Home Secretary promises reforms as crackdown on illegal working intensifies and costs of asylum hotels rise

The new Home Secretary Shabana Mahmood has admitted the Home Office is “not yet fit for purpose” and has repeatedly failed to rise to the scale of a range of crises – from illegal migration to asylum accommodation and internal leadership churn.

In an interview with the BBC during a police operation targeting illegal workers in south London, Mahmood last month acknowledged deep problems in the department he inherited, including contract mismanagement, staff retention and an overly complex enforcement system.

“The Home Office clearly deals with emergency and crisis issues on a regular basis, and for too long it has found itself unable to rise to the scale of the challenge,” Mahmood said. “We face a number of problems – but I am committed to delivering results.”

His comments come amid mounting pressure on the government to tackle both illegal working and the rising costs of asylum hotels, which a recent parliamentary report said has wasted “billions” of pounds.

Mahmood stressed that the government's crackdown on illegal employment is beginning to show results, with 8,232 arrests made last year – a 63% increase on the previous 12 months.

“Our enforcement of rules has been lacking – it was not good or strong enough under the previous government,” he said. “The law has not kept pace with changes in the way people find work. The numbers are still not where I would like, but they are moving in the right direction.”

Despite the improved data, BBC cameras following enforcement officers in London found no illegal workers during a two-hour spot check – critics say it is a reminder of the scale of the enforcement challenge in areas such as food delivery and logistics.

Ministers believe stricter workplace checks will reduce the “attraction factor” for people to enter the UK illegally, particularly by small boat crossing.

The Home Office's use of hotels to house asylum seekers has become one of the most toxic issues, politically and financially. Mahmood described them as “a blemish on our communities” and confirmed that she intended to relocate some migrants to military sites in Inverness and East Sussex by the end of the year.

“We are working quickly to make new sites available,” he said. “I hope to be at two new military sites by the end of the year. Discussions are well advanced in terms of planning those moves.”

Pressed on whether the new accommodation scheme would save taxpayers money, Mahmood made no promises – but said she was reviewing “all options” in existing hotel contracts, including possible break clauses next spring.

“I will need to look very carefully at the legal arrangements in those contracts,” he said, “and act in the best interests of our country and our taxpayers.”

Mahmoud's comments came just days after the mistaken release of Haddush Kebatu, an asylum seeker convicted of multiple sexual assaults who was later deported to Ethiopia. The case has reignited anger over the Home Office's handling of asylum accommodation and offender management.

Neil Hudson, Conservative MP for Epping Forest, said the community was “relieved” by Kebatu's deportation, but condemned the government's decision to reopen the Bell Hotel – where Kebatu was held – calling it “incredibly disappointing”.

“The hotel needs to be closed – it is in the wrong place, near a forest and two schools,” he said.

The opposition has also faced renewed attacks on its immigration stance. Conservative leader Kemi Badenoch said Labour's decision to scrap the Rwanda deportation scheme had “removed deterrence” and claimed there had been a 40% increase in small boat crossings since the policy was lifted.

Mahmoud did not respond directly to those figures, but said enforcement reforms and international cooperation – including a “one in, one out” arrangement with France – would be at the center of his migration strategy.

The Home Secretary's frank admission that the department is “still not fit for purpose” is the clearest sign yet that the new government wants to restructure the culture and systems of the Home Office. She confirmed that she is working closely with Antonia Romo, the department's newly appointed Permanent Secretary, to tackle inefficiencies and stabilize senior leadership turnover.

Analysts say Mahmood's challenge mirrors that faced by his predecessors: a department burdened with crisis management, political instability and overlapping responsibilities related to immigration, policing, counterterrorism and national security.

The question now is whether the new Home Secretary can succeed where others have faltered – transforming a beleaguered bureaucracy into a department capable of both strategic reform and operational delivery.

“This department has to be able to meet this moment,” Mahmoud said. “I'm under no illusions about how difficult it will be – but we have to get it right.”


jamie young

jamie young

Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.



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