Asylum backlog: Government must triple activity to meet target

Published

2 years ago

August 7, 2023

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The government will fail to meet its asylum backlog target without a drastic increase in the processing of applications, a Sky News analysis has found.

At present, there are more than 136,000 asylum applications waiting for an initial decision, including 62,000 that were made before 28 June 2022 – the so-called “legacy backlog”.

In December Rishi Sunak pledged to clear the legacy backlog by the end of 2023. Since then, however, the Home Office has processed just 936 such cases per week.

If the prime minister is to meet his target of clearing all 62,000 remaining cases this year, the Home Office will need to work more than three times as fast.

At current rates, there are set to be more than 41,000 legacy backlog cases remaining by the end of the year.

Home Office figures released today show that the prime minister is struggling to make an impact in another key area of asylum policy: the use of expensive contingency accommodation, such as hotels and B&Bs, to house asylum seekers.

Mr Sunak pledged to end the practice in December, which cost the Home Office £2.3bn in the year to March. However, new data shows the number being housed in hotels has risen from 45,775 to 50,456.

That number is unlikely to be significantly impacted by today’s arrival of the first asylum seekers on the Bibby Stockholm, a barge purchased by the government to reduce the number of claimants staying in hotels.

Fewer than 50 people are set to board the vessel today, which has a total capacity of 500. The government has said it hopes the barge will reach full capacity by the end of the week.

Even if the barge is filled, however, it will only be able to house about 1% of the 50,456 asylum seekers currently staying in hotels.

As a result, the barge is unlikely to put much of a dent in the government’s £2.3bn bill for contingency accommodation.

That cost has ballooned in recent years amid the growing asylum backlog and a chronic shortage of accommodation.

There are more than 136,000 asylum applications awaiting an initial decision, up from about 30,000 in 2019 and less than 6,000 in 2010.

Numbers have increased sharply over the past year as a result of a surge in applications, including from thousands arriving via small boats.

Even before the recent increase, however, the Home Office was struggling to keep up with the number of people applying.

Dr Peter Walsh, senior researcher at the Migration Observatory, a research institute at the University of Oxford, told Sky News that Home Office caseworkers are struggling to process claims efficiently.

“It used to be that the average decision maker roughly five years ago was making about 100 decisions a year and that’s now fallen to 25,” he said.

“Why? Well, the immigration inspector highlighted use of antiquated IT systems, and also low morale and a lack of training. People are going into the role without any experience of the asylum system.

“And staff turnover is very high. That’s a problem because it takes anywhere between a year and 18 months to become proficient in the role. But people are actually quitting before that period because their morale is so low.”

The fact that applications are coming in at a faster rate than they are being processed means that the backlog is growing – counteracting the government’s progress in dealing with legacy cases.

Not only has the number of decisions not kept pace with the number of applications, but the government has also been struggling to remove those whose claims are rejected or withdrawn.

The number of asylum seekers removed from the UK fell by more than half (54%) in the five years to 2019, before halving again in 2020 amid pandemic restrictions on air travel.

The number of removals has since risen, but remains far below where it was in previous years.

“The challenge the government faces is getting countries to take back their citizens if they failed to get asylum in the UK,” says Mr Walsh.

“It’s not entirely clear why that is, but that absolutely is a problem. Countries were not taking people back and the UK doesn’t have the kinds of agreements with countries that would enable them to return citizens to their countries of nationality. It’s a really, really tough challenge the government faces.”

Rwanda plan won’t dent the backlog

Another key plank of the government’s plan to deal with the backlog came into force last month.

The government hopes to cut the backlog by removing asylum seekers to Rwanda before they can lodge their claims in the UK, as part of a deal signed with the African state in April 2022.

Legal challenges have prevented any asylum seekers from being sent to Rwanda so far, but if the scheme does get off the ground the Rwandan government has indicated it can handle up to 200 applications per year.

By comparison, the UK received more than 75,000 asylum applications in 2022, including 44,896 from people arriving in small boats.

Had the Rwanda agreement been up and running last year, it would have cut the number of small boat asylum claims processed in the UK by just 0.4%.

That means the Rwanda plan is unlikely to have any significant effect on the asylum.

Similarly, the opening of the Bibby Stockholm is unlikely to have much of an effect on the use of hotels to house asylum seekers.

In both cases, the government’s hopes are likely to rest not on their direct effect, but on their ability to reduce the number of people applying by presenting the UK as a hostile environment for asylum seekers.

“Part of this is about messaging and the symbolic aspect of the policy,” says Mr Walsh.

“Maybe it might have some deterrent effect. Of course, that’s not clear yet. But in terms of just the raw numbers, 500 doesn’t make a particularly big dent.

“So, if small boat arrivals continue at the rate that they are at present, that accommodation could very quickly be used up requiring the government to continue to use hotels, to continue to invest resources in retrofitting these disused military facilities and so on and so forth.

“This is really just a sticking plaster in the grand scheme of things.”

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

Politics

Indonesia suspends WorldID over alleged registration violations

Published

3 hours ago

May 5, 2025

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Indonesia suspends WorldID over alleged registration violations

OpenAI CEO Sam Altman’s digital identity project World, formerly Worldcoin, is facing challenges in Indonesia amid local regulators temporarily suspending its registration certificates.

The Indonesian Ministry of Communications and Digital (Komdigi) has halted the Electronic System Operator Certificate Registration (TDPSE) for World and World ID over suspicious activity and alleged registration violations, the authority announced on May 4.

After the suspension, Komdigi plans to summon World’s local subsidiaries, PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, to provide clarification on the alleged violations, it said.

According to a preliminary investigation, World’s PT Terang Bulan Abadi was allegedly operating without TDPSE, while PT Sandina Abadi Nusantara — the one World was using for providing its services — is allegedly involved in legal misrepresentation.

Indonesian law requires registration by all digital service providers

In the statement, Komdigi emphasized that all digital service providers in Indonesia must receive electronic registration in accordance with local laws.

Additionally, using another entity’s registration is considered a major breach of Indonesian digital operations law, the authority noted.

“Worldcoin services are recorded using TDPSE in the name of another legal entity, namely PT Sandina Abadi Nusantara,” Alexander Sabar, the Komdigi’s director general for digital supervision, said in the announcement, adding:

“Noncompliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation.”

Community action required

According to Sabar, World’s temporary suspension in Indonesia is a measure taken to prevent potential risks to the community.

He mentioned that the digital ministry is committed to overseeing the digital ecosystem fairly and strictly to ensure the security of the national digital space.

A proper supervision would require active participation from the community, Sabar added, stating:

“We invite the public to help maintain a safe and trusted digital space for all citizens. Komdigi also appeals to the public to remain vigilant against unauthorized digital services, and to immediately report suspected violations through the official public complaint channel.”

In the meantime, the community has apparently been divided over action by Komdigi.

“Good job Indonesia — at least somebody is standing up to that scam,” one commentator wrote on Reddit.

Others fired back, hinting at potential benefits stemming from World’s offering in Indonesia for the general public.

“If giving up your iris biometrics means you can feed your loved ones for a few weeks, that might be a trade worth making. In the end, it all depends on what matters most to you,” another Redditor said.

World’s latest news from Indonesia follows World’s debut in the United States in May 2025, with the platform rolling out its digital identity tech in six cities initially.

A number of global regulators were pushing back on World’s operations since its launch in July 2023, with governments like Germany, Kenya and Brazil expressing concerns over potential risks to the security of biometric data passed by users.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Politics

Donald Trump gives conflicting answers over memecoin profits

Published

6 hours ago

May 5, 2025

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Donald Trump gives conflicting answers over memecoin profits

US President Donald Trump gave clashing answers to whether he has profited from the crypto memecoin he launched in January, just days before he re-entered the White House.

In a wide-ranging interview with Kristen Welker on NBC News’ Meet the Press released on May 4, Trump said he was “not profiting from anything” when asked to respond to critics who said he’s profiting from the presidency through the memecoin.

“So you’re not profiting off of the cryptocurrency at all?” Welker asked Trump.

“I haven’t even looked,” Trump admitted.

“But I’ll tell you what. Look, if I own stock in something and I do a good job, and the stock market goes up, I guess I’m profiting.”

Trump launched his memecoin, Official Trump (TRUMP), on Jan. 17, which hit a peak of $73.43 two days later, just a day before he was inaugurated as president on Jan. 20, according to CoinGecko.

The token has been in a steady decline since launch, but it surged late last month after its website offered top holders a chance to dine with Trump on May 22. It’s currently trading at $11.35, down nearly 85% from its peak.

Trump was apparently unaware of his token’s recent surge, repeatedly asking how much it was now worth.

Two companies, CIC Digital LLC, an affiliate of Trump’s sprawling Trump Organization, and Fight Fight Fight LLC, which is co-owned by CIC Digital, together own 80% of the token’s total 1 billion supply.

Most of those tokens are locked up and will be released over the next three years. The first unlock on April 18 saw 40 million tokens, worth $454 million, go to CIC Digital.

Trump’s memecoin project has made at least $350 million so far, according to a March analysis from the Financial Times, which found those behind the token made $314 million from selling them and $36 million from fees.

Trump has been criticized over his many crypto dealings, which his opponents say are a conflict of interest as he looks to unburden the sector from regulators.

Even those in his own party, Republican Senators Cynthia Lummis and Lisa Murkowski, have criticized Trump’s dinner offer to his top tokenholders.

Trump said during the interview that he would contribute his presidential salary “back to the government,” prompting Welker to ask if he would also contribute any potential crypto earnings.

“I never thought of that,” Trump answered. “I mean, should I contribute all of my real estate that I’ve owned for many years if it goes up a little bit because I’m president and doing a good job? I don’t think so.”

Trump reiterates crypto commitment

In a part of the interview, Trump made a meandering statement that reiterated his campaign promise to support crypto.

“I want crypto. I think crypto’s important because if we don’t do it, China’s going to. And it’s new, it’s very popular, it’s very hot,” he said.

Trump claimed former President Joe Biden “went after it violently, and then, before the election, he changed his tune entirely” to garner the crypto vote. Biden did not run against Trump in the last election, instead handing the baton to then-Vice President Kamala Harris.

The president again made his point when speaking to reporters on the White House South Lawn on May 4.

CBS News’ Jennifer Jacobs reported on X that Trump said “crypto is very important,” and wanted “to keep it away from China.”

He claimed China “will take it over, just like AI, just like so many other industries, or whatever you want to call them.”

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Politics

Industry calls for urgent crypto law reforms after Australian election

Published

6 hours ago

May 5, 2025

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Industry calls for urgent crypto law reforms after Australian election

The Australian crypto industry has called on the newly reelected Labor government to urgently make digital asset legislation a top priority to ensure Australia doesn’t fall further behind global markets.

The incumbent Australian Labor Party was returned in a landslide on May 3, picking up 54.9% of the two-party-preferred vote, against the Liberal and National Parties on 45.1%. Both parties went to the election promising crypto law reform, but only the opposition pledged to deliver draft legislation within 100 days.

Joy Lam, Binance’s head of global regulatory and APAC legal, said the exchange has been consulting with Treasury officials since late 2023 about its proposed legislation, and it was now time for action.

“Timing is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years,” she told Cointelegraph.

Coinbase managing director for APAC John O’Loghlen said the reelected Albanese Government has the “opportunity and the responsibility to move quickly on this issue” and called for a Crypto-Asset Taskforce to be established within its first 100 days “with the aim of bringing forward legislation that protects consumers, promotes innovation, and stops the exodus of talent and capital to other markets.”

Cryptocurrencies, Australia, Bitcoin Regulation — *Reelected Prime Minister Anthony Albanese. Source:* *Anthony Albanese*

BTC Markets CEO Caroline Bowler said that “beyond the political implications, this result sets the stage for meaningful progress in Australia’s approach to digital asset regulation.”

Lam noted that the UK released its draft regulations last week, stablecoin bills are moving forward in the US, and the EU has already implemented its MiCA legislation.

“So there’s a very clear shift. Everyone’s moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way. So time is really of the essence now.”

Draft crypto legislation within months

Treasurer Jim Chalmers’ office told Cointelegraph that exposure draft legislation would be released sometime this year for consultation, and any legislated reforms would be “phased in over time to minimize disruptions to existing businesses.”

Although the Treasury has draft legislation on “regulating digital asset platforms” and “payments system modernization” scheduled for release by the end of June, Lam isn’t confident. “I don’t know whether this quarter specifically is still sort of the timeline,” she said.

While the ALP has been attacked by some over not taking any action in its first term in government, that may actually have resulted in a better outcome than legislation that took its cues from the approach of Joe Biden’s administration, which took a hard line on banks dealing with cryptocurrency and viewed most coins as securities.

Industry figures report a noticeable evolution in the government’s approach to crypto between when proposals were first put out for consultation at the end of 2023 and when the Treasury released its much more positive “Statement on Developing an innovative Australian digital asset industry” in March this year.

The statement sets out key priorities, such as using the existing Australian Financial Services License (AFSL) regime to underpin the regulation of Digital Asset Platforms and payment stablecoins. It’s focused on the safe custody of client assets by centralized providers and sidesteps issues around decentralized finance platforms.

Lam welcomed the use of the AFSL regime. “Obviously, we don’t need to reinvent the wheel,” she said. “It’s something that people know and understand. It’s a pretty sensible move, and it’s also going to be much easier for regulators.”

Tokenization and sandbox

The government will also review the Enhanced Regulatory Sandbox, which aims to provide space for innovative digital asset startups to grow free of red tape. The statement also highlights opportunities with tokenization.

Lam said the change in emphasis showed the government has been listening to the industry.

“It reflects the industry feedback that they would have received in 2023 as a result of the consultation, as well as the changing landscape because obviously it’s been evolving pretty quickly internationally,” Lam said.

“They do have the benefit now of looking at what has worked and hasn’t worked in other jurisdictions, and really building on those lessons.”

Dea Markovy, policy director at Fireblocks, told Cointelegraph that “a lot of the groundwork and research is done” and it was looking broadly positive.

“Of course, a lot of details are still to come around Australia’s Digital Asset Platforms (DAPs) regime. What is significant here is the willingness of the Government to cut through the complexity and uncertainty on crypto intermediaries licensing.”

The securities regulator ASIC released its own crypto regulations proposals (INFO 225) in December, and feedback from those consultations will help inform the government’s new legislation.

“In essence, it details how different token issuances and crypto intermediation will fit into Australia’s existing securities legislation, providing for a transition period,” explained Markovy.

The draft guidance suggests NFTs, in-game assets and memecoins are not financial products — the local equivalent of a “security” — while a yield-bearing stablecoin or a gold-backed token probably are.

The Treasury statement also highlighted issues with debanking. Lam said that simply regulating the industry would go a long way toward solving the issue.

“What we really want from governments and regulators is that clean licensing framework, because that goes a long way to mitigating the risk and giving the banks the comfort that they need,” she said. “And then, there’s probably going to need to be some additional guidance given to banks.”

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