The companies supplying accommodation for asylum seekers are on track for another year of huge profits.
The three main providers which have agreements with the Home Office have made a total of £383million since contracts began in 2019.
They include Clearsprings Ready Homes, Serco and Mears.
According to a Home Affairs Committee report on the Home Office's management of asylum accommodation, Clearsprings estimate the value of their 10-year contract for the south of England has increased tenfold since 2019 to £7billion.
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The Government has pledged to close asylum hotels by 2029
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The firm has not published its accounts since January last year, when it recorded a profit of more than £91million.
In the first half of this year, Serco meanwhile recorded a profit of £146million, up two per cent from 2024.
Last year, the company recorded a profit of £274million.
Serco suggested it expects to see reduced profits this year from asylum accommodation due to the Government's pledge to reduce migrant hotels.
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Expected costs of Home Office accommodation contracts for 2019-2029 have tripled from £4.5billion to £15.3billion
| PAMears Group, which is responsible for asylum accommodation in the North East, Yorkshire and the Humber, Scotland and Northern Ireland, recorded a profit of £32million in its half-year accounts for this year, a five per cent increase from 2024.
It said it expects revenues from housing migrants will "normalise" through to the end of the next financial year as hotels are closed.
Under the terms of the contracts, the Home Office can "claw back" money made by the three providers if they exceed a certain profit.
In its report of the management of asylum accommodation, the Home Affairs Committee said Mears Group is expected to repay around £13.8million, while Clearsprings is set to pay back about £32million.
It however said "both Mears and Clearsprings said that they had not yet repaid the money".
Between 2019-2020, the Home Office spent £739million on asylum support.
This increased substantially in 2024-2025, when it spent £4billion, of which £2.1billion was spent on hotels.
Expected costs of Home Office accommodation contracts for 2019-2029 have tripled from £4.5billion to £15.3billion, following what the Home Affairs Committee called a "dramatic increase in small boat arrivals".
The Government has pledged to close asylum hotels by 2029 and has turned to military bases to house migrants instead.
On Monday, the Home Office confirmed two barracks in Scotland and southern England would be used to house about 900 men temporarily.
Sir Keir Starmer said he wants to see asylum hotels closed "as quickly as possible" and is "bearing down on this every day of the week".
The plans will see men housed at Cameron Barracks in Inverness and Crowborough Training Camp in East Sussex.
The Prime Minister’s official spokesman said costs "will vary site by site".
Crowborough Training Camp in East Sussex is one of two barracks which will be used to house asylum seekers temporarily
|PA
The spokesman continued: "Military sites can provide proper security, health and wellbeing standards, and that is what we’re intent on delivering, instead of luxury sites, as we’ve seen over recent years."
Asked if this meant the Government thought barracks were a better option even if costs were higher, the spokesman replied: "I think there’s a number of issues in play.
"The costs will vary site by site, and as I say, we are looking at these initial two sites and if they will prove the concept, and if successful we’ll look at scaling that up.
"But this is also a core issue of public confidence. The public is very clear it does not want asylum seekers housed in hotels, and neither does the Government."
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