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The head of the Home Affairs Committee has told the government to “get a grip” on the UK’s asylum accommodation system after a report found the Home Office repeatedly cut corners in its “chaotic” response to pressures.

The government has promised to end the housing of asylum seekers in hotels by 2029 amid mounting pressure over rising costs and a backlash in local communities.

But a damning report published by the Home Affairs Committee on Monday warns a promise to appeal to popular opinion without a clear plan for alternative accommodation risks “under-delivery and consequently undermining public trust still further”.

The report says: “The Home Office has undoubtedly been operating in an extremely challenging environment, but its chaotic response has demonstrated that it has not been up to the challenge.

“The 2026 break clause and end of the contracts in 2029 represent opportunities to draw a line under the current failed, chaotic and expensive system and move to a model that is more effective and offers value for money.”

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Meet those standing with the ‘dehumanised and degraded’

Dame Karen Bradley, chairwoman of the Home Affairs Committee, called for the government to “get a grip” on the system and learn from its mistakes, or it is “doomed to repeat them”.

She said: “The Home Office has not proved able to develop a long-term strategy for the delivery of asylum accommodation. It has instead focused on short-term, reactive responses.”

Expected costs of Home Office accommodation contracts for 2019-2029 have recently tripled from £4.5bn to £15.3bn, after a “dramatic increase” in demand following the COVID pandemic and rising numbers of those arriving by small boat among the factors.

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Why do people oppose asylum hotels?

The committee’s report also noted the Home Office failed to engage with communities and local residents who have “genuine concerns” over asylum hotels in their area, as well as people travelling from other areas “to promote divisive agendas or instigate disorder”.

MPs have pressed for the Home Office to prioritise closing hotels where there have been “significant community cohesion issues” – including in Epping, Essex, where demonstrations outside the Bell Hotel were held after migrant Hadush Kebatu was charged and later jailed for sexual assault.

The report added: “The lack of engagement and transparency has left space for misinformation and mistrust to grow, which in too many areas has led to tensions and undermined the ability of local partners to promote social cohesion.”

The Bell Hotel in Epping. Pic: PA
Image:
The Bell Hotel in Epping. Pic: PA

It also says the government has mismanaged contracts handed to hotels used to house asylum seekers. This includes a lack of fines for hotels that have poor performance and not claiming tens of millions of pounds in excess profits.

Read more:
Who says what on asylum hotels
Where can asylum seekers go if they can’t be housed in hotels?
A council-by-council breakdown of how many asylum seekers are in hotels

Protests in Essex. Pic: AP
Image:
Protests in Essex. Pic: AP

The committee has instead called for a future accommodation system to be based on fairness rather than cost alone, to improve communication with local communities and be flexible to meet unpredictable demands.

A Home Office spokesperson said: “The government is furious about the number of illegal migrants in this country and in hotels.

“That is why we will close every single asylum hotel – saving the taxpayer billions of pounds.

“We have already taken action – closing hotels, slashing asylum costs by nearly £1bn and exploring the use of military bases and disused properties.”

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UK takes ‘massive step forward,’ passing property laws for crypto

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UK takes ‘massive step forward,’ passing property laws for crypto

The UK has passed a bill into law that treats digital assets, such as cryptocurrencies and stablecoins, as property, which advocates say will better protect crypto users.

Lord Speaker John McFall announced in the House of Lords on Tuesday that the Property (Digital Assets etc) Bill was given royal assent, meaning King Charles agreed to make the bill into an Act of Parliament and passed it into law.

Freddie New, policy chief at advocacy group Bitcoin Policy UK, said on X that the bill “becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”

Source: Freddie New

Common law in the UK, based on judges’ decisions, has established that digital assets are property, but the bill sought to codify a recommendation made by the Law Commission of England and Wales in 2024 that crypto be categorized as a new form of personal property for clarity.

“UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” said the advocacy group CryptoUK. “Parliament has now written this principle into law.”

“This gives digital assets a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases,” it added.

Digital “things” now considered personal property

CryptoUK said that the bill confirms “that digital or electronic ‘things’ can be objects of personal property rights.”

UK law categorizes personal property in two ways: a “thing in possession,” which is tangible property such as a car, and and a “thing in action,” intangible property, like the right to enforce a contract.

The bill clarifies that “a thing that is digital or electronic in nature” isn’t outside the realm of personal property rights just because it is neither a “thing in possession” nor a “thing in action.”

The Law Commission argued in its report in 2024 that digital assets can possess both qualities, and said that their unclear fit into property rights laws could hamstring dispute resolutions in court.

Related: Group of EU banks pushes for a euro-pegged stablecoin by 2027

Change gives “greater clarity” to crypto users

CryptoUK said on X that the law gives “greater clarity and protection for consumers and investors” and gives crypto holders “the same confidence and certainty they expect with other forms of property.”

“Digital assets can be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes,” it added.