08 July 2005
The government could save millions of pounds on housing asylum seekers in long-term accommodation, a watchdog's report claimed this week.
National Audit Office figures showed the price paid by the National Asylum Support Service for accommodation currently exceeds market rates by £25m.
Nass was established by the Home Office in 2000 to administer support arrangements for destitute asylum seekers.
In its report, National Asylum Support Service: the provision of accommodation for asylum seekers, the NAO said this could be addressed next year when Nass lets new contracts with accommodation providers.
The NAO admitted it was unlikely that the service could bridge the whole of the £25m gap because many properties might not be available at the market rate and because many landlords would not accept asylum seekers.
However, it still maintained there was 'considerable scope' for savings. More than £35m was saved in the termination of contracts with accommodation providers in the past financial year.
Nass paid more than £439m for accommodation in 2003/04. This was largely as a result of applications from asylum seekers rising from 27,800 in 2001 to nearly 67,200 in March 2003.
The NAO said the service 'was stretched to the limit'. However, the problem had been alleviated because the number of staff had been increased by more than 200 to 1,100 by last December.
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