir Keir Starmer saying: “I strongly believe that those with skin in the game make the best decisions.”
York and North Yorkshire Mayor David Skaith said: “The best way to reduce the cost of temporary housing for asylum seekers is to get to grips with the backlog of claims waiting to be processed. The Conservative government prioritised unworkable laws and created a significant backlog.”
He added: “I want everyone who lives, works or visits York and North Yorkshire to feel a sense of belonging. That's why my priority for housing is to deliver affordable and social homes across our region."
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