British taxpayers are being hit with housing bills for asylum seekers which are £25m more than the real market rate

BBC News:

The National Audit Office says because contracts are so inflexible, landlords are often paid for unoccupied rooms.

It said the National Asylum Support Service must take into account regional differences when negotiating rates.

Immigration Minister Tony McNulty said contracts were being redrawn and costs would be cut by a third this year.

The average cost of housing each asylum seeker is £703 a month, with short term accommodation even more costly at £846.

In all, £439m was spent by the service to house asylum seekers in 2003/4.

That was out of a total Nass budget of £1.07bn and consultants hired to look at the Home Office organisation concluded there was considerable scope for savings.

Of 23 contracts with landlords, six were being paid the full amount for empty properties and 11 more were receiving 70% to 90% of the rent.

"Existing arrangements are not sufficiently responsive to changes in the number of asylum seekers," the NAO report said.

"Any declines in demand are unlikely to lead to much of a reduction in cost as some accommodation providers are paid whether their properties are occupied or empty."

NAO chief Sir John Bourn said: "Providing suitable accommodation for asylum seekers is one of the most complex and difficult tasks facing the government.

"The Nass was stretched to the limit when the number of asylum seekers in accommodation reached over 67,000 in March 2003.

£10,000 a year to house single asylum seekers

Government pays £25m over market rates to put up refugees

Asylum-seekers’ housing bill costs the taxpayer £439m a year