The Home Office contracts out the provision of housing and transport for asylum seekers. Under s95 of the Immigration and Asylum Act 1999, housing is provided to asylum seekers and their dependents who prove that they are destitute or are likely to become destitute.
There are currently six separate regional housing contracts, known as the Commercial and Operational Managers Procuring Asylum Support Services (COMPASS) contracts, with three providers: Clearel, G4S and Serco.
The COMPASS contracts commenced in 2012 for an initial five-year period and were extended for a further two years in 2017.
The COMPASS contracts are due to expire in 2019 and a procurement exercise is currently underway. They are to be replaced with the Asylum Accommodation and Support Services Contract (AASC) and the Advice, Issue Reporting and Eligibility Contract (AIRE), which will commence on 1 September 2019.