LOCK-change row firm Serco has lost the contract to provide housing for asylum seekers in Scotland – but will still serve parts of England.
The contractor – whose chief executive Rupert Soames is the brother of Tory MP Nicholas Soames – was taken to court last year over moves to evict “failed” asylum seekers from their homes in Glasgow.
The move prompted public outcry and political condemnation last summer, but Serco, which repeatedly said it was not making money on the contract, said it could not afford to allow those affected to stay.
That clamour followed criticism from refugee charities, faith organisations and campaigners over the treatment of asylum seekers and the quality of accommodation used over a seven-year period.
Now the Home Office has announced that it will no longer use the multinational in Scotland.
Instead, housing and social care provider Mears group will take up the role.
The deal also covers Northern Ireland as well as north-east England, Yorkshire and Humberside and is worth £1 billion.
Meanwhile, Serco has won contracts for the England’s north west, Midlands and east regions, with a value of £1.9bn, while Wales and the south of England will be served by Clearsprings Ready Homes.
Beginning in September, all deals last 10 years.
Immigration Minister Caroline Nokes said: “These new contracts will make sure that asylum seekers are treated with dignity and respect in safe, secure and suitable accommodation.
“They will deliver compassionate support through a new integrated service and will make the asylum system more accessible and easier to navigate.
“We consulted extensively with local authorities and NGOs to make sure that the contracts not only protect vulnerable asylum seekers but also deliver value for money for the taxpayer.”
The Scottish Refugee Council’s Graham O’Neill welcomed the change, saying: “Providing housing to people in need is an essential public service and the rights, needs and dignity of people seeking refugee protection must be at the heart of the work of the Mears Group as they take over from Serco.”
Glasgow City Council had hoped to bid itself, but said it was unable to meet the conditions stated.
Asylum seeker housing was previously delivered through the public sector and councillor Jennifer Layden said: “It remains our position that by far the best outcome for both asylum seekers and receiving communities across Glasgow would be for the city council to be fully funded to provide a holistic, welfare-based asylum service, inclusive of accommodation.”
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