The UK government is considering ending multibillion-pound contracts with private firms that house asylum seekers, potentially shifting responsibility to local authorities, Andy Burnham indicated on Friday. These contracts, which span a decade and are set to expire in 2029, include provisions that allow an earlier termination, a possibility being explored this year.
Currently, private contractors such as Serco manage asylum seeker accommodation, placing individuals in hotels or houses in multiple occupation (HMOs) without prior consultation with local councils. Burnham, a prominent regional mayor, criticized this approach as a “top-down process,” stating that local authorities are often insufficiently involved or even left uninformed about accommodation arrangements.
When asked about the prospect of ending the contracts before their scheduled conclusion, Burnham said he was “open to a discussion with regional mayors” to explore alternatives. The move would grant local government entities greater control over the housing of asylum seekers, a change Burnham and his allies support to improve oversight and community engagement.
Despite this, experts have raised concerns over the practical challenges of terminating the contracts early. There are questions about whether local councils currently possess adequate accommodation capacity or the financial resources necessary to assume these responsibilities effectively.
Meanwhile, Home Secretary Shabana Mahmood is reportedly on course to fulfill a government commitment to close accommodation hotels for asylum seekers by 2029 when the existing agreements expire. Sources close to Burnham suggest he advocates for accelerating this timeline to address ongoing issues with the current system.
In related developments, the Home Office announced last month plans to expand the use of Ministry of Defence (MoD) sites for asylum accommodation. The government intends to house approximately 3,750 people at sites in Bicester, Oxfordshire; Barnham, Suffolk; and Linton-on-Ouse, North Yorkshire. There are also efforts underway to prolong the use of existing military sites in Crowborough, East Sussex, and Wethersfield, Essex, as part of the broader strategy to manage asylum seeker housing.
The government’s approach to asylum accommodation remains a contentious policy area, balancing operational capacity with calls for greater local authority involvement and accountability.