Question to the Home Office:

To ask the Secretary of State for the Home Department, whether the new Asylum Accommodation contracts and attendant Statement of Requirements and Performance Management regime include mechanisms for levying financial penalties on providers who fail to meet contractual obligations.

The Home Office has a rigorous contract compliance regime in place to ensure that the required performance standards expected of all providers, as defined in the contracts, are met. More specifically:

The Provider shall perform the Services to meet or exceed the Performance Standards defined in the Statement of Requirements and the Key Performance Indicators (KPIs) defined within the Performance Management Regime.

Service Credits associated with Provider performance failures against the KPI targets, shall be applied by the Authority from the Contract Effective Date.

Service Credits will be applied in the event of performance failures against KPIs, at a level commensurate with the Provider’s degree of failure against the relevant KPI. The agreed Service Credit Payment (SCP) for each Service Area will be deducted from the Monthly Service Payment which would otherwise be payable to the Provider for the relevant Payment Period.