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Value of asylum housing contracts doubles after criticism of conditions Value of asylum housing contracts doubles after criticism of conditions
(about 1 month later)
Home Office invites companies to bid for £3bn to £4bn worth of contracts, after Serco and G4s made losses on 2012 deal
Alan Travis Home affairs editor
Thu 23 Nov 2017 19.33 GMT
Last modified on Thu 23 Nov 2017 19.43 GMT
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The Home Office has quietly invited private companies to bid for £3bn to £4bn worth of contracts to house and support tens of thousands of asylum seekers, refugees and destitute failed asylum seekers in Britain.The Home Office has quietly invited private companies to bid for £3bn to £4bn worth of contracts to house and support tens of thousands of asylum seekers, refugees and destitute failed asylum seekers in Britain.
The value of the new asylum housing contracts over 10 years is more than double the £150m-a-year cost of the existing contract when it was first awarded in separate lots to G4S, Serco and Clearsprings in 2012.The value of the new asylum housing contracts over 10 years is more than double the £150m-a-year cost of the existing contract when it was first awarded in separate lots to G4S, Serco and Clearsprings in 2012.
The improved contract follows trenchant criticism from the Commons home affairs select committee in a report 10 months ago which branded conditions in asylum housing “disgraceful” after reports of infestations of mice, rats and bedbugs.The improved contract follows trenchant criticism from the Commons home affairs select committee in a report 10 months ago which branded conditions in asylum housing “disgraceful” after reports of infestations of mice, rats and bedbugs.
A “pipeline” document inviting companies to bid says providers should supply “a service of which they are proud” that compares to services offered to UK nationals and that keeps asylum seekers and refugees safe and “orientates them to live in their communities”.A “pipeline” document inviting companies to bid says providers should supply “a service of which they are proud” that compares to services offered to UK nationals and that keeps asylum seekers and refugees safe and “orientates them to live in their communities”.
The management of the asylum housing contracts has attracted national controversy, with issues including some asylum seekers being required to wear coloured armbands in Cardiff and their homes being easily identifiable because their front doors were painted a uniform red.The management of the asylum housing contracts has attracted national controversy, with issues including some asylum seekers being required to wear coloured armbands in Cardiff and their homes being easily identifiable because their front doors were painted a uniform red.
The new contract will be awarded in seven separate lots to provide housing, transport and support services in each of the seven UK Visas and Immigration regions, including Scotland and Northern Ireland.The new contract will be awarded in seven separate lots to provide housing, transport and support services in each of the seven UK Visas and Immigration regions, including Scotland and Northern Ireland.
The closing date for bids is 17 December and the 10-year contracts will start in September 2019. The tender documents say the lots will be awarded equally on price and quality. Local capacity to support asylum seekers, familiarity with community cohesion and proximity to local authorities and voluntary groups are listed as some of the key considerations.The closing date for bids is 17 December and the 10-year contracts will start in September 2019. The tender documents say the lots will be awarded equally on price and quality. Local capacity to support asylum seekers, familiarity with community cohesion and proximity to local authorities and voluntary groups are listed as some of the key considerations.
The home affairs committee found that the companies involved in the current contracts had made huge losses on them because they were now required to house many more asylum seekers and refugees than the original price allowed.The home affairs committee found that the companies involved in the current contracts had made huge losses on them because they were now required to house many more asylum seekers and refugees than the original price allowed.
The number of asylum seekers whose cases were officially regarded as “work in progress” rose from 37,381 in 2012 to 77,440 in 2016. Serco warned at one stage that its losses could reach £112m if the contract was extended to 2019 without revised terms.The number of asylum seekers whose cases were officially regarded as “work in progress” rose from 37,381 in 2012 to 77,440 in 2016. Serco warned at one stage that its losses could reach £112m if the contract was extended to 2019 without revised terms.
When better terms were offered it said its losses could potentially be £20m lower but it would still be “heavily loss-making”. The company claimed in February 2016 that it received £300 a month from the Home Office to house and support an asylum seeker, but its average monthly costs were £450.When better terms were offered it said its losses could potentially be £20m lower but it would still be “heavily loss-making”. The company claimed in February 2016 that it received £300 a month from the Home Office to house and support an asylum seeker, but its average monthly costs were £450.
In March 2016 the chief executive of G4S, Ashley Almanza, said of the 2012 deal: “Were this contract before us today we would not be entering into it.” G4S, which has also sustained very heavy losses, declined to comment on whether it would now bid again.In March 2016 the chief executive of G4S, Ashley Almanza, said of the 2012 deal: “Were this contract before us today we would not be entering into it.” G4S, which has also sustained very heavy losses, declined to comment on whether it would now bid again.
A Home Office spokesperson said: “The provision of accommodation for asylum seekers in the UK is delivered by a number of commercial providers. The current contracts are due to come to an end in 2019.A Home Office spokesperson said: “The provision of accommodation for asylum seekers in the UK is delivered by a number of commercial providers. The current contracts are due to come to an end in 2019.
“The publication of the contract notice informs the market that procurement has begun and gives interested organisations detail about the future asylum accommodation and support contracts.”“The publication of the contract notice informs the market that procurement has begun and gives interested organisations detail about the future asylum accommodation and support contracts.”
An official Home Office response two weeks ago to the select committee report said improvements had been announced in December 2016 that met many of the MPs’ criticisms.An official Home Office response two weeks ago to the select committee report said improvements had been announced in December 2016 that met many of the MPs’ criticisms.
The Home Office said work on the new arrangements for asylum accommodation and support after the end of the current contracts in 2019 had been under way since the autumn of 2016.The Home Office said work on the new arrangements for asylum accommodation and support after the end of the current contracts in 2019 had been under way since the autumn of 2016.
“The aim of this work is to deliver a sustainable, efficient and high-quality end-to-end asylum accommodation and support system which works for all parties, and which effectively safeguards the vulnerable,” it said.“The aim of this work is to deliver a sustainable, efficient and high-quality end-to-end asylum accommodation and support system which works for all parties, and which effectively safeguards the vulnerable,” it said.
Immigration and asylumImmigration and asylum
SercoSerco
G4SG4S
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