Five of the seven asylum accommodation contracts have exceeded their profit-share thresholds

Reported profit has averaged 7% on the asylum accommodation contracts — at the lower end of the Home Office’s original 5% to 13% estimate, but higher than the operating profit those suppliers report in their own accounts, which runs at 3% to 7%.

Five of the seven contracts have exceeded their profit-share thresholds. Those thresholds differ between contracts, and passing one means a share of profit is returned to the department. The Home Office commissioned a third party in 2024 to audit how suppliers report performance and declared profit, and expected to agree the amount to be returned once that finished.

Hotels may be the more profitable form. Data reported by suppliers suggests hotel accommodation is more profitable than other forms — and hotels accounted for 76% of contract cost. The Home Office has worked to raise occupancy from 75% to 80%, which it estimates avoided £109 million of hotel spending.

These are the suppliers’ own reported figures, audited by the department rather than by us.

Figures cited from The Home Office’s asylum accommodation contracts, National Audit Office, May 2025.