The National Asylum Support Service has come under fire after it emerged that its failure to sign contracts with the Welsh local authority consortium has caused the group unsustainable financial costs.
According to the Welsh Local Government Association, the consortium has incurred £173,000 in costs. This will continue to increase by £13,000 a month unless action is taken.

The consortium, comprising 21 of Wales’ 22 councils, was established to negotiate with the NASS on a contract to provide 700 units of accommodation for asylum seekers. It has written to the service demanding progress.

By early last summer a draft contract had been drawn up between the consortium board and the NASS. But before it was signed, home secretary David Blunkett announced a review of the dispersal process and the service imposed a moratorium on new agreements.

The consortium claimed the NASS promised to give a decision on the contract several times but has yet to do so.

It warned that unless it receives confirmation of the proposed contract, it will withdraw its offer to contract with the asylum support service.

A Home Office spokesman said: “We suspended negotiations while reviewing the accommodation strategy and we intend to make a decision in the very near future.”