The House of Commons Public Accounts Committee (PAC) opened oral evidence on 19 January into whether the Home Office’s proposed ‘new asylum model’ can realistically shave £1 billion a year from accommodation costs by 2029. Second Permanent Secretary Simon Ridley faced questioning over the plan to shift tens of thousands of applicants from hotels into large-scale accommodation centres while accelerating case-work.(committees.parliament.uk)
Lawmakers pressed officials on the risk of simply relocating costs rather than reducing them, citing previous failures to cut backlogs. The National Audit Office estimates that legacy cases still exceed 90,000 despite high-profile ‘clearance drives’. MPs also queried how the Home Office will co-ordinate with the Ministry of Justice on appeals capacity and with local authorities on integration or removal pathways.
![Parliament scrutinises £4 billion asylum-reform plan in high-stakes Public Accounts Committee hearing]()
For employers running refugee-to-work schemes, the hearing matters because processing speed and permission-to-work rules will dictate future talent pools. A delayed or under-funded system could prolong periods in which asylum applicants are unable to accept employment offers, complicating ESG hiring initiatives.
The PAC will publish recommendations in March. If it concludes that savings projections are optimistic, the Treasury could insist on scaled-back accommodation-centre contracts, delaying roll-out and extending hotel dependency into 2027.
Lawmakers pressed officials on the risk of simply relocating costs rather than reducing them, citing previous failures to cut backlogs. The National Audit Office estimates that legacy cases still exceed 90,000 despite high-profile ‘clearance drives’. MPs also queried how the Home Office will co-ordinate with the Ministry of Justice on appeals capacity and with local authorities on integration or removal pathways.
For employers running refugee-to-work schemes, the hearing matters because processing speed and permission-to-work rules will dictate future talent pools. A delayed or under-funded system could prolong periods in which asylum applicants are unable to accept employment offers, complicating ESG hiring initiatives.
The PAC will publish recommendations in March. If it concludes that savings projections are optimistic, the Treasury could insist on scaled-back accommodation-centre contracts, delaying roll-out and extending hotel dependency into 2027.
