The UK Home Office Closes 11 asylum hotels this week as part of a big effort to end hotel stays.
This week, the Home Office will reveal that 11 hotels that are now sheltering asylum seekers will close. This is the first major withdrawal from the pricey temporary housing that grew during the pandemic. Labour ministers have committed to eliminate the practice completely before the next general election. They say that hotels are not good places to stay for a long time, cause problems in the community and waste public money. Around 30,000 people are still staying in almost 200 hotels, which costs taxpayers about £8 million a day. Officials believe that the number of people has dropped by 20% in the past year and that the most recent closures will save roughly £45 million a year. People who are being moved will be put in “basic” housing, which includes refurbished military sites and bigger reception centers that are better able to manage new arrivals. The department is telling vendors about a £10 billion, seven-year tender called the Future Asylum Contracts Accommodation (FACA). The next generation framework wants to bring in more providers, make performance conditions stricter, and—most importantly—stop hotels from being used all the time. Current suppliers are worried that adding more contractors could make things less efficient and raise costs again if economies of scale are lost.
For companies that move employees to the UK, the change means a harder stance on illegal immigration and a way to calm down the political debate over asylum. As officials try to persuade voters that the system is under control, employers should expect more monitoring of right-to-work checks and sponsorship compliance. Travel managers who move workers from high-risk areas may also feel more need to show that there is a real business requirement and that the plans for housing don’t put a strain on the state. In the near run, moving away from hotels might free up thousands of rooms in key business hubs. This is good news for organisations that are having trouble finding housing for conferences and projects. But charities that help people fear that big, institutional facilities could become “detention in all but name” if legal aid, healthcare, and integration programs don’t keep up with the changes.