A billion-pound company tasked with providing asylum seeker housing and support posted profits out of Northern Ireland close to 300% more than a UK government imposed limit.
Mears has the contract to house asylum seekers in homes and hotels in the north, worth an expected £400 million over 10 years beginning in 2019.
The company made profits of 14% and 17% of revenue from its operations in the north over two years from September 2022. Under the contract signed in 2019, its overall profit was capped at approximately six percent.
Mears has a 10-year £400m contract to house asylum seekers in the north
There was no requirement for the company to reveal data for the first three years of the contract linked to the north, a National Audit Office (NAO) report published earlier this year noted.
Mears has no obligation to disperse those seeking asylum across different council districts in the north, unlike in Britain, according to the ten-year contract.
It has sourced housing for a large majority in two relatively small areas of Northern Ireland, according to figures seen by The Irish News. The areas where Mears rents a large amount of its accommodation have significant socio-economic issues.
According to its own figures, from two years ago, close to 1,700 of approximately 3,000 people were being housed in five postal code areas.
Mears, which posted revenues of over £1.1 billion in 2024, also manages asylum seeker housing and services in the north east of England and Scotland.
According to data supplied to the NAO, the company made a percentage loss of two per cent in Scotland in 2022/23 but did not provide other data in connection with the two regions over the two years to September 2024.
Following the NAO report, the Home Office carried out an audit and Mears was told to return £13.8m.
“Profit margins are contractually agreed at a level which demonstrates value for money for the taxpayer for the services provided and risks managed by Mears,” a spokesperson for the company said.
“The contracts include clauses for payments to be reconciled over time and for profits above a tendered contractual level to be shared back to the Home Office.
“We work on an open book basis with the Home Office and following an independent audit, Mears has made appropriate and agreed payments back to the Home Office.”
Overall, the three companies providing housing and support for asylum seekers across the UK posted profit margins totalling seven percent, the NAO reported. This was based on figures provided by the companies.
The Chimney Corner Hotel, Mallusk
Figures reveal the number being housed in hotels in Northern Ireland has dropped significantly, from close to 900 two years ago to just under 250 now. Three are still being used, with The Chimney Corner Hotel in Newtownabbey the focus of recent protests.
Overall, the number of asylum seekers has dropped from 3,220 in September 2023 to 2,535 in June this year. Proportionally, the north has among the smallest number among the regions of the UK.
In a recent statement, the company said: “Mears Group consults on all accommodation used for asylum dispersal with relevant partners in Northern Ireland, and we maintain active governance forums to discuss issues relating to procurement.
“We provide funding to local authorities to support them in meeting the needs of asylum seekers and host communities.
“Value for money, community cohesion and the well-being of those working and living in asylum accommodation will continue to be at the forefront of decision-making as we continue to explore options.”
Deputy First Minister Emma Little-Pengelly
(Liam McBurney/PA)
Deputy First Minister Emma Little-Pengelly, speaking last week, noted Mears was “exceeding the permitted profits margins”.
Ms Little-Pengelly said: “The Home Office, through Mears, currently has hundreds of homes on its books which are sitting empty.”
A spokesperson for Mears said: “There will always be a small number of properties that are empty at any time due to people leaving and entering the asylum system.
“We aim to keep empty properties to the minimum and there is an ongoing process of ensuring that when properties become available these are either prepared and allocated to new occupants, or are handed back if we do not require them.”