The Home Office is ending a company’s contract to provide accommodation for asylum seekers.
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.
The decision to end the contract comes with immediate effect after a review of all contracts to provide asylum accommodation.
Asylum seekers currently living in SBHL sites will be moved to other housing across the asylum estate.
The review raised concerns about the company’s performance and behaviour, according to a Home Office 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.
SBHL is a sub-contractor of a wider Home Office agreement with provider Clearsprings, which was awarded in 2019 and is worth around £2 billion a year.
The Times has also reported that the Home Office will bring in the company which managed the Bibby Stockholm, Corporate Travel Management.
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.
“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, which is committed to ending the use of asylum hotels, said it was working to “put robust plans in place” to minimise disruption.
Housing minister Matthew Pennycook told Times Radio he would not provide “the specifics” of why the Home Office cancelled the contract but that “operational details are being worked out”.
He added: “We did need to review these disastrous contracts on asylum accommodation we inherited. We’re doing so to improve management and guarantee value for money for the taxpayer.”
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