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The taxpayer bill on asylum almost doubled in a year to nearly £4bn as Rishi Sunak said the cost was “unacceptable” and warned the system is under “unsustainable pressure”.

Home Office spending on asylum rose by £1.85bn, from £2.12bn in 2021/22 to £3.97bn this year.

A decade ago, in 2012/13, the total cost to the taxpayer was £500.2m.

Channel crossings topped 19,000 for the year so far, Home Office figures showed, despite Mr Sunak’s promise to voters that he would “stop the boats” bringing migrants across the English Channel.

About 80% of asylum seekers are waiting longer than six months for an initial decision, government statistics show.

Mr Sunak has also pledged by the end of 2023 to clear the backlog of around 92,601 so-called “legacy” cases which had been in the system as of the end of June last year.

But in the six months since Mr Sunak made his promise, the figure reduced by just less than a quarter.

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He told the Daily Express: “The best way to relieve the unsustainable pressures on our asylum system and unacceptable costs to the taxpayer is to stop the boats in the first place.

“That’s why we are focused on our plan to break the business model of the people smugglers facilitating these journeys, including working with international partners upstream to disrupt their efforts, stepping up joint work with the French to help reduce crossings and tackling the asylum backlog.”

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‘Government broke asylum system’

Overall, a total of 175,457 people were waiting for an initial decision on an asylum application in the UK at the end of June 2023, up 44% from 122,213 for the same period a year earlier – the highest figure since current records began in 2010.

Of these, 139,961 had been waiting longer than six months for an initial decision, up 57% year on year from 89,231 and another record high.

Labour said the record-high asylum backlog amounts to a “disastrous record” for Mr Sunak and Home Secretary Suella Braverman, while campaigners called for claims to be processed more efficiently.

A group of people thought to be migrants are brought into Dover from a Border Force vessel. File pic
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A group of people thought to be migrants are brought into Dover from a Border Force vessel

But the prime minister defended the government’s progress, saying: “We’ve already reduced the legacy backlog by over 28,000 – nearly a third – since the start of December and we remain on track to meet our target.

“But we know there is more to do to make sure asylum seekers do not spend months or years – living in the UK at vast expense to the taxpayer – waiting for a decision.”

Amnesty International UK said it was “utterly disgraceful that new asylum laws are being introduced to actually prevent the processing of claims altogether, which will make this backlog, its cost and the limbo it imposes on people even worse”.

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Crypto’s path to legitimacy runs through the CARF regulation

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Crypto’s path to legitimacy runs through the CARF regulation

Crypto’s path to legitimacy runs through the CARF regulation

The CARF regulation, which brings crypto under global tax reporting standards akin to traditional finance, marks a crucial turning point.

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Tokenized equity still in regulatory grey zone — Attorneys

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Tokenized equity still in regulatory grey zone — Attorneys

Tokenized equity still in regulatory grey zone — Attorneys

The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments.

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.

Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.

MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.

Read more:
Yet another fiscal ‘black hole’? Here’s why this one matters

Success or failure: One year of Keir in nine charts

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Rachel Reeves’s fiscal dilemma

In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.

“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.

More on Rachel Reeves

“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.

“So we’ll never have to do something like that again. But there are costs to what happened.”

Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.

The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.

It comes after Ms Reeves said she was “totally” up to continuing as chancellor after appearing tearful at Prime Minister’s Questions.

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Why was the chancellor crying at PMQs?

Criticising Sir Keir for the U-turns on benefit reform during PMQs, Conservative leader Kemi Badenoch said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.

“Today’s a new day and I’m just cracking on with the job.”

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Reeves is ‘totally’ up for the job

Sir Keir also told Sky News’ political editor Beth Rigby on Thursday that he “didn’t appreciate” that Ms Reeves was crying in the Commons.

“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

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