Asylum Support Contracts

Stephen Doughty Excerpts

Wednesday 10th February 2016 Westminster Hall

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I beg to move,

That the House has considered contracts let by the Home Office for the provision of asylum support.

It is a pleasure to serve under your chairmanship today, Mr Stringer, and it is also a pleasure to be joined by many colleagues from across the House to consider this important issue this morning.

It is my hope that this debate today will elicit some better answers from the Home Office in response to the serious concerns that have been raised by many Members from all parties in the House about the provision of support to asylum seekers under contract to the Home Office.

I begin by paying tribute to my hon. Friend the Member for Middlesbrough (Andy McDonald) and my neighbour, my hon. Friend the Member for Cardiff Central (Jo Stevens), who have done an excellent job, alongside many others, in bringing concerns about the practical implications of the failures of companies providing asylum support service across the UK to the attention of the House and the country. These include examples involving G4S and Clearsprings, including the two particularly shocking examples of the stigmatisation of highly vulnerable people by placing them in houses with red doors or forcing them to wear red wristbands to get food. I will come back to those shameful episodes in a moment, but it is clear that there are additional serious concerns on top of those two high-profile examples.

To begin with, it is worth putting asylum into the wider context of the immigration debate. I make it clear from the start that I believe in a tough and robust immigration system. Successive Governments—it is important to be frank, so that includes those of my own party—have failed on a number of measures regarding the immigration system, including counting people in and out. Exit checks were not introduced until recently—I had long argued that they should be introduced—and until relatively recently we had failed to begin to address the debate on, for example, EU migration and benefits, which has deeply and corrosively damaged public confidence in the many positives that immigration has brought and can bring. My own diverse city and constituency know those positives only too well.

Let me also be crystal clear that I am very proud of the role that Britain has played in offering a place of sanctuary to those fleeing persecution and violence, and it should continue to play that role. I was proud that in the midst of the Mediterranean refugee crisis last year, a cross-party group, brought together by young people from the Butetown and Grangetown areas in my constituency, stood up in my city of Cardiff and made it clear that refugees are welcome in our city, just as they always have been.

I am particularly proud of the work of organisations such as the City of Sanctuary movement in cities including Cardiff, and local organisations such as the Oasis trust in Splott in my constituency, which are working to support these vulnerable people in many different ways.

There is a huge amount of misinformation about asylum seekers and refugees, and the truth is in short supply. The 1951 United Nations convention relating to the status of refugees states that a refugee is a person who

“owing to well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country; or who, not having a nationality and being outside the country of his former habitual residence as a result of such events, is unable or, owing to such fear, is unwilling to return to it.”

In the UK, a person is officially a refugee when they have their claim for asylum accepted by the Government, and an asylum seeker is a person who has left their country of origin and formally applied for asylum in another country but whose application has not yet been concluded.

I am sorry, Mr Stringer, to have to remind us of these raw facts, but because we are in a time of misleading information and hyperbole about immigration, when the media, debate in this House and indeed the Prime Minister himself frequently and dangerously blur the distinctions between asylum seeker, refugee, EU migrant, economic migrant, overstaying visitor and many other categories, we can come to the wrong policy conclusions, fail to support those seeking sanctuary with dignity, and, at the same time, risk community relations and the potential for integration.

To illustrate my concerns, let me give another example, which gets to the nub of some of the concerns about the issue of these contracts and the way that providers are behaving. A number of constituents and local representatives have contacted me in recent weeks with their concerns about a supposed new asylum facility opening up in a residential area of east Cardiff. They had seen the horrible crowding of people into Lynx House in the constituency of my hon. Friend the Member for Cardiff Central, and the media reports, and they are fearful that, for example, a large group of young men might be placed in another unsuitable location, in order to make quick money for a landlord or the contracting company, and with no consultation or dialogue with local residents.

Like most good Cardiff and Welsh people, these constituents and local representatives made it clear to me that they had no objection to asylum seekers or refugees living locally. For example, one older resident told me personally how she would happily welcome in the streets or the local area Syrian families fleeing the horrors that she had witnessed on TV. However, she and others also had very natural fears, which were compounded by rumours that had circulated and the apparent lack of any consultation or dialogue.

In yesterday’s sitting of the Home Affairs Committee, I asked the chief executive of Clearsprings directly whether or not he plans to operate more facilities like Lynx House in east Cardiff, as he had indicated to my hon. Friend the Member for Streatham (Mr Umunna) that he was likely to want to expand his company. I await the chief executive’s urgent reply. Perhaps the Minister can enlighten me, if he is aware of any facts relating to the further plans of Clearsprings in Cardiff.

Many other people have expressed fears, which are often unfounded and based on the hyperbole in the media debate, and other concerns have been fuelled by disgraceful comments, such as the Prime Minister referring to a “bunch of migrants”. As I have said, herein lies the nub of this issue. We appear to have a situation in which the Home Office is contracting with a small number of companies to place highly vulnerable people, often, it seems, in crowded or unsuitable accommodation, in a very small number of areas in a small group of dispersal centres and cities, and frequently in areas of low rents and deprivation. It is good to see the Minister for Immigration himself here in Westminster Hall today, but he admitted yesterday that he had most likely zero or very few asylum seekers accommodated in his own constituency.

[Andy McDonald (Middlesbrough) (Lab)]

My hon. Friend is making an excellent speech. Regarding how these properties are let, was he as amazed as I was to discover that different people can be put into a single bedroom quite inappropriately? A young man in my community who is gay and who has come to this country is having to share a bedroom with somebody who was once a member of the Taliban. Does my hon. Friend not find that an utterly ridiculous state of affairs?

[Stephen Doughty]

I find that absolutely extraordinary; my hon. Friend gives a shocking example. As a gay MP myself, I would find it horrendous to be placed in accommodation with somebody who potentially had persecuted me or potentially would persecute me. However, that is the reality of many people’s experience—they find themselves in unsuitable accommodation. Yesterday in the Home Affairs Committee, we heard one example of 11 people being crowded into a room, and I have heard examples of individuals being placed with people who allegedly may have persecuted them in the past. Some very serious concerns are being raised.

The asylum dispersal and integration process appears to have stopped, and the principle behind it appears to have been abandoned, not only at the limited number of dispersal locations but at the localities within them. I would be interested to hear the Minister’s views on that and on whether we are getting things right. Simply put, the system as it stands is not good for those seeking sanctuary, not good for the communities that those people are being placed in and not good for wider integration, and I also question whether it is good value for the Government.

[Chris Stephens (Glasgow South West) (SNP)]

The hon. Gentleman is making an excellent speech and I thank him for securing this debate. Does he agree that services to asylum seekers have basically been reduced since March 2012, when the Government took the decision effectively to privatise those services? In Glasgow, for example, it was the local authority that was providing the services for asylum seekers.

[Stephen Doughty]

I am not aware of the specific history in Glasgow that the hon. Gentleman refers to, but there are serious questions to be asked about whether these private companies are operating in the most effective way, not only for their users but in terms of their value for money to the taxpayer.

Before I express some detailed concerns about the COMPASS contracts and Clearsprings specifically, let us finally remind ourselves of a few crucial facts. The Refugee Council states that asylum seekers make up just 10% of those people arriving in Britain and that in any case many of those asylum seekers are not granted refugee status. Germany, Hungary, Sweden, Italy, France and Austria all receive significantly more asylum applications than the UK, and very few asylum seekers make it to this country.

Asylum seekers made up just 4.1% of immigrants to the UK in 2014, and the UK is home to less than 1% of the world’s refugees; those figures are from the United Nations High Commissioner for Refugees in 2014. The fact is that the vast majority of the world’s refugees live, often in camps, in the poorest developing countries in Africa, Asia, and the middle east. Between them, those regions host more than three quarters of the world’s refugees. Turning specifically to Wales, an answer from the Immigration Minister on 28 January stated that just 1,086 asylum seekers were accommodated in Cardiff by Clearsprings in 2015, and just 2,384 were accommodated in Wales overall.

I know that other Members will want to get into the detail of their concerns in their areas, but as I have stated publicly before, no one is asking for special treatment for those seeking sanctuary in Cardiff, Wales or anywhere else in the UK. We are simply asking for them to be treated with the dignity and compassion that we would all expect from our fellow human beings. It is easy to pick up a few examples of alleged luxury accommodation or temporary accommodation in mainstream hotels, for example after arrival at an airport, but the reality in Cardiff for many of those seeking sanctuary who I have met and heard from appears to be very different.

The Chair of the Home Affairs Committee, my right hon. Friend the Member for Leicester East (Keith Vaz), outlined to the Minister the direct comments of those in Cardiff who have experienced discrimination as a result of being forced to wear the red bands, and I am sure my hon. Friend the Member for Cardiff Central will want to tell us more about that. Over the past few months, I have been approached by a number of constituents whose treatment by Clearsprings is seriously concerning. I have written to the Home Office on a number of occasions to raise specific cases. Numerous concerns and allegations have been raised by my constituents on the substandard nature of accommodation offered. Those reports have come directly from users and others working with asylum seekers in Cardiff.

Allegations I have received include short-notice evictions, intimidating and abusive behaviour, and people having their bedrooms entered without their consent, which, incidentally, the Home Office has confirmed to me in a letter is entirely consistent with the principles and guidance of the COMPASS contract. That raises some serious questions, especially when we are talking about vulnerable women and children fleeing sexual violence. To have their room entered without consent by a man—even in itself that is a serious concern.

One constituent, who I will refer to as Mrs A, fled rape and sexual violence. That horrific circumstance is faced by many female asylum seekers. With her children, she was settling into her new community in my constituency in Cardiff. She was receiving medical support and had a supportive network for her family via the school and local community. After spending time integrating, establishing that network, getting her life back on track and providing a safe space and sanctuary for herself and her children, Mrs A was suddenly informed at short notice that she had to leave and move more than an hour away to Swansea. Clearsprings provided her with no official letter or communication; there was just an anonymous note posted to her room telling her at very short notice that she should pack up and be prepared to leave.

I was approached by another woman in a very anxious and depressed state who had a young child. She had been made to share a room with a woman with mental health issues who allegedly spat on their possessions and crockery and would leave her child’s potty with the pots and pans in the kitchen. The woman was too scared to complain for fear of jeopardising her situation. That is a crucial point. The chief executive of Clearsprings appeared to suggest yesterday that he was not aware of a lot of the complaints or was not made aware of them by staff or others. The reality is that the vulnerable people living in such accommodation have come from countries where complaining to the authorities will lead to them being incarcerated or, worse still, tortured or killed, so they are naturally nervous about raising concerns with authorities.

Another vulnerable young constituent approached my office earlier this month. She had been encouraged hurriedly to sign a tenancy agreement by Clearsprings, but was not told in advance that she would have to share a room. She was bullied and victimised by other tenants and was distressed as her landlord had complained about and then stopped her brother visiting her. He was her only relative in Cardiff and lived in separate accommodation. The young woman complained that her landlord repeatedly let himself into her room unannounced, including while she was in bed or undressed. She was then told she would be moving with very short notice of two days.

Those are just a few of the stories I have had about Clearsprings, on top of the well-publicised information about the standards at Lynx House. The chief executive of Clearsprings admitted yesterday that 11 people had had to share a room there at one point. We see further revelations in The Guardian this morning about a local authority report into the conditions and the serious concerns about the facility. Indeed, in answer to a recent parliamentary question that I tabled, the Minister confirmed that between 2010 and 2015, the Department received 60 complaints in total regarding services provided by Clearsprings. Staggeringly, 59 of those complaints have been made in just the past six months.

Yesterday the chief executive appeared woefully unaware of those concerns. He appeared bemused about the furore over the red bands and only apologised to the Chair of the Home Affairs Committee under repeated questioning. Highly revealing, however, was his claim that despite repeated visits from Home Office inspectors, no one had raised concerns about the use of the red bands. Given that the Minister rightly admitted yesterday that they were wrong, can he explain why it took the revelations in the media for action to be taken? It is one thing for the chief executive of Clearsprings to dismiss the concerns, but if the property was being inspected by the Home Office, as many of these properties are, why were they not picked up on previously?

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend talked at length about people’s fear in many of those situations. Perhaps the chief executive did not receive complaints because people were too fearful to make them, because they just did not know what would happen as a result.

[Stephen Doughty]

My hon. Friend makes an excellent point. People who have been through those fearful situations—many of them are fleeing such places as Eritrea, Syria, Iraq or Afghanistan—will be fearful of expressing concerns.

The situation is apparently not unique to Cardiff. My hon. Friend the Member for Birmingham, Yardley (Jess Phillips), who unfortunately cannot be present today, wanted me to highlight her experience of working in the asylum system. She noted how women who have fallen through the gaps of the national referral mechanism for victims of human trafficking have suffered greatly under the lack of specialist provision in Government-contracted asylum accommodation. She told me that, for the women who end up housed in G4S accommodation in the centre of Birmingham, none of the same stringent checks and balances that are normally in place for victims of human trafficking are catered for. There are no non-gendered services and there is next to no security in place to protect that vulnerable group of people. Indeed, she was able to walk into the accommodation and witness the name of a woman who had been trafficked written on the wall in the hall, displaying to anyone who might have walked in looking for her that she was there. That is totally unacceptable and raises serious concerns about the special provision needed for some of the people fleeing such situations.

On the COMPASS contract, an answer from the Minister made it clear that in 2012 Clearsprings Ready Homes was awarded two contracts for the provision of asylum accommodation, transport and related services. The estimated contract value for Clearsprings over the seven years—that is, five plus two—for each region is £75 million for Wales and £55 million for London and the south of England. The Clearsprings chief executive admitted yesterday that in 2015, while things were not quite as profitable as he would have liked, he received a salary package of more than £200,000 in return for delivering the contract. His chair, Mr King, received a package totalling £960,000. Most people, whether they are taxpayers or vulnerable asylum seekers, would find those figures astonishing. Other significant and valuable contracts have been let to other providers, including G4S—I am sure we will hear more about those.

The COMPASS contract has a statement of requirements for dispersal accommodation and transport providers. It is worth being specific about the key requirements under the contract. The first is to provide safe, habitable, fit for purpose and correctly equipped accommodation to asylum seekers and to ensure that properties adhere to the standards established in the decent homes standard. The second is to provide adequate transport to and from initial accommodation, dispersal accommodation and medical appointments. The third is to abide by contractual management regulations at all levels, ensuring that there is a complaints procedure for those living in dispersal accommodation and that organisations report on their performance against the specified standards. Each of those duties must fulfil the broader contractual duties to promote and safeguard the welfare of children in particular, to ensure the safety and security of those living within dispersed accommodation, and to ensure that staff have an overview of the asylum process and the needs particular to those seeking asylum.

Yesterday, I made that point directly to the chief executive of Clearsprings, who appeared to imply in his evidence to the Home Affairs Committee that his duties relate only to the bare provision of housing. The words he used were that he was “contractually compliant”. Given the very specific needs of the group of people he is accommodating, I argue that his company and the Home Office should be acting proactively to ensure that the duties set out in the contract are fulfilled.

I have given a number of examples already, but it is not only from my experience that I question whether the standards are being met. During 2015, the Welsh Refugee Council collated a series of complaints demonstrating persistent failings to meet the standards. Analysis of the data reveals a series of persistent concerns around standards of accommodation, size of accommodation, and harassment and antisocial behaviour experienced in accommodation from other tenants and members of staff.

The complaints reveal that it is not simply the physical condition of the properties provided by Clearsprings—we have heard about the situation at Lynx House—that are of concern for service users and providers; the standards of service provision were identified as a serious concern, and there was a general feeling that the service provider had little appreciation of the difficulties faced by asylum seekers and their reasons for seeking sanctuary in the UK. There was a common perception in the survey that there was a greater focus on internal targets and profit generation than on providing a service that protected and supported vulnerable people.

[Andy McDonald]

My hon. Friend is eloquently analysing the structure of the contracts. Does he share my frustration that Jomast, a subcontractor in my area, has some 3,000 properties, and if they are paid £11.50 per person per night, the back of an envelope calculation shows an income of £12 million a year? Such access to taxpayers’ money could surely provide a better service than the one we are currently enjoying.

[Stephen Doughty]

I wholeheartedly agree with my hon. Friend’s comments. Serious questions need to be asked when such a large amount of taxpayers’ money is provided under the quite stringent terms of the contract, but are those terms followed through and delivered? Given that Home Office inspectors regularly visit the properties, as the chief executive of Clearsprings made clear yesterday, why have those concerns not come to attention before?

The concerns that sanctuary seekers face are a constant source of worry and anxiety, often aggravating pre-existing experiences of trauma in what should be a place of sanctuary. Some have reported that their interactions with Clearsprings staff are not consistently facilitated through interpreters, and there have been multiple incidents of perceived hostility and verbal abuse from staff towards residents. Another issue that has been raised with me is the question of male versus female staff in the properties. It has been suggested that there is a significant weakness in terms of the numbers of female members of staff, so can the Minister tell us what the numbers are?

The Welsh Refugee Council and various other charities that deal with refugees and asylum seekers have strongly advocated a radical change in the Home Office’s approach to housing. It is clear and evident that more care must go into supporting this distinct group of people with complex needs, many of whom have experienced persecution, torture and violence.

I will conclude shortly because I know other Members wish to speak, but I want to talk about what needs to happen with the COMPASS contract, and I have specific questions for the Minister. It is my belief that the Home Office should initiate and lead a comprehensive review of the COMPASS contract in Wales and nationwide to deal with housing standards and the experience of users. The review should be multi-agency and should involve, at the very least, the Welsh Government, local authorities, key housing bodies, refugee representatives and the support organisations that work with them.

The review needs to have clear objectives, including improving the monitoring and contract compliance practice within COMPASS, and it needs to underscore the existing COMPASS statement of requirements with a new person-centred framework and guidelines to ensure that high-quality planning, policy and practice exist within COMPASS for all asylum applicants in the UK. It needs to look at the Home Office’s wider equalities duties and its commitments to those who face human trafficking, because it is clear that there are failings in that area. It also needs to look at the experience of users. At a senior level, a contractor might promise to deal with X, Y or Z and to uphold certain standards, but if that is not filtering down to those who actually interact with the relatively small group of vulnerable people, that is simply not good enough.

My final questions for the Minister are these: is he satisfied with the compliance of Clearsprings and other asylum contractors with the terms of the COMPASS contract? Does he consider that they still represent good value for money? Why did no Home Office inspector raise concerns with Clearsprings about the red band issue prior to its exposure in the media? What other concerns have been raised with him about Clearsprings operations in Cardiff or elsewhere in the UK?

Does the Minister consider the salaries and remuneration of the Clearsprings directors and CEO to be appropriate for a public sector contract of this nature? The chief executive of Clearsprings admitted yesterday that the £960,000 payment to his chair resulted from a discussion with Her Majesty’s Revenue and Customs about the best “tax approach” to take to a loan. Can the Minister tell us any more about that and whether he was aware of any such discussions involving HMRC? How many individual sites does the Clearsprings contract house asylum seekers at in Wales? Is he aware of plans to expand those facilities? Obviously, I have specific concerns about the plan to expand into another potentially unsuitable facility in the east of Cardiff.

Finally, is dispersal evenly spread across localities and local government wards in Cardiff and other dispersal locations across the UK? I have a concern that we are not dispersing to enough locations in the UK. There is a question of what happens within cities and the localities into which individuals are placed, which is crucial when we consider integration and balance within a city.

I conclude by reminding Members that we are not asking for special or VIP treatment. We are simply asking for human beings to be treated with the dignity and compassion that they rightly deserve, and it is the Home Office’s duty to ensure that that is the case.

[Several hon. Members rose—]

--- Later in debate ---

[James Brokenshire]

The contracts, with commercial details redacted, are available through the gov.uk website. Obviously I can point the hon. Lady to the relevant details. However, I want to underline the change in the KPI position and the fact that sums levied under service credits have markedly reduced. That is not to say that I am satisfied with the issues that hon. Members from across the House have presented to me today, particularly about the complaints process and the complaints that are being raised.

One issue that has come from the Middlesbrough audit, which I hope to publish later today, relates to inspection. I mentioned that a third of properties were being inspected, and I believe the focus is primarily on the accommodation itself—whether the decent homes standard is being met and what steps are being taken to remedy defects that are identified. The audit has not indicated complaints coming through about the red doors issue, for example, or indeed wristbands. Therefore, as one of the actions coming out of the audit, I have asked my officials to review the issue of complaints and how they are escalated, as well as the questions that inspectors ask the people who use the accommodation, to see that any concerns related to the performance indicator on complaints can more readily come to our attention.

[Stephen Doughty]

Given the points that have been made today, is the Minister satisfied with what is happening in relation to the specific issues affecting women and children? Is there is the right staffing balance to deal with them, and is there the right level of training, particularly for dealing with people who may have been trafficked or subjected to sexual violence? Will he commit to looking specifically at that issue?

[James Brokenshire]

The hon. Gentleman knows that I am happy about the steps that we have taken with the national referral mechanism, and he knows the importance that we attach to the issues of enslavement and trafficking. The information received from Europol is that about 90% of those who arrive on our shores have been trafficked in some way to get to their destination.

I want to underline the message that the COMPASS contracts are delivering savings. We see them as being on track to deliver about £137 million of savings. Two of the contractors have said publicly to the Public Accounts Committee that they are making losses in this context, so we believe we are getting value for money. We are getting improvements in the quality of the accommodation; it is the issue of complaints that concerns me. Some of the refugee charities have highlighted issues, which I will reflect on in light of the audit and inspection. I will see how things can be better targeted, how the contracts can continue to deliver and, equally, how the voice of the recipients can be better reflected. That will enable us to improve the way we pick up on issues such as those that have been identified, which have rightly caused concern.

Motion lapsed (Standing Order No. 10(6)).