Asylum Hotels and Illegal Channel Crossings

(Urgent Question): To ask the Home Secretary to make a statement on asylum hotels and illegal immigrants crossing the channel.

As the right hon. Member is aware, the Home Office discharges its statutory duty to provide accommodation and to support destitute asylum seekers through seven asylum accommodation and support services contracts. Those contracts were entered into by the previous Government, commencing in 2019, and are split between three providers: Clearsprings Ready Homes Ltd, Serco Ltd, and Mears Ltd.

Significant elements of the behaviour and performance of one of the sub-contractors of Clearsprings Ready Homes fell short of what we would expect from a Government supplier. That is why the Home Office has informed Clearsprings Ready Homes that it must exit the arrangements with a subcontractor in its supply chain, Stay Belvedere Hotels. We will not hesitate to take further action in respect of Clearsprings and its wider supply chain if that proves necessary, and we are conducting a full audit of our supply chain.

We expect the highest standards from those contracted to provide essential services, and this Government will always hold them to account for delivery, performance and value for money. Where there are concerns about how contractors or their subcontractors are discharging their contractual obligations, we will not hesitate to take swift and decisive action.

The Home Office progresses matters relating to these contracts with its providers in commercial confidentiality. I will not give a running commentary, but I assure the House that whatever the position with any of its providers, the Home Office remains focused on maintaining continuity of service and ensuring that our statutory obligation is met at all times, and has contingency plans in this regard. None of that takes away from our commitment to reducing the huge cost of asylum hotels, which remains our priority.

In relation to channel crossings, this Government have put forward a serious, credible plan to restore order to our asylum system, including tougher enforcement powers, ramping up returns to their highest levels for more than half a decade, and a major crackdown on illegal working to end the false promise of jobs, used by gangs to sell spaces on boats. Increased law enforcement action and disruption is already showing some indication of pressure on the business model of the gangs, and we are introducing new powers for law enforcement to use against the vile trade in people smuggling and trafficking.

Last summer, the Government were elected on a promise to end the use of asylum hotels. Well, it has now been nine months, so let us see how they are getting on. The use of asylum hotels has gone up by 8,000 since the general election—it has not gone down; it has gone up. Some 38,000 mainly illegal immigrants are now in those hotels, costing hard-working taxpayers around £2 billion a year. It is completely unacceptable that taxpayers are asked to foot a bill that size. The people living in those hotels broke our laws by coming here from France, which is a manifestly safe country that nobody needs to leave. I have a very simple question for the Minister: when will the Government end the use of asylum hotels?

During the election campaign last summer and subsequently, the Government also promised to “smash the gangs”, but that promise now lies in tatters. In the nine months since the election, 29,162 people—nearly 30,000 people—have illegally crossed the English channel, which is a 31% increase on the same period 12 months before. In fact, 2025 is even worse. Since 1 January, more people have crossed the English channel illegally than in any year in history—this is the worst year. It is 38% worse than the previous worst year, so things are getting worse not better. They have not smashed the gangs, but capitulated to them.

The hon. Lady mentioned returns. Most of those returns do not relate to people who arrived by small boat. In fact, those people being returned who came by small boat amount to only about 4% of small boat arrivals; I do not know how letting 96% of people who arrived by small boat stay here is a deterrent.

At the weekend, we saw briefings—to the press and not to Parliament, Mr Speaker—that the Government are now considering some kind of offshore removal scheme. That sounds vaguely familiar! At last they have realised that some kind of removals deterrent is needed. Will the Minister now apologise for cancelling the Rwanda deterrent before it even started and, as a consequence, losing control of our borders?

I will not take any lessons from the shadow Minister. In his last three months as Immigration Minister, nearly 10,000 people crossed the channel in small boats, but he is complaining about half that level of crossings happening in the past three months. Neither will I take any lessons from someone who served in a Government who presided over a situation where, at its height, there were 56,000 people in more than 400 hotels. We are getting a grip on the problem by starting up asylum processing once more, but we inherited a huge backlog. There was a 70% fall in asylum processing in the run-up to the general election, with more than 100,000 people stuck without being processed in the asylum system. We are getting a grip of that, but by definition, the backlog and chaos that the Conservatives left us is taking time.

Does the Minister share my astonishment at the shadow Home Secretary’s argument given that the Conservatives wasted tens of millions of pounds on accommodation that could not be used and billions on hotels? The state of the asylum system that we inherited is unbelievable. Will the Minister commit to reforming that seriously dysfunctional system, including scrutinising asylum contracts with the providers when the break clause comes up next year?

We inherited a system in chaos and a series of asylum contracts worth billions of pounds that were 10 years long, with a break clause in 2026, so we are looking seriously at what we can do to get better value for public money in those contracts. The action on Stay Belvedere Hotels Ltd is one example of the work we are doing to drive better value in the contracts that we inherited. We will not tolerate the behaviour of subcontractors or contractors who do not provide good value for money, which is why we have insisted that Clearsprings Ready Homes removes Stay Belvedere Hotels Ltd from its supply chain.

I call the Liberal Democrat spokesperson.

It is a pleasure to be back in the Chamber to hear the shadow Home Secretary’s greatest hits of Conservative failures from the last Parliament, whether it be cuts to neighbourhood policing or the woeful handling of the asylum system under the previous Government, in which he was a Home Office Minister. Of course the Home Office should ensure that all asylum accommodation providers deliver value for money, safety and security, but tinkering with contracts will not change the fact that asylum hotels are a lose-lose. They eat up taxpayer money and leave local councils and communities to sort out the mess.

To pick dates at random, the share of asylum applications that received an initial decision within six months fell from 83% in the second quarter of 2015 to just 6% towards the end of the last Government’s time in office. When does the Minister think that the processing of applications will speed up so that the backlog will come down, communities such as mine will get the use of their hotels back and those granted refugee status can integrate and contribute to our economy?

I certainly agree with the hon. Lady that the shadow Home Secretary sounds like a broken record; we are well used to him running that argument in this place. I also agree that the key to dealing with hotels is to get the system back up and running from the chaos that it was in. I can tell the hon. Lady that asylum processing at first decision has ramped up considerably and we are getting through the backlog we inherited, but there is also a huge backlog by definition in the appeals system, partly caused by the legacy appeal—the dash to end the legacy system ahead of the fantasy Rwanda scheme beginning—which has led to a big backlog in appeals. We are looking to see what we can do about that, because it is important that we get a fast and fair system from end to end, and that includes appeals.

Because the previous Government lost complete control of our borders, the Leyland hotel in my constituency of South Ribble was closed down three years ago—yes, three years ago—and used for asylum seekers. There is a chronic undersupply of hotels in South Ribble, Chorley, Preston and central Lancashire. Can Ministers provide any indication at all of when the hotel will cease to be used as an asylum hotel? I am asked that question every single week.

I want to get out of hotels as quickly as is feasible. I will not name particular dates, because that is a pointless thing to do. We have to get through the appeals system and the first asylum processing system so that we can move people through the system much more quickly. We also need to continue our work on ramping up returns, which have seen a huge increase—the highest figures for the last five years—and we intend to continue with that process.

I call the Chair of the Home Affairs Committee.

The media are reporting that the earliest the contract can be broken is September next year. Can the Minister confirm whether that is the case? What liability does the taxpayer have for a contract ending today that we cannot get out of until September next year?

The right hon. Lady is talking about the prime contractor, which in this case is Clearsprings Ready Homes. As with the other two contractors, the break clauses are with it. We have approval or not of sub-prime contractors. Stay Belvedere Hotels Ltd is a sub-prime contractor, and as the Home Office we have withdrawn our approval for it to be in the supply chain.

The shadow Home Secretary has a nerve to come to this House and make that argument when we in the communities saw the damage that the contract he managed did to the public purse. Shall we revisit some of those greatest hits? His contract put councils and Clearsprings against each other, pushing up prices and making it impossible for local communities to help those housed there. He caused absolute chaos.

I have in my hand one of the letters that the hon. Gentleman’s Government were presenting to people who were refugees, giving them less than five days’ notice of where they were being moved, meaning that school places had to be hastily reorganised and children had to be hastily re-clothed because of the decisions he made on public funds. Absolutely no savings were made in the way in which he managed the contracts.

Will my hon. Friend make a commitment and a pledge to all of us who have had to deal with Clearsprings and its chaotic management that when she has the opportunity to renegotiate the contract, or possibly even break it for good, she will put public value for money first and not repeat the chaos of the shadow Home Secretary?

We are doing all that we can with the existing contracts to drive value for money, and we are also looking to pilot some other potential alternatives to supply.

I call the Father of the House.