The Home Office annual report for 2025/26 has exposed nearly £100 million in taxpayer waste, including £3.2 million in “fruitless payments” on cancelled deportation flights and a £20 million blunder where migrants were mistakenly refunded thousands of pounds.
Migrant Refund Error
Officials refunded migrants after they paid the Immigration Health Surcharge (IHS) for periods they were not entitled to. The IHS grants temporary access to the NHS for £1,035 per year. The report admitted: “Administrative error within the Immigration Health Surcharge (IHS) Reimbursement Scheme has resulted in some reimbursements being paid to customers for periods not aligned with the underlying IHS payment. Recovery options are being explored; however recoverability remains uncertain.”
Empty Hotel Contract
In another case, the Home Office spent £22.9 million on the Atrium Hotel in Hounslow, West London, under a nine-month contract signed “to meet an expected surge in asylum demand.” The hotel remained empty, described as a “catastrophic waste.”
Police Database Bungle
A further £35.2 million was lost on a bungled contract for the new Police National Database.
Political Reaction
Shadow Home Secretary Chris Philp said: “This is a catastrophic waste of taxpayers’ money by this inept Labour government. Since the election 76,000 illegal immigrants have crossed the Channel, more than under any other prime minister. The solution is to leave the ECHR which will enable us to deport all illegal immigrants within a week of arrival.”
A Department of Health and Social Care spokesperson said: “We have taken immediate action to stop any further incorrect payments. Enhanced checks and controls are now in place to prevent this happening again and we are working across government to safeguard public money. This has had no impact on frontline NHS services or patient care.”
