Asylum Support Contracts

Stuart C McDonald Excerpts

Wednesday 10th February 2016 Westminster Hall

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

It is an honour to serve under your chairmanship, Mr Stringer.

I, too, congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty) on securing this timely debate and on an excellent speech. Indeed, I am in the happy position of having agreed with pretty much everything that everyone has said so far—though I might yet disagree with myself.

The red doors and red wristbands have rightly grabbed a lot of headlines. As I said in the Chamber at the time of the urgent question on red doors asked by the hon. Member for Middlesbrough (Andy McDonald), such issues have to be looked at and dealt with urgently, but the real concern is that they are only the tip of the iceberg. What hon. Members have set out in the Chamber today about asylum accommodation confirms that to be the case. Members have spoken about the poor quality of accommodation, which is overcrowded and unsafe, inappropriate sharing, poor placement facilities, short notice evictions, issues of privacy and unannounced visits to the property, poor treatment by staff and many other problems.

Red doors and red wristbands were perhaps crass and eye-wateringly negligent rather than anything else, but the growing number and widespread nature of the complaints we are hearing suggest that we need to look much more closely at the operation of the contracts. There is also now a good spread of research that backs up the view of all hon. Members that there are fundamental problems with the operation of the existing contracts. It is worth looking briefly at the detailed evidence and research available.

Back in 2013 the Home Affairs Committee reported:

“The reports that we have received on the quality of the accommodation are extremely worrying...Problems cited in evidence include pest infestations, lack of heating or hot water, windows and doors that could not be locked, lack of basic amenities including a cooker, a shower, a washing machine and a sink and a general lack of cleanliness. Furthermore, many of those who submitted evidence cited difficulties in contacting housing providers and the slow resolution of problems.”

All that sounds incredibly familiar.

In 2014 a National Audit Office report criticised G4S and Serco for “poor performance” and

“still failing to meet some of their KPIs”.

The report found that the companies had taken on rented

“housing stock without inspecting it, and subsequently found that many…did not meet the contractual quality standards.”

The Public Accounts Committee later published a report concluding:

“The standard of the accommodation provided has often been unacceptably poor for a very fragile group of individuals and families.”

In 2014 the Scottish Refugee Council also undertook research into the extent and impact of accommodation issues in Scotland. In short, it pointed to poor standards, poor treatment by staff, poor information on rights and entitlements, and poor oversight by the Home Office of whether contractors are meeting obligations.

[Alison Thewliss (Glasgow Central) (SNP)]

Does my hon. Friend share my concern about the practices of some of the companies, Orchard & Shipman in particular, which turned up one night with no notice at 9.30 pm to evict one of my constituents? Only by good luck was he able to contact my office and prevent his eviction. Does my hon. Friend agree that such practices also need to be reviewed?

[Stuart C. McDonald]

I agree absolutely with my hon. Friend. That case fits in exactly with the narrative that we have heard from so many hon. Members today.

A final piece of evidence comes from an October 2015 investigation by Jonathan Darling at the University of Manchester, which highlighted similar problems, including increased distance between asylum seekers and providers, with buck-passing between contractors and subcontractors; breakdowns in communication between key partners; and considerable variations in dispersal accommodation quality, support and opportunities for community integration. In any view, all that is a considerable evidence base and a considerable cause for concern.

As hon. Members have noted, the Chair of the Home Affairs Committee, the right hon. Member for Leicester East (Keith Vaz), is always quick off the mark, so we have already heard evidence from G4S and its Middlesbrough subcontractors about the red doors incident, and yesterday we heard from the contractors responsible for the wristbands in Cardiff. There was extraordinary consistency between the two evidence sessions. Everyone in essence said, “Our performance under the contract is fine,” and, “We meet our key performance indicators”—indeed, staff at one contractor were actually paid bonuses for meeting those KPIs. “We are inspected,” they said, and Clearel even said that Home Office inspectors were well aware of the wristband scheme and had raised no complaints. Clearel also said, “We don’t get many complaints.” In fact, at one point the Clearel manager seemed to be saying that there had been about 19 complaints from 6,500 householders over a certain period of time, if I noted his evidence correctly.

I am not usually a cynical person, but what all that says to me is that we should also be concerned about the key performance indicators, the complaints system and the inspection system, because those processes are not flagging up red doors or wristbands and, too often, not flagging up the myriad other complaints that we have heard about today. The hon. Member for Cardiff South and Penarth made that point well.

[Jo Stevens]

On the KPIs, I understand from the evidence to the Home Affairs Committee yesterday that nine or 10 things are looked at monthly by the contract management board. An executive oversight board provides further scrutiny. Does my hon. Friend agree, however, that that system does not seem to be working at all, because nothing is picking up the problems that we have all been talking about this morning?

[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.