Once upon a time in the United Kingdom, the government department known as the Home Office found itself in charge of providing accommodation for people seeking asylum. At first, the job was simple: find a safe place for someone to stay while their claim was processed.

But over time the task became much more complex. Rising numbers of arrivals meant more people needed places to live. In response, the Home Office began using large numbers of hotels to house asylum seekers on short-notice contracts.

At first the cost of this hotel accommodation appeared manageable. But soon the figures rose sharply. For example, in the financial year 2022-23 the Home Office spent about £2.28 billion on hotel accommodation.
House of Lords Library
In 2023-24 the total cost of asylum support was about £4.7 billion, of which around £3 billion was spent just on hotels.

Why did the cost go so high? Several reasons:

Hotels are much more expensive than other kinds of accommodation. According to one report, the average cost per night for hotel-based asylum accommodation in 2024-25 was around £170 per person, compared with about £27 per night for other types of accommodation.

The contracts were hurried and large in scale, and the Home Office was criticised for lacking strong commercial expertise.

The scale of the contracts was underestimated: a deal that was originally planned to cost about £4.5 billion over a decade is now expected to cost about £15.3 billion.

As the spending soared, many people began to say that the Home Office was squandering taxpayers’ money because:

Millions were being spent on accommodation that was intended to be “temporary” but often lasted for many months.

There was little evidence that the system was organised to obtain best value for money or to use resources efficiently.

Because the accommodation was so expensive, fewer funds were left for other support services which might have helped asylum seekers integrate or move into more stable living conditions.

In schools of thought among auditors and think tanks, this pattern came to symbolise waste: public money going into expensive hotel contracts, big overheads, and poor value, instead of lower-cost and more stable solutions.

However, the story does not end in despair. The Home Office and its ministers acknowledged the problem. Plans were announced to end the use of hotels for asylum accommodation by 2029, and reduce the huge costs involved.

In the final chapter, the government shifts focus. It begins investing in more permanent and cost-effective housing, spreads people into communities rather than clustering them in hotels, and works to reduce the backlog of asylum applications so that fewer people wait long periods in expensive accommodation.

Thus, what began as a case of misspending and growing bills becomes a turning point. The Home Office realises that wasting billions cannot continue. A new path is chosen: one that promises better value, better conditions for asylum seekers, and better outcomes for taxpayers.

And so the story closes: a system once riddled with waste takes the first steps towards reform — and while the bill remains large, the hope is that future spending will be wiser, fairer and more efficient.

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Vocabulary Notes

Accommodation
Meaning: A place where someone lives or stays, especially temporarily.
From the story: “The Home Office began using large numbers of hotels to house asylum seekers on short-notice accommodation contracts.”
Explanation: In this context, “accommodation” refers to places like hotels, hostels, or housing provided for people who do not have a home yet.
Similar words/phrases: housing, lodging, temporary shelter, living arrangements

Squander / Squandering
Meaning: To waste money, time, or resources in a careless or foolish way.
From the story: “Many people began to say that the Home Office was squandering taxpayers’ money…”
Explanation: The word shows strong criticism. It suggests that the money was not just spent, but spent badly, without good planning or benefit.
Similar words: waste, misuse, throw away, fritter away

Value for money
Meaning: Getting good quality or results for the amount of money spent.
From the story: “…there was little evidence that the system was organised to obtain best value for money…”
Explanation: When something doesn’t give value for money, it means you are paying too much for what you get.
Similar words/phrases: cost-effective, worthwhile, economical, a good deal

Backlog
Meaning: A large number of tasks or cases that are waiting to be processed.
From the story: “…and works to reduce the backlog of asylum applications…”
Explanation: A backlog happens when work arrives faster than it can be completed. In this case, many asylum claims were waiting for decisions.
Similar words: queue, pile-up, waiting list, accumulation

Temporary
Meaning: For a short time; not permanent.
From the story: “…accommodation that was intended to be ‘temporary’ but often lasted for many months.”
Explanation: Something temporary is meant to last only for a little while, but sometimes temporary situations last much longer than expected.
Similar words: short-term, brief, provisional, makeshift

Story written by ChatGPT AI.

Image created by ChatGPT AI.

CC Music: Drifting at 432 Hz – Unicorn Heads.

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