We asked the Home Office whether it was still satisfied that it was getting value for money, given the costs of the accommodation and the fact that capacity was much lower than anticipated. The Home Office’s latest assessment of value for money from January 2024 suggests that, in total, large accommodation sites will cost £46 million more than the hotels they are intended to replace. The Home Office told us that it was confident that when all the sunk costs were excluded it was still cheaper ...

We asked the Home Office whether it was still satisfied that it was getting value for money, given the costs of the accommodation and the fact that capacity was much lower than anticipated. The Home Office’s latest assessment of value for money from January 2024 suggests that, in total, large accommodation sites will cost £46 million more than the hotels they are intended to replace. The Home Office told us that it was confident that when all the sunk costs were excluded it was still cheaper to continue with the large sites, and considered that it was correct to exclude sunk costs as projections should only be forward looking.25 However, it a Type: conclusion | Number: 15 | Response status: accepted Government response: 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 A raft of measures has been implemented to address weaknesses. The programme was recently restructured to deliver smaller sites, requiring lighter touch refurbishment and sup