Asylum Seekers: MOD Housing Debate

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Department: Home Office

Asylum Seekers: MOD Housing

Paul Kohler Excerpts
Wednesday 29th October 2025

(1 day, 16 hours ago)

Commons Chamber
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Alex Norris Portrait Alex Norris
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My hon. Friend raises the crucial part of the equation. Over the past year, we have made significant inroads in our efforts to disrupt organised crime and the people who use this model to prey on others. We have done 350 disruptions—an increase of 40% on what we inherited. These are embedded gangs who have had a six-year head start on this Government thanks to the Conservatives. That work is vital, but underpinning the gangs’ business model is the attraction of this country. We have to remove the hotels and illegal working to make sure we are not so attractive.

Paul Kohler Portrait Mr Paul Kohler (Wimbledon) (LD)
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My colleague on the Home Affairs Committee, the hon. Member for Edinburgh East and Musselburgh (Chris Murray) made an excellent point. The asylum accommodation contract signed under the previous Tory Government gifted scandalously high profits to private providers. Frankly, it is a PPE-type scandal. Clearsprings’ profits soared from £6,000 per employee in 2020 to £300,000 per employee in 2024, with its owner Graham King entering the Sunday Times rich list. Vast sums are still being wasted on asylum hotel accommodation under those same flawed arrangements, despite this Government having been in power for 16 months, and the numbers housed in hotels has increased by 8% over the past year. Will the Minister please explain how any new asylum accommodation will be provided in a cost-effective manner that does not allow private companies to make further obscene profits on the backs of the UK’s hard-working people?

Alex Norris Portrait Alex Norris
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We have to work within the parameters of the contracts that we inherited from the Conservatives, but I can give the hon. Gentleman the assurance that we have reduced that bill by £1 billion, including £500 million from hotels. We are looking further at the profit-sharing elements of those contracts, and are recouping money for the taxpayer by making sure we get the best deal possible.