The United Kingdom government will begin housing small boat migrants at two military sites from next month as part of a push to end the use of hotels, as a report published Monday said billions of pounds of taxpayers' money had been "squandered" on migrant accommodation.

The Labour government has pledged to stop using hotels for asylum seekers, under pressure from rising costs and a growing backlash in local communities.

Long-term asylum accommodation contracts, including hotel use, were agreed by the previous Conservative government and run through 2029.

The Home Office confirmed on Monday it will first temporarily house about 900 male migrants at the two disused sites — Cameron Barracks in Inverness, Scotland and the Crowborough training camp in East Sussex, southern England.

A committee of lawmakers said on Monday that ministers must set out a clear plan to cut reliance on asylum hotels and bring an end to a "failed, chaotic and expensive" system that has wasted taxpayers' money.

The Home Affairs Committee warned that courting public opinion without a concrete plan for alternative accommodation risks "under-delivery and consequently undermining public trust still further".

Projected costs for Home Office accommodation contracts for the period 2019 to 2029, have surged from 4.5 billion to 15.3 billion pounds ($6 billion to $20.3 billion) amid a "dramatic increase" in demand, the committee said.

As of June, roughly 32,000 asylum seekers were in hotels, down from more than 56,000 in 2023, but still around 2,500 higher than this time last year, according to the PA News Agency.

A report published by the committee on Monday said billions of pounds of taxpayers' money had been "squandered" on asylum accommodation.

It cited "flawed contracts" and "incompetent delivery" that left the Home Office using hotels as "go-to solutions" instead of temporary stop-gaps.

The report said: "The Home Office has undoubtedly been operating in an extremely challenging environment but its chaotic response has demonstrated that it has not been up to the challenge.

"The 2026 break clause and end of the contracts in 2029 represent opportunities to draw a line under the current failed, chaotic and expensive system and move to a model that is more effective and offers value for money."

Responding to the report, UK Prime Minister Keir Starmer said he was "determined" to close all asylum hotels.

"I can't tell you how frustrated and angry I am that we've been left with a mess as big as this by the last government," he said.

A Home Office spokesperson said:?"We are furious at the level of illegal migrants and asylum hotels.

"This government will close every asylum hotel. Work is well under way, with more suitable sites being brought forward to ease pressure on communities and cut asylum costs."

UK Defense Minister Luke Pollard told the BBC that the sites were "adequate for what is required".

"That will enable us to take the pressure off the asylum hotel estate and enable those to be closed at a faster rate," he said.