The three major companies behind the multi-billion pound asylum accommodation system have already made £383 million in profits through taxpayer-funded contracts
The companies which were awarded Home Office contracts under the Tories in 2019 to deliver asylum accommodation for ten years are on track for another record-breaking year of profits.
The three major companies behind the multi-billion pound asylum accommodation system have already made £383 million in profits through taxpayer-funded contracts, showing how the Tory decision to outsource to private companies has proved costly to taxpayers.
The Times reports that ‘nearly half of the profits have been made by Clearsprings Ready Homes, even though it is responsible for about 30,000 asylum seekers’, with eye watering profits also being made by Serco and Mears.
It adds: “Serco reported profits of £146 million in total for the first six months of this year, up 2 per cent compared to the same period in 2024. It puts the company on track to beat last year’s record high profits of £274 million.
“Mears reported a 5 per cent increase in its half-year results of £32 million, which also puts it on course to beat last year’s record of £64 million.”
Earlier this week, the Commons cross-party home affairs committee report, found that the Home Office squandered billions of pounds on asylum accommodation due to long-term mismanagement of a “failed, chaotic and expensive” system.
The contract value with private providers Clearsprings, Mears and Serco has tripled from £4.5bn to £15.3bn.
Basit Mahmood is editor of Left Foot Forward
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