Some observations/criticisms in the report going forwards:
The number of asylum seekers in hotels is currently significantly lower than during the peak of hotel use—32,059 people as of June 2025, compared to 56,042 in September 2023, although that still represents an 8% increase on the numbers being accommodated in hotels in June 2024, which casts doubt on the Home Office’s assertion they are continuing to reduce reliance on hotel accommodation.
The Government has committed to reducing the cost of the asylum system and ending the use of hotels by 2029. This is a stated Government priority, but making promises to appeal to popular sentiment without setting out a clear and fully articulated plan for securing alternative accommodation risks under-delivery and consequently undermining public trust still further.
[There is a break clause to the contracts beginning March 2026]
The 2026 break clause and the end of the contracts in 2029 represent an opportunity to draw a line under the current failed, chaotic and expensive system and move to a model that is more effective and offers value for money. While the Home Office is considering options, it has not yet shared a clear strategy for the delivery of a sustainable accommodation system. Moreover, there has been little clarity from ministers even regarding the basis on which they will make a decision on using the break clause. There is a serious risk that if the Home Office does not expedite the development of a long-term strategy for the future delivery of asylum accommodation, when it is time to replace the current contracts the department will find itself in a similar position to that of 2019, with limited choices as to how it secures accommodation.
The Home Office has developed plans for a fairer distribution of asylum accommodation, but made limited progress, and we share the scepticism that their plans will be achieved.