Prime Minister Andy Burnham wants to row back the era of private companies running public services. Britain’s asylum system presents a difficult target. From processing new asylum seekers to deporting failed applicants, firms including MTC Group, Clearsprings Ready Homes and Mitie Group play a dominant role in a system that cost an estimated £4.9 billion ($6.6 billion) in 2024-25.
The majority is spent on accommodation and support for people while their bids to remain in the U.K. are being assessed. Critics say housing contracts have wasted public money and placed an unfair burden on poorer communities, prompting many to call for local councils to be given responsibility for sourcing homes. However, while Burnham has signaled he supports the idea, a quick transition appears unlikely.
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