Another member of a regional housing consortium has threatened to end contract negotiations in a new blow to the government's asylum seekers dispersal policy
Oldham metropolitan borough councillors have described their disgust at the National Asylum Support Service's management of the refugee dispersal scheme, as only three of the promised contracts look set to be signed on time.

Meanwhile the government revealed it has again decreased its estimate of asylum seekers needing dispersed accommodation this year to 38,000.

Last month the Home Office revised the total from 60,000 to 44,000 (Housing Today, 21 September).

Oldham executive director of housing Hugh Broadbent said the council could not take the financial risk demanded by the renegotiation of housing terms and conditions set out for them in a meeting with NASS this week.

John Anchor, chair of Oldham council's housing committee, said NASS had also made interim arrangements with private landlords in Oldham without informing the council.

Oldham's protest leaves the North West's greater Manchester consortium in disarray as the group's lead authority Manchester, threatened to pull out of negotiations last week.

A Home Office spokesman said the overall figures had been changed because of revised estimates of need: "In advance you can never really know how many people will be taking up the vouchers only and how many will be taking up full accommodation."

Yorkshire and Humberside, and the East and West Midlands look set to sign their contracts by October 17, NASS confirmed.

But other UK consortia have expressed anger at NASS's approach. Robert Watt, co-ordinator for South Central Consortium, whose contract has been put on hold for the time being, said: "Agreements with consortia are being put on the shelf until NASS decides to dust them off and uses them. If we wind down our operations now, as at the moment we employ staff, it's taken resources, time and energy."

Meanwhile the LGA has written to the Home Secretary for assurances that local authorities' pre-contract costs will be reimbursed within the financial year.

A Home Office spokesman said: "The Home Office always said we would reimburse local councils for housing costs, sticking to agreed unit costs per applicant."