| Synopsis: |
In 2011-12, the cost to the Home Office of providing accommodation for asylum seekers was GBP150 million. In March 2012, the Home Office signed six new contracts called COMPASS (Commercial and Operating Managers Procuring Asylum Support) with three providers - G4S, Serco and Clearel - aiming to save around GBP140 million over seven years. In 2012-13, it achieved a saving of GBP8 million. Clearel was the only contractor to meet its original deadline. G4S and Serco struggled throughout the transition period to establish a robust and reliable supply chain of housing using existing housing providers and to source new houses. In three regions - the North West; Midlands and East of England; and North East, Yorkshire and the Humber - transition to the new contracts took longer than originally planned. Of the 20,000 asylum seekers housed by the Home Office at the time of transition to the new contracts, around 90 per cent were able to stay in their existing accommodation. Some of those who were asked to move received mixed messages, and communications were not routinely translated, risking gaps in understanding among those affected.Commercial negotiations are still underway over whether the contracts need to change, what additional costs have been incurred by the Home Office and what rebates to the Home Office from the providers should be applied for poor performance. The providers believe the information supplied to them by the Home Office during procurement was inadequate in some areas and has resulted in some of the difficulties now faced in running the service |