Clearing asylum backlog ‘created another crisis’ as refugees left homeless, charities say
Hassan came to the UK on a boat across the English Channel. Now he is sleeping rough on a Liverpool housing estate.
“Where should I go? What should I do?” he asks me, as he clears out his rain-soaked tent, which he’s pitched under some trees near to a row of semi-detached houses.
A sleeping bag he’s had since he left Calais, the last stop until Britain for more than 30,000 migrants this year, is ringing wet.
“This country is no good for asylum,” he says trying to pack his things into plastic bags.
“When you have a problem, you wait a long time for nothing.”
Hassan fled Iraq last year and travelled through Europe to reach Britain.
But his hopes of a new life have long faded.
“I have no money. No anything,” he says.
Nick Martin speaking to Hassan, who has had his asylum application denied
His asylum application was rejected on a technicality, but he is able to reapply. With no phone and no address however, it seems impossible.
A local resident spots us filming and walks quickly towards us and we witness first hand why immigration is set to become a key issue in the next general election.
“This isn’t happening,” the resident says pointing at the tent angrily.
“We don’t want this around here. You’ve got all the neighbours worried. Imagine this is your house and your kids are playing in the garden and you’ve got him camping here.
“You better get it moved tonight,” he shouts.
His anger is understandable. Hassan doesn’t want to be here.
But as the government has openly admitted, the asylum system in Britain is broken. This depressing scene on a housing estate brings that into clear focus.
We’ve come to Liverpool because the council here is pleading for the government to step in and help.
Read more:
Huge rise in refugees sleeping rough after Home Office cuts notice period
Selma, a refugee who’s come here from Sudan on a family reunion visa and is now homeless
Liverpool City Council says it is dealing with an “unprecedented homelessness problem” and says a big part of that is a sudden influx of asylum seekers.
They blame the government’s move to accelerate the processing of asylum claims to clear the backlog by the end of the year.
When people are given refugee status, they are no longer eligible for asylum seeker accommodation – but there is nowhere to go.
Around £6m a year has been spent housing asylum seekers in hotels and hostels while claims are processed.
And earlier this month, Prime Minister Rishi Sunak said the government had reduced the backlog from 92,000 to 20,000.
Now cities like Liverpool say that has put them under “enormous pressure” as requests for housing are on the rise at a time when housing stock is already at a premium.
The city council told Sky News that it currently spends around £11m per year on asylum seekers and refugees in the region.
Nationally, there are 1.2 million people waiting for social housing, according to the charity Shelter.
Ewan Roberts, from Asylum Link, an organisation set up to offer help and advice to asylum seekers, says clearing the backlog has had negative knock-on effects.
Asylum Link Merseyside’s centre manager Ewan Roberts
“People are coming through the system so quickly now with leave to remain. They’re recognised as refugees, but there’s no accommodation for them.
“The government has pushed the burden on to somebody else.
“Whether that’s the voluntary sector or local authorities or other statutory homelessness services.
“They might have solved one problem, but they’ve created another.”
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Glasgow City council declares ‘housing emergency’ due to homelessness
Alfadal, 31, who is homeless and sleeps with his wife at a train station
Alfadal, 31, has lived in the UK for four years. His 21 year-old wife Selma has recently been allowed to join him here under a family reunion visa.
But they are homeless because he claims the council say they are not a priority.
“I went to the train station. I sleep there,” he said.
“I don’t have any place to take my wife. I’m afraid for her.”
Government and Labour wrestle with asylum
Immigration is shaping up to be one of the key issues ahead of the general election and the government’s handling of the issue will be seen as critical.
Labour is facing the dilemma of being seen as tough enough by former red wall seats but also compassionate by the other wing of it’s supporters.
So far, Sir Keir Starmer has committed to lowering migration but has not given any specific target.
It has been a turbulent few weeks for the Conservative Party. The Supreme Court ruling that plans to send migrants to Rwanda were illegal was a major setback.
But in response, the prime minister published emergency legislation that would declare Rwanda a safe country for asylum seekers and push through their controversial deportation policy.
Rishi Sunak has faced a row within the Tories over his Rwanda bill, with some calling for it to override the ECHR
A government spokesperson said: “We have always met our legal obligations by providing support and accommodation for asylum seekers who would otherwise be destitute.
“As the legacy backlog reduces, we continue to work with local authorities to manage the impact of asylum decisions and support is available on moving on from asylum support accommodation through Migrant Help and their partners.”
“Through our Rough Sleeping Strategy, we will continue to work not just to reduce rough sleeping but to end it completely. Some £2bn have been provided to councils to tackle homelessness and rough sleeping.”
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A group of refugees and asylum seekers waiting to get housing advice at Asylum Link Merseyside, Liverpool
A Liverpool City Council spokesperson said: “Liverpool, like many local authorities, has been placed under immense pressure by the government’s decision to shift the burden from central to local government without proper planning and consultation.
“As a result we have written to the government to ask for additional help and support as well as co-operation to phase the decisions to enable us to find sustainable solutions.
“We are committed to protecting the most vulnerable in our communities and have increased capacity in our frontline services to address these issues.
“Our current spend on asylum seekers and refugees is in the region of £11m per year.”
Panama’s capital city will accept cryptocurrency payments for taxes and municipal fees, including bus tickets and permits, Panama City mayor Mayer Mizrachi announced on April 15, joining a growing list of jurisdictions globally that have voted to accept such payments.
Panama City will begin accepting Bitcoin (BTC), Ether (ETH), Circle’s USDC (USDC), and Tether’s USDt (USDT) stablecoin for payment once the crypto-to-fiat payment rails are established, Mizrachi posted on the X platform.
Mizrachi said previous administrations attempted to push through similar legislation but failed to overcome stipulations requiring the local government to accept funds denominated in US dollars.
In a translated statement, the Panama City mayor said that the local government partnered with a bank that will immediately convert any digital assets received into US dollars, allowing the municipality to accept crypto without introducing new legislation.
Panama City joins a growing list of global jurisdictions on the municipal and state level accepting cryptocurrency payments for taxes, exploring Bitcoin strategic reserves to protect public treasuries from inflation and passing pro-crypto policies to attract investment.
Related: New York bill proposes legalizing Bitcoin, crypto for state payments
Municipalities and states embrace digital assets
Several municipalities and territories around the globe already accept crypto for tax payments or are exploring various implementations of blockchain technology for government spending.
The US state of Colorado started accepting crypto payments for taxes in September 2022. Much like Panama City said it will do, Colorado immediately converts the crypto to fiat.
In December 2023, the city of Lugano, Switzerland, announced taxes and city fees could be paid in Bitcoin, which was one of the developments that earned it the reputation of being a globally recognized Bitcoin city.
The city council of Vancouver, Canada, passed a motion to become “Bitcoin-friendly city” in December 2024. As part of that motion, the Vancouver local government will explore integrating BTC into the financial system, including tax payments.
North Carolina lawmaker Neal Jackson introduced legislation titled “The North Carolina Digital Asset Freedom Act” on April 10. If passed, the bill will recognize cryptocurrencies as an official form of payment that can be used to pay taxes.
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As digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea,” said US Federal Reserve Chair Jerome Powell.
In an April 16 panel at the Economic Club of Chicago, Powell commented on the evolution of the cryptocurrency industry, which has delivered a consumer use case that “could have wide appeal” following a difficult “wave of failures and frauds,” he said.
Powell delivers remarks at the Economic Club of Chicago. Source: Bloomberg Television
During crypto’s difficult years, which culminated in 2022 and 2023 with several high-profile business failures, the Fed “worked with Congress to try to get a […] legal framework for stablecoins, which would have been a nice place to start,” said Powell. “We were not successful.”
“I think that the climate is changing and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins,” he said.
“Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” said Powell.
This isn’t the first time Powell acknowledged the need for stablecoin legislation. In June 2023, the Fed boss told the House Financial Services Committee that stablecoins were “a form of money” that requires “robust” federal oversight.
Related: Stablecoins are the best way to ensure US dollar dominance — Web3 CEO
Support for stablecoin legislation is growing
The election of US President Donald Trump has ushered in a new era of pro-crypto appointments and policy shifts that could make America a digital asset superpower.
Washington’s formal embrace of cryptocurrency began earlier this year when Trump established the President’s Council of Advisers on Digital Assets, with Bo Hines as the executive director.
Hines told a digital asset summit in New York last month that a comprehensive stablecoin bill was a top priority for the current administration. After the Senate Banking Committee passed the GENIUS Act, a final stablecoin bill could arrive at the president’s desk “in the next two months,” said Hines.
Bo Hines (right) speaks of “imminent” stablecoin legislation at the Digital Asset Summit on March 18. Source: Cointelegraph
Stablecoins pegged to the US dollar are by far the most popular tokens used for remittances and cryptocurrency trading.
The combined value of all stablecoins is currently $227 billion, according to RWA.xyz. The dollar-pegged USDC (USDC) and USDt (USDT) account for more than 88% of the total market.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
An appellate court has granted a joint request from Ripple Labs and the Securities and Exchange Commission (SEC) to pause an appeal in a 2020 SEC case against Ripple amid settlement negotiations.
In an April 16 filing in the US Court of Appeals for the Second Circuit, the court approved a joint SEC-Ripple motion to hold the appeal in abeyance — temporarily pausing the case — for 60 days. As part of the order, the SEC is expected to file a status report by June 15.
The SEC’s case against Ripple and its executives, filed in December 2020, was expected to begin winding down after Ripple CEO Brad Garlinghouse announced on March 19 that the commission would be dropping its appeal against the blockchain firm. A federal court found Ripple liable for $125 million in an August ruling, resulting in both the SEC and blockchain firm filing an appeal and cross-appeal, respectively.
However, once US President Donald Trump took office and leadership of the SEC moved from former chair Gary Gensler to acting chair Mark Uyeda, the commission began dropping multiple enforcement cases against crypto firms in a seeming political shift. Ripple pledged $5 million in XRP to Trump’s inauguration fund, and Garlinghouse and chief legal officer Stuart Alderoty attended events supporting the US president.
Related: SEC dropping Ripple case is ‘final exclamation mark’ that XRP is not a security — John Deaton
Despite support for the end of the case coming from both Ripple and the SEC, the August 2024 judgment and appellate cases leave some legal entanglements. Alderoty said in March that Ripple would drop its cross-appeal with the SEC and receive a roughly $75 million refund from the lower court judgment. It’s unclear what else may result from negotiations over a settlement in appellate court.
New leadership at SEC incoming
Acting chair Uyeda is expected to step down following the US Senate confirming Paul Atkins as SEC chair on April 9.
During his confirmation hearings, lawmakers questioned Atkins about his ties to crypto, which could create conflicts of interest in his role regulating the industry. In financial disclosures, Atkins stated he had millions of dollars in assets through stakes in crypto firms, including Securitize, Pontoro and Patomak.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
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