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17 December 2025

Mears Faces Scrutiny After Excess Profits Returned

A major UK asylum housing provider repays £13.8 million after exceeding profit caps, as families and politicians question living conditions and the impact on local communities.

On December 16, 2025, the UK’s asylum accommodation system found itself under renewed scrutiny after Mears, one of the country’s largest providers of housing for asylum seekers, was required to return £13.8 million in excess profits to the Home Office. The move followed revelations that Mears had exceeded the profit cap set out in its government contracts, with its highest profit rates recorded in Northern Ireland. The development has reignited debates about the human and financial costs of the UK’s approach to housing asylum seekers, and prompted fresh calls for independent investigations into the system’s failings.

According to BBC News and Belfast Live, the company’s profits in Northern Ireland peaked at 17%, nearly three times the contractual limit of around 6%. This spike was partly attributed to the region’s policy of not dispersing asylum seekers across various local authorities, which reduced Mears’ transport and administrative expenses. In total, Mears holds an estimated £2.5 billion in contracts across the UK, with £0.4 billion tied to Northern Ireland alone.

But behind the numbers lies a more troubling reality. Complaints from more than a dozen families and individuals who lived in Mears accommodation in Northern Ireland painted a stark picture of hardship and neglect. Former residents described conditions marked by insufficient food, inadequate heating, and poor hygiene. The BBC reported the case of "Ali" (not his real name), a father whose two children suffer from spinal muscular atrophy. He said that while living in a Mears-run hotel, his children’s health sharply declined. "Because of this space, because of the food provided for them, because the toilet wasn’t suitable for disabilities. We had to carry them, me and my wife," he told BBC News NI through an interpreter. "I’m so sad and angry because they’re providing service for vulnerable people. I have two vulnerable kids and this profit that they make and this money that they save, it was at their expense. They used us to make this money, and they affected my children’s health."

Another former resident, "Noor," described a similarly distressing experience. Placed in a Belfast hotel she claimed was unclean and moldy, Noor struggled to secure appropriate food for her teenage daughter, who uses a wheelchair and has complex dietary needs. When Noor requested special meals, she was told an occupational health assessment was required—a process with a five-month waiting list. Her daughter’s health deteriorated, and she was eventually diagnosed with malnutrition. Noor recounted, "What I hear now about them making all this money, it makes me so sad and angry that I was at that time begging them for eggs and milk and they wouldn’t provide it for my children."

Mears has pushed back against these claims, stating that all accommodation is approved and regularly inspected by the Home Office, and that its menus meet NHS nutritional standards. A spokesperson told the BBC, "We work to ensure that families with a child who has a disability or complex needs receive tailored support, making every reasonable adjustment possible." The company also emphasized that feedback on food has generally been positive and that any dietary requirements, including allergies, are recorded and acted upon. Mears further asserted that delays in health assessments were the responsibility of public bodies, not the company itself.

Still, the controversy has only grown. Liz Griffith, head of migration justice at the Law Centre NI, told the BBC that public perceptions of asylum hotel accommodation are often wildly inaccurate. "When you hear that kind of money you think maybe asylum seekers must be living in luxury. That is absolutely not the case," she said. She described the accommodation as "basic" and "spartan," adding that it was "absolutely not suitable" for families with children who have special needs.

On the political front, the fallout has been swift. Lisburn South DUP Alderman Paul Porter called for a full, independent investigation into the government’s asylum housing policy and Mears’ role within it. "Today’s news report into Mears Housing, a Home Office-contracted asylum accommodation provider, is deeply troubling and confirms concerns I have raised for years," Porter told Belfast Live. He argued that the policy has been "actively driving local families out of the private rental market, as properties are removed from general use and tied into long-term contracts for asylum accommodation." Porter has repeatedly demanded an inquiry into the impact of these policies on Northern Ireland’s most deprived communities, but said that "despite the growing evidence and mounting concern, nothing has been done."

Concerns have also been raised by other Northern Ireland politicians about the use of hotels as temporary accommodation for asylum seekers, particularly regarding planning permissions in council areas such as Antrim, Newtownabbey, Causeway Coast and Glens, and Ards and North Down. Mears itself has acknowledged the controversy and said it is working to end its use of hotels, with 246 asylum seekers still housed in such facilities in Northern Ireland as of mid-December 2025.

The Home Affairs Committee added its voice to the criticism, describing the wider system of asylum accommodation provision as one marred by "flawed contracts" and "incompetent delivery." The committee’s recent report highlighted that the expected cost of these contracts from 2019 to 2029 has more than tripled, soaring from £4.5 billion to £15.3 billion. It also took aim at the Home Office for the time it took to recoup the £13.8 million in excess profits from Mears, stating, "This money should be supporting the delivery of public services, not sitting in the bank accounts of private businesses."

Mears says it operates on an open book basis with the Home Office, and that the repayments were "appropriate and agreed" following an independent audit. The company insists it is committed to improving its services, phasing out hotel accommodation, and responding to feedback from residents and stakeholders alike.

The broader debate, however, shows no sign of abating. Critics argue that the current system channels vast sums of public money into private contracts while local housing pressures continue to mount, especially in deprived areas. As Alderman Porter put it, "They raise serious and unavoidable questions about value for money, accountability, and the human cost of these decisions. How many more local individuals and families must be displaced? How much more public money will be channelled into private contracts while local housing pressures continue to worsen?"

With calls for independent investigations growing louder and stories of hardship continuing to emerge, both the government and accommodation providers like Mears face mounting pressure to overhaul a system that, for many, seems to be falling short of its promise to protect some of society’s most vulnerable.