Mears repays £13.8m to Home Office over asylum accommodation profits exceeding limits
Mears has repaid £13.8 million to the Home Office after profits on asylum accommodation contracts exceeded permitted limits. The profit cap is approximately 6% across UK contracts, but Mears' operations in Northern Ireland reached up to 17%, attributed to the lack of dispersal of asylum seekers by local authorities there.
Around 246 asylum seekers in Northern Ireland are housed in Mears hotels, although the company states it is moving away from hotel-based accommodation. Residents have alleged that profits were earned at their expense, citing inadequate food, heating, and hygiene, with some cases linked to the deteriorating health of disabled children.
Mears responded by stating that the repayments were appropriate and agreed upon. The company emphasized that all accommodation is approved and regularly inspected by the Home Office, menus meet NHS standards, and dietary needs are recorded.
Mears operates under open-book contracts with the Home Office and undergoes independent audits. A Home Affairs Committee report criticized the system as flawed and noted that costs have risen dramatically from £4.5 billion to £15.3 billion between 2019 and 2029. Mears holds about £2.5 billion in contracts, of which £0.4 billion relate to Northern Ireland.
Quarterly surveys conducted by the Home Office of residents in Mears accommodation show around 90% overall satisfaction.
