The Home Office should be split into two separate departments because it is “not fit for purpose,” following the squandering of billions of pounds on asylum hotels, the head of a Commons committee has said. Dame Karen Bradley, chair of the Home Affairs Committee, suggested one department should focus on border management while the other handles crime, arguing the two areas “need different skill sets.” Her remarks came after the committee found that billions of pounds of taxpayers’ money were wasted due to a “failed, chaotic and expensive” system implemented by the department.
The report found that ministers and officials “neglected” the day-to-day management of asylum accommodation providers, even as the cost of 10-year contracts tripled from £4.5 billion to £15.3 billion. This allowed contractors to make “excessive” profits at taxpayers’ expense, with the Home Office failing to enforce effective penalty clauses or clawbacks. Despite these failings, the department has begun tendering for new asylum accommodation contracts running from 2029 to 2036, with a potential extension to 2039.
When asked about splitting the Home Office, Sir Keir Starmer, the Prime Minister, said the Government had inherited “a huge mess” across departments, including the Home Office. He highlighted years under the previous government when asylum claims were not processed, leaving tens of thousands unresolved. Downing Street confirmed that the Government has no plans to break up the department. Currently, more than 32,000 migrants remain in around 200 hotels at an annual cost of £2.1 billion, or £145 per person per night, six times the cost of standard rented housing.
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Housing Secretary Steve Reed stated that hotels would be phased out “within the lifetime” of the Labour Government, with announcements on progress expected “within weeks.” The Government is considering modular buildings to establish accommodation quickly, including repurposing former military bases. Tory leader Kemi Badenoch acknowledged mistakes under the previous government but defended the Rwanda scheme, arguing Labour’s scrapping of it “removed the deterrence” for small boat crossings. She added that while not everything her party did was perfect, the approach offered a solution to the Home Office’s challenges.
