Asylum Support Contracts

Debate between Stuart C McDonald and Andy McDonald

Wednesday 10th February 2016 Westminster Hall

[Stuart C. McDonald]

The hon. Lady makes an excellent point and I agree wholeheartedly. Having only 17 Home Office inspectors for some 36,000 placements seems wholly inadequate. Furthermore, the lack of complaints is not surprising given the vulnerable nature of many of the people who use the services, as hon. Members have said, and given the evidence that induction packs are often insufficient, if they are even given out at all. It is little surprise that it is not the KPIs, inspections or complaints that are throwing the problems up—it is campaign groups, non-governmental organisations and diligent investigative journalists.

The question is, what more would we discover if we had a thorough inquiry into how the contracts are working? At the moment we can only speculate, but we can all agree that there are enough danger signs for us to say that we definitely need such an inquiry. I have asked for the Home Affairs Committee to undertake that task, although I agree that other possibilities exist.

In fairness to the Immigration Minister, he did not make the decision to switch to the COMPASS contract. That decision was made in 2009, with the then target contracts phased out in time for COMPASS kicking off in 2012. As the hon. Member for Stockton North (Alex Cunningham) pointed out, the ambition was to save £140 million on services over seven years by replacing 22 separate contracts with six larger COMPASS contracts.

Although the Minister was not responsible for instigating the contracts, he will soon have to decide whether to extend them and I hope that he will not do so without a thorough and wide-ranging review of contractor performance. I also hope that the Home Office will wait for such a review before pressing ahead with the welcome plans to broaden the number of local authorities involved in dispersal.

We on the Opposition Benches doubt whether such services can ever be amenable to contracting when the only possibility to maximise returns is cutting corners and costs and the people accessing services have no choice in who provides their housing. In other words, they have to like it or lump it, and many asylum seekers will lump it silently. Serious consideration should be given to changing fundamentally how we provide housing for asylum seekers, including a possible return to provision by local authorities. We also have to consider whether the savings envisaged by the COMPASS contracts have been delivered.

[Andy McDonald]

The hon. Gentleman is making an important contribution. On local authorities stepping back into the breach, does he share my concern that while that is desirable, it would be a disaster if money did not follow that move? If that path is pursued, my fear is that Government will simply expect local authorities to take that on without that qualification.

[Stuart C. McDonald]

Absolutely. There is a huge question mark over whether sufficient resources have been provided to fund the contracts and that remains as a question whether services are returned to local authorities or not.

We must consider whether the savings envisaged in the COMPASS contracts have been delivered by so-called efficiencies or simply by lowering accommodation standards. I thank the hon. Member for Cardiff South and Penarth for ensuring that the House considers asylum support contracts, which will require even more detailed and thorough consideration in the months ahead.