19 At this stage of the procurement and even with the forecast benefits, the estimated capital cost of the Bicester centre and that for the centre at RAF Newton, showed that the Home Office would need about £30 million15 more than the £116 million capital funding originally available.
4 | Initial high level estimated annual benefits identified | |||
Estimated benefit |
| 2005 | 2006 and subsequent full year effect | |
Deterrence effect - the extent to which a more robust and streamlined asylum process deters potential applicants, thus reducing subsequent costs | Intake reduction | 0 | 320 | |
Speed effect - the extent to which a faster process for applicants within accommodation centres achieves savings against the anticipated costs were the same applicants dispersed in the normal way | Earlier cessation of support | 1,423 | 2,982 | |
efficiency effect - the extent to which a number of processes carried out in one location can lead to efficiency improvements compared to the process being carried out at multiple locations | Transport savings Staff reduction arranging transport | 42 9 | 88 18 | |
Removals effect - the extent to which levels of compliance and removal exceed those achieved for dispersed applicants | Reduction in cost of removals | 0 | 0 | |
Substitution effect - the extent to which services, staff and facilities being provided at the same site will lead to equivalent levels not being required at other sites (e.g. provision of local statutory services such as education and health) | Primary healthcare | 636 | 1,272 | |
Education | 378 | 756 | ||
Base cost of accommodation/support costs | 902 | 1,889 | ||
Asylum caseworkers | 130 | 259 | ||
Appeals caseworkers | 184 | 367 | ||
National Asylum Support Service staff | 576 | 1,152 | ||
UK Immigration Service staff | 285 | 570 | ||
Social cohesion benefit - the extent to which moving asylum seekers to purpose-built centres might reduce social impacts and related costs in dispersal areas | Suspension of lettings | 425 | 975 | |
Technical issues | 0 | 0 | ||
Grand total |
| 4,990 | 10,648 | |
Source: National Audit Office analysis drawn from Home Office January 2004 Bicester business case | ||||
NOTE Initial high level benefits were estimated to accrue from October 2005. By the time the Discounted Cash Flow at Appendix 4 was being prepared, the start date for work on the Bicester centre had slipped to 2003-04 and the first benefits were expected from April 2006. | ||||
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15 The capital estimates for Bicester in the January 2004 business case were less than the £116 million capital funding secured for the asylum accommodation project but the Home Office estimated it would need to secure an additional £30 million capital funding if RAF Newton was to proceed.