Company has contract to house asylum seekers removed

The Home Office is ending a company’s contract to provide accommodation for asylum seekers.

Stay Belvedere Hotels (SBHL) houses people waiting for asylum decisions in 51 hotels in England and Wales, as well as the Napier Barracks in Folkestone, Kent, which is due to close and be returned to the Ministry of Defence in September.

The decision to end the contract, worth around £2 billion a year, comes after a review of all contracts to provide asylum accommodation.

Concerns

The review raised concerns about the company’s performance and behaviour, according to a Home Office statement, which said the safety and security of people staying and working in temporary accommodation was a government priority, as well as ensuring value for money.

The earliest point the Home Office contract, which was awarded in 2019, can be exited without payment of a break cost is September next year.

It is unclear what arrangements there are for asylum seekers currently living in the accommodation after the contract ends.

The Times reported that the Home Office will bring in the company which managed the Bibby Stockholm, Corporate Travel Management.

Minister for border security and asylum Angela Eagle said: “Since July, we have improved contract management and added more oversight of our suppliers of asylum accommodation.

“We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure Home Office contracts deliver for the UK.”

Review

The Home Office, which is committed to ending the use of asylum hotels, said it was working to “put robust plans in place” to minimise disruption.

Housing minister Matthew Pennycook told Times Radio he would not provide “the specifics” of why the Home Office cancelled the contract but that “operational details are being worked out”.

He added: “We did need to review these disastrous contracts on asylum accommodation we inherited. We’re doing so to improve management and guarantee value for money for the taxpayer.”