UK ministers are keen to apply break clauses in contracts for asylum accommodation with outsourcers including Serco and Mears in an effort to renegotiate terms or end the deals.

Home Office ministers were “shocked” by the profits made by Serco, Mears and Clearsprings Ready Homes on multiyear contracts signed in 2019 and hope to use break clauses in 2026 either to revise the original terms or terminate, said two people briefed on their thinking.

“They [the companies] made way more than was originally envisaged because the asylum system became so out of control,” said one of the people. The Home Office was regularly bidding against other Whitehall departments for hotel and dispersal accommodation, driving up prices, the person added.

In 2019, the previous Conservative government overhauled the procurement of asylum accommodation. It said the changes would ensure vulnerable asylum seekers had access to support and set clear requirements for housing conditions, although human rights groups have continued to warn that some asylum accommodation remains unsafe.

In the same year, 10-year contracts for asylum accommodation were awarded to Serco in the Midlands, North West and east of England, Mears in the North East and Yorkshire and the Humber, and Clearsprings in the south of England.

The contracts, which contained break clauses after seven years in 2026, will cost the state about £4.6bn in total, according to government procurement data provider Tussell. Tussell’s figures also include Mears contracts in Scotland and Northern Ireland, and a Clearsprings contract in Wales.

The three companies do not specify the returns made on the contracts. But last year Clearsprings, whose principal source of business is asylum contracts with the Home Office, reported an increase in operating profit to £62.5mn, from £1.9mn in 2019.

Its profit margin — the proportion of revenue that is profit — rose from about 3.5 per cent to 5.8 per cent in the same period.

In corporate filings last year, Mears said its contract brought in about £440mn in revenues — up £90mn on the previous 12 months — and accounted for 40 per cent of total revenues. In 2019, the company said it expected the contract to account for roughly 15 per cent of total revenues.

Since 2021, Mears’ profits have jumped 83 per cent to £47mn, and last year it warned that losing the asylum contract in 2026 was a “principal risk” to its business. Shares in London-listed Mears closed down 13 per cent on Wednesday at £3.32, the lowest since February.

Serco won asylum contracts worth £1.9bn in 2019, the company’s largest-ever contract, and now accommodates more than 30,000 men, women and children.

It reported a 5 per cent increase in overall profits between 2022 and 2023 to £249mn, and this year noted that profit margins on UK and European work had increased from 3.4 per cent in 2022 to 6.8 per cent in the first half of 2024.

Serco operates across a number of sectors and in different countries, but when it increased its profit guidance last year, the company said the decision was in part because of “robust demand for immigration services”.

Joe Brent, analyst at investment bank Panmure Liberum, said UK asylum contracts had been a “source of profit growth” to Serco.

“If Labour succeeds in reducing the company’s level of returns considerably, it will reach a point where Serco goes elsewhere,” Brent said. “There aren’t many contractors that can deliver this at scale. It’s risky, intense, complex work, where capital is deployed and they have to deliver a return.”

The government has vowed to end the use of hotels and mass accommodation sites to house asylum seekers, but it has struggled to reduce reliance on hotels even as some large-scale sites, such as the Bibby Stockholm barge, are set to close.

The government has been spending more than £8mn a day on hotel accommodation for asylum seekers, and in recent weeks ministers have contacted hotel providers to procure extra spaces after a rise in small boat Channel crossings.

The Home Office did not respond to a request for comment.

Serco said it had won its contracts “following a competitive tender to ensure that value for money was achieved for the taxpayer”.

“We make low single-digit returns across our UK government business, and in the previous asylum accommodation contracts we lost more than £100mn,” it added, referring to contracts that ran between 2012 and 2019.

Mears said its profits related to performance across all activities, not just asylum contracts, and that its improved financial performance since 2021 had “come from an artificially low base because of the impacts of the pandemic”.

The company also said its contracts with the government stipulated caps on the level of profits the company could make and arrangements to return “surplus profit” to the client. It did not say how much profit if any it had returned to the Home Office since 2019.

“Mears has, over recent years, returned to operating margins that would be recognised as appropriate in the sectors in which it operates . . . in line with the historical performance of the group,” it added.

Clearsprings declined to comment.

HUNDREDS of struggling pensioners could receive a one-off voucher worth £100 to help with their energy bills this winter.

It follows the government’s decision to make winter fuel payments means-tested.

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The Older Adults Winter Support programme by Peterborough City Council is aimed to help around 1,000 of the most vulnerable pensioners in the area.

The scheme, which is funded by the Household Support Fund, will be accepting applications until March.

To be eligible, applicants must be aged 65 or over and live alone or with another person aged 65 or over.

They must have a household income of less than £320 per week, with savings of £10,000 or less – with proof provided.

And they must not be eligible for Pension Credit.

To apply for the scheme, which is run in partnership with Age UK, pensioners should contact the charity’s Cambridgeshire and Peterborough branch.

The charity will then assess each claim, and suggest alternative forms of winter support if applicable.

Labour councillor Alison Jones said: “With winter just around the corner, we wanted to do something to specifically help older people who may be struggling and feeling vulnerable right now.”

Many other councils around the country are using the Household Support Fund to give one-off payments to vulnerable pensioners.

For example, Norfolk County Council is giving out one-off payments of £120.

Charities are also giving out gadgets such as air-fryers and heated blankets to help those struggling with energy bills.

Labour’s decision to scrap winter fuel payments was announced by Chancellor Rachel Reeves earlier this year.

However, the support will still be available to those on certain benefits – including Pension Credit, income support, tax credits and Universal Credit.

The Department for Work and Pensions (DWP) recently confirmed that eligible households will receive payments from November through to December.

To apply for the Older Adults Winter Support, call 01733 564 185 or email pbws@ageukcap.org.uk.

What is the Winter Fuel Payment?

Consumer reporter Sam Walker explains all you need to know about the payment.

The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.

Most who are eligible receive the payment automatically.

Those who qualify are usually told via a letter sent in October or November each year.

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If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.

You’ll qualify for a Winter Fuel Payment this winter if:

• you were born on or before September 23, 1958
• you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
• you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit

If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

• you live in Switzerland or a EEA country
• you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK

But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.

This is because the average winter temperature is higher than the warmest region of the UK.

You will also not qualify if you:

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• are in hospital getting free treatment for more than a year
• need permission to enter the UK and your granted leave states that you can not claim public funds
• were in prison for the whole “qualifying week”
• lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance

Payments are usually made between November and December, with some made up until the end of January the following year.

AN UNDERRATED museum in the north of England is home to a one-of-a-kind underground Christmas attraction.

Earlier this year, research from luggage storage company Bounce named the National Coal Mining Museum in Wakefield as one of the country’s best hidden gem attractions.

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Located in West Yorkshire, the National Coal Mining Museum is housed at the former Caphouse Colliery, which dates back to the 18th century.

The museum opened to the public in 1988 and offers visitors a deep insight into the life and work of coal miners, preserving the rich industrial heritage of the region.

Later this year, the National Coal Mining Museum will host a Christmas event called Santa Underground.

Visitors will descend 140m underground where they’ll head to a “one-of-a-kind” Christmas grotto to meet the big man himself.

At the event, Children will receive an age-appropriate gift and a certificate.

Previous visitors to Santa Underground have raved about the attraction, with one person writing on TripAdvisor: “I can’t write I can’t fault anything.

“The staff were fantastic and friendly, the underground tunnel to Santa’s grotto was magical and the grotto itself was enchanting.

“Santa spent a lot of time talking to the children and going underground in an original miners’ lift was very exciting.”

Tickets to Santa Underground cost £10 for a full-paying adult and £13 for kids.

Named one of the UK’s best hidden gem attractions, there are plenty of other things to do at the National Coal Mining Museum.

Set across two former coal mines, visitors can learn about over 200 years of coal production.

On volunteer-led underground tours, visitors will hear stories from former coal miners.

There are above-ground attractions too, including a nature trail, an adventure playground and a pony discovery centre where visitors can meet ponies.

The battery-powered Paddy Train is another popular attraction at the sprawling museum.

Previously used to ferry miners around the pit, museum-goers who visit during peak hours can ride on the train from Caphouse to Hope and back again.

Entry into the National Coal Mining Museum is free, although a £5 donation is encouraged. Underground tours cost an additional £7.50.

Despite not being well-known as a tourist destination, there are plenty of other things to do in Wakefield.

One of those is Hepworth Wakefield, an art gallery that overlooks the River Calder.

Named after artist Barbara Hepworth, the award-winning museum is home to displays of artwork like sculptures and still life paintings.

Wakefield Cathedral is another popular attraction in the city, with the tallest church spire in Yorkshire.

Other nearby attractions include Diggerland – one of the strangest theme parks in the UK.

Visitors can spend the day riding dumper trucks around a gravel pit, digging stones out of a hole with a full-sized digger and riding around a muddy concourse while seated in an enormous bucket.

Wakefield is a 70-minute drive from Manchester, and it’s a 20-minute drive from Leeds.

Here are the 25 best ice rinks to visit in London and the South East.

And, these are the best Christmas markets to visit in the UK.

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The list of Indian cities ranked for digital readiness, unveiled at the India Mobile Congress on Wednesday afternoon threw up some surprises. Bengaluru and Gurugram, or for that matter, the heavy duty metros of Delhi and Mumbai, were conspicuous by their absence in the top 10.

ALSO READ: Digital India has nudged Indians into adopting new technology

The list, compiled by OpenSignal, looked at the ten most populous cities in the country, as well as designated smart cities. The topper turned out, ironically enough, to be Srinagar. The very capital of Jammu & Kashmir that has been more associated with internet shutdowns that superior internet quality.

But that evidently is the verdict of OpenSignal, the world’s leading evaluator of mobile and network quality. It looked at three parameters – 4G/5G availability, consistent quality, as well as download speeds, to come up with the winner.

ALSO READ: Google doubles down on AI that talks in an Indian tongue

Interestingly, none of the metro cities made it into the top 10, with Agra taking the second spot, followed by Faridabad in Haryana, which is technically in Delhi BCR, though. The highest metro placement is Delhi at No.13, Chennai at No.19 and Kolkata at No.20 (Howrah comes in at No.21)

For the larger Mumbai metropolitan region, Kalyan-Dombivali fared better than main Mumbai city, coming in one position ahead of the maximum city at No. 26. Navi Mumbai came in at a lowly No.31 (Vasai-Virar at No.49).

ALSO READ: A global leadership opportunity in the AI age beckons India

Bengaluru, the IT capital of the country, shockingly came at just No. 34, despite being a designated smart city to boot.

After Srinagar, Agra and Faridabad in the top three, the following cities rounded out the top 10, in order: Jaipur, Patna, Ranchi, Meerut, Madurai and Dhanbad, with Ahmedabad and Coimbatore jointly sharing the No.10 spot.

The data for the survey was collected by OpenSignal between February and July-end of this year.