STORY
The Government has reclaimed £74 million from companies running hotels for asylum seekers after finding that they had made excessive profits from public contracts. The move follows months of scrutiny over the costs of housing asylum seekers in temporary accommodation, with reports suggesting that some firms had charged the Home Office substantially above market rates. Ministers said the money would be returned to taxpayers and that stronger measures were being introduced to ensure fair pricing in future contracts.
The UK currently spends more than £8 million a day on hotel accommodation for asylum seekers, a figure that has drawn sharp criticism amid record backlogs in processing claims. Officials said the reclaimed funds mark the start of wider efforts to tighten financial oversight across the asylum estate, with a focus on reducing reliance on hotels and shifting people into cheaper, longer-term housing. The Home Office added that it was committed to ensuring “value for money” and would continue to challenge suppliers found to be profiting excessively from the system.