Asylum Seekers: Support and Accommodation

Paul Kohler Excerpts

Monday 20th October 2025 Westminster Hall

[Mr Paul Kohler (Wimbledon) (LD)]

It is a pleasure to serve under your chairship, Sir John. I congratulate the hon. and learned Member for Folkestone and Hythe (Tony Vaughan) on leading this important debate. I begin by declaring an interest: a previous donor to my election campaign has an interest in Stay Belvedere Hotels, a sub-contractor of Clearsprings, which is one of the three principal providers of asylum accommodation under the Home Office contract. I am also a member of the Home Affairs Committee, which recently completed an inquiry into asylum accommodation and will be issuing its report later this month. Although I will not be speaking in my capacity as a member of that Committee or revealing conclusions from the forthcoming report, I will make reference during my speech to evidence given to the Committee in open session that is already in the public domain.

As we have heard, the British taxpayer is wasting obscene amounts of money on the provision of asylum accommodation, not through generosity, but because of the incompetence and cynicism of the previous Conservative Government and the failure of the current Labour Administration, I am afraid, to address those deficiencies. The processing of applications was deliberately delayed under the Tories as they sought to make political capital from their flawed Rwanda scheme. According to the latest figures, nearly 90,000 applications are outstanding in respect of 110,000 people, with 60% having waited over six months and one third over a year. That represents a huge waste of public money, which is why my party is calling for the establishment of nightingale processing centres to clear the backlog within a year, paid for by an immediate and dramatic reduction in accommodation costs, which are far too high, particularly in respect of hotels.

Why are hotel costs so high? As I have seen, it is not as if the accommodation is luxurious, with two or three to a room in hotels that have turned into overcrowded hostels. The cost is so high because the Conservative Government agreed contracts that gave the three principal providers of asylum accommodation huge incentives to house applicants in hotels. The profit clawback clause in the contract was based on a fixed percentage of the cost of the accommodation provided. As the base cost of a hotel accommodation is up to eight times more expensive than other accommodation, providers could make up to eight times the profit before the clause kicked in. The private providers consequently had a huge disincentive to move applicants out of hotels after the pandemic ended, and that is why more than 30,000 are still in hotels. Despite what the Government say in the media, those numbers are again on the rise, with the latest figures showing an 8% increase in the number of applicants housed in hotels in the last 12 months.

The flawed accommodation contract is the reason why Clearsprings’ profits rose from £6,000 per employee in 2020 to a staggering £300,000 per employee in 2024. Yet, when I asked about the profit clawback clause during a Home Affairs Committee evidence session, it was clear that neither the Minister—not this Minister, I hasten to add, but his predecessor—nor her senior officials even knew how the profit clawback clause worked. Neither did they show any appetite for renegotiating the provision or any great enthusiasm for exiting the contracts, despite a break clause that becomes operative from next year.

In addition to the hugely inflated costs of providing accommodation, asylum seekers are an excessive drain on the public purse because, unlike in other countries, those awaiting a decision in the UK are banned from working for at least a year. In contrast, Canada allows applicants to begin working immediately, and Germany after three months. The UK stands as an absolute outlier in taking such a restrictive approach, despite evidence showing that early work boosts integration and the economy, reduces dependency, restores dignity and saves taxpayers money. The UK’s current position is indefensible, which is why the Lib Dems have joined with many groups in civil society in calling for an end to the ban.

The asylum system is failing both those who seek refuge and the public who fund it. Endless delays, costly hotels and flawed contracts provide neither justice nor value for money. We need faster processing, an end to the ban and an accommodation system that does not allow the private sector to make obscene profits. Finally, I remind hon. Members that undocumented migrants became an issue only with the advent of Brexit. Under the Dublin accord, would-be applicants could be returned to their first point of entry into the EU. In answer to the point that the Tories have kept making this afternoon, it acted as a huge disincentive to crossing the channel.

While the hon. Member for Clacton (Nigel Farage) fathered Brexit, his friends in the Conservative party delivered it and Labour sadly chose to be its nursemaid. They vowed to make Brexit work, but it appears today, in reports from across the Atlantic, that the Chancellor is finally seeing that that might not be possible. I asked the UK Border Security Commander at the Home Affairs Committee last week if he could give me just one example of how Brexit had secured our borders, and he was unable to do so, as can be seen on TikTok. That is why the only way to properly secure our borders is to re-engage with Europe.