Asylum-seekers have been left in “unacceptably poor” housing by bungling private firms, campaigns and MPs said yesterday.

The public accounts committee slammed the Home Office for taking a “short-sightedly” hands-off approach after handing contracts to provide accommodation to 23,000 destitute asylum-seekers to G4S, Serco and Clearel in 2012.

MPs said that G4S and Serco had no experience of such work and weren’t up to the task.

The three firms were brought in on six regional contracts, replacing 22 run by groups including local authorities, voluntary and private groups with the intention of saving £140 million over seven years.

But it only saved £8m, the committee said.

Chairwoman Margaret Hodge said: “The change was poorly planned and badly managed and is unlikely to yield the savings intended.”

The committee also criticised G4S and Serco for failing to inspect and check the properties before taking them over.

“The standard of the accommodation provided has often been unacceptably poor for a very fragile group of individuals and families,” said Ms Hodge.

“The companies failed to improve quality in a timely manner. None of this was helped by the department’s failure to impose penalties on contractors in the transition period.”

Refugee Council Advocacy Manager Dr Lisa Doyle said the group had “long-held concerns about the availability and quality of housing available to asylum-seekers.

“These super-contracts were awarded on the basis that the Home Office would make a significant cost saving. Sadly, the real implication appears to have been significant human cost.

“Asylum-seekers have no choice where they live and, as this report demonstrates, often no way of speaking up if they don’t feel safe.

“It’s vital that while people wait for a decision on their asylum claim they are housed in secure and comfortable conditions.”