A report by the Public Accounts Committee (PAC) has warned that armed forces families are receiving poor housing which often lack basic facilities such as hot water and heating.
The PAC warned that the Ministry of Defence (MoD) and its housing contractor Carillion Amey had badly let down service families and claimed the contractor’s performance was ‘totally unacceptable’.
The news comes as reports have emerged suggesting the MoD is considering terminating its contract with Carillion Amey. The MoD currently manages 50,000 properties for personnel which are offered at a subsidised rate.
The report concluded that the MoD’s current accommodation contract was not flexible enough to meet 21st Century needs and failed to adequately address the concerns of families.
Meg Hillier, PAC chairwoman said: "Forces families are suffering because of poor service under a contract agreed on terms that were wrong-headed from the start.
"Responsibility for this lies with both Carillion Amey and the government. The MoD seriously misjudged Carillion Amey's capacity to deliver a service which Carillion Amey accepts it was not equipped to deliver.
"It is completely unacceptable that families should have to move into dirty houses with broken appliances, or be left to care for children in homes without hot water or heating."
Mark Lancaster, defence minister, commented: "The service our personnel and their families were getting from Carillion Amey was simply not good enough. They deserve much better, which is why we took swift action once the problems became apparent.
"Carillion Amey rightly apologised and developed an aggressive plan of improvements. Progress is being made, but we will absolutely not hesitate to take further action if they don't deliver."
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