Government to drop asylum hotel provider amid 'poor performance' concerns

25 March 2025, 06:31

The government is set to stop using an asylum hotel provider amid concerns of poor performance.

Stay Belvedere Hotels (SBHL) houses people waiting for asylum decisions in 51 hotels in England and Wales, as well as the Napier Barracks in Folkestone, Kent, which is due to close and be returned to the Ministry of Defence in September.

A statement from the Home Office said the contract, which was awarded in 2019, will end at the earliest opportunity in September 2026 after a review of all contracts to provide asylum accommodation.

The review raised concerns about the company's performance and behaviour, according to the statement, which said the safety and security of people staying and working in temporary accommodation was a government priority, as well as ensuring value for money.

Minister for border security and asylum Angela Eagle said: "Since July, we have improved contract management and added more oversight of our suppliers of asylum accommodation.

Read more: Labour’s latest U-Turn: Migrant hotels to reopen - costing taxpayers £4m per day

Read more: Number of asylum seekers awaiting appeal up by nearly 500% in two years

"We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure Home Office contracts deliver for the UK."

The Home Office said it remained committed to ending the use of asylum hotels. Labour previously pledged to end the use of hotels amid claims it cost the taxpayer £4m per day.

Back in July, the government announced the decision not to renew the contract for use of the Bibby Stockholm barge past January 2025.

Officials also said they were working to "put robust plans in place" to minimise disruption from the end of the Stay Belvedere Hotels (SBHL) contract.

Reports emerged on Tuesday that the company that ran the Bibby Stockholm was set to be handed the contract.

Labour's Stella Creasy says that pride in Paddington bear shows Britain's 'compassion' for refugees

Some 38,079 asylum seekers were in hotel accommodation as of the end of last year, down from a peak of 56,042 in September 2023.

Over 5,000 people have made the dangerous Channel crossing in small boats to seek asylum in the UK so far this year.

More than 36,000 made the same journey last year.