Rishi Sunak’s claim to have cleared asylum backlog branded ‘misleading’
The government is claiming victory in clearing the backlog of asylum claims – but that has been described as “misleading” as thousands are still waiting for a final decision.
Prime Minister Rishi Sunak pledged in December 2022 that he would “abolish” the legacy backlog of asylum claims made before 28 June of that year, with the Home Office being given the target of the end of 2023.
On Monday, the department said the pledge had been “delivered”, having processed more than 112,000 asylum claims overall in 2023.
There were more than 92,000 asylum claims made before 28 June 2022 requiring a decision, but Labour has said the government’s claim that all of those cases have been cleared is “false”.
The Home Office said on Monday that all cases in the legacy backlog have been reviewed, but added that “4,500 complex cases have been highlighted that require additional checks or investigation for a final decision to be made”.
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Such cases typically involve “asylum seekers presenting as children – where age verification is taking place; those with serious medical issues; or those with suspected past convictions, where checks may reveal criminality that would bar asylum”, the department added.
It is understood that the Home Office has processed about 25,200 newer asylum claims, on top of the 86,800 decisions in legacy cases, which means the provisional number of total decisions made overall in the year reaches 112,000.
As many decisions as possible were made in the legacy backlog, according to officials, and the outstanding cases are due to a refusal to compromise security.
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They pointed to efforts to clear some of the newer cases as evidence of the department’s commitment to tackling the overall backlog.
The prime minister said in a statement that the department’s efforts are “saving the taxpayer millions of pounds in expensive hotel costs, reducing strain on public services and ensuring the most vulnerable receive the right support”.
However, the CEO of the Refugee Council, Enver Solomon, said it is “misleading for the government to claim that the legacy backlog has been cleared as there are thousands still waiting for a decision”.
“After mismanaging the asylum system for so many years the government was right to clear the backlog but was wrong to do it in a way that has failed to see the face behind the case and instead has treated people simply as statistics rather than with the care and compassion they deserve,” he added.
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Labour’s shadow immigration minister also accused the government of making “false” claims about clearing the asylum backlog.
Stephen Kinnock said: “The asylum backlog has rocketed to 165,000 under the Tories – eight times higher than when Labour left office – and no slicing or renaming the figures can disguise that fact.
“Meanwhile Rishi Sunak’s promise made a year ago to end asylum hotel use has been disastrously broken – with a 20% increase to 56,000, costing the British taxpayer more than £2bn a year.
“This is yet more evidence of an asylum system broken by the Conservatives.”
Stephen Kinnock claims asylum system is ‘broken’
The government’s announcement comes after months of fears that the prime minister’s target would not be achieved.
In February last year, the Home Office said thousands of asylum seekers would be sent questionnaires which could be used to speed up a decision on their claims, and about 12,000 people from Afghanistan, Syria, Eritrea, Libya and Yemen, who had applied for asylum in the UK and were waiting for a decision, were understood to be eligible under the policy.
In June, the National Audit Office (NAO) said efforts to clear the backlog needed to significantly increase to clear the backlog and questioned whether the plans were sustainable.
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The spending watchdog also estimated £3.6bn was spent on asylum support in 2022-23, which amounted to almost double the previous year.
The Home Office said more caseworkers had been tasked with processing applications, which was “tripling productivity to ensure more illegal migrants are returned to their country of origin, quicker”.
But the department’s top civil servant, Sir Matthew Rycroft, revealed in a letter to MPs that just 1,182 migrants who had crossed the Channel had been returned to their home country since 2020, out of a total of more than 111,800 who arrived in that time period.
The majority of those returned were from Albania, with whom the UK has a returns agreement.
In an appearance before the Commons Liaison Committee in December, the prime minister was unable to say when the remaining overall backlog of asylum claims would be cleared, which continued to rise and stood at 91,076 as of the end of November, not including legacy cases.
The US Securities and Exchange Commission and crypto exchange Gemini have asked to pause the regulator’s suit over the exchange’s Gemini Earn program, saying they want to discuss a potential resolution.
In an April 1 letter to New York federal court judge Edgardo Ramos, lawyers representing the SEC and Genesis requested a 60-day hold on the case and that all deadlines be pulled “to allow the parties to explore a potential resolution.”
“In this case, the parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” the letter states.
The lawyers added that a stay was in the court’s interest as “a resolution would conserve judicial resources” and proposed that a joint status report be submitted within 60 days after the entry of the stay.
The SEC sued Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging they offered unregistered securities through the Gemini Earn program.
In March 2024, Genesis agreed to pay $21 million to settle charges related to the lending program, but the enforcement case against Gemini remains outstanding.
Letter from SEC and Genesis Global requesting extension of stay. Source: CourtListener
The letter did not specify what a possible resolution would entail, but the SEC has dropped several lawsuits it launched against crypto companies under the Biden administration, including against Coinbase, Ripple and Kraken.
Related: Will new US SEC rules bring crypto companies onshore?
In February, Gemini said the SEC closed a separate investigation into the firm as the regulator winds back its crypto enforcement under President Donald Trump.
“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone,” Gemini co-founder Cameron Winklevoss said at the time.
OpenSea, Crypto.com and Uniswap, among others, have also recently reported that the SEC had closed similar probes into their companies that were investigating alleged breaches of securities laws.
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Two Republicans who received a combined $1.5 million from the crypto-backed political action committee (PAC) Fairshake will enter the US House after winning special elections in Florida.
Republican Jimmy Patronis won the vacant seat in Florida’s 1st Congressional District to replace Matt Gaetz, taking 57% of the vote to defeat Democrat Gay Valimont, according to AP News data.
Randy Fine also took Florida’s 6th Congressional District with 56.7% of the vote to beat his Democratic rival, public school teacher Josh Weil, and fill a seat left vacant by Mike Waltz, who took a job as White House national security adviser.
Florida’s 1st and 6th Congressional Districts — located in Florida’s western panhandle and along the state’s northeast coast — have been controlled by Republicans for roughly 30 years, but their lead has narrowed in recent years.
Fairshake, a PAC backed by crypto industry giants including Coinbase, Ripple and Andreessen Horowitz, gave Fine around $1.16 million in advertising spending and funneled $347,000 to Patronis to support his campaign.
Both Republicans have expressed support for the crypto industry, with Fine stating in a Jan. 14 X post that “Floridians want crypto innovation!”
Source: Randy Fine
Fairshake and its affiliates poured around $170 million into the 2024 US presidential and congressional elections to back candidates who committed to supporting the crypto industry.
The wins by Patronis and Fine increased Republican representation in the House to 220 seats, with the Democrats holding 213 seats.
There are two vacant seats to be filled after Texas and Arizona Democrats Sylvester Turner and Raúl Grijalva died on March 5 and March 13, respectively.
Florida can expect to see a crypto-friendly regulatory environment
The victories for Patronis and Fine likely mean that crypto legislation will continue to see support in the US capital.
The Republican Party would have maintained its House majority even if it lost both seats in Florida, but it would have made it more difficult for some of the recently introduced Republican-backed crypto bills to pass through the House and Senate.
Related: Florida bill proposes strict rules against online gambling
At the Digital Assets Summit on March 18, Democratic Congressman Ro Khanna said he believes Congress “should be able to get” both a stablecoin and crypto market structure bill done this year.
Bills that could eventually make their way to the House include the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which passed the Senate Banking Committee in an 18-6 vote on March 13.
Senator Cynthia Lummis also reintroduced a Bitcoin reserve bill about a week after the Trump administration announced the establishment of a Strategic Bitcoin Reserve on March 6, with the legislation referred to the Senate Banking Committee on March 11.
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Several British trade associations have asked Prime Minister Keir Starmer’s office to appoint a special envoy dedicated to crypto and for a dedicated action plan for digital assets and blockchain technology.
In a March 31 letter, the coalition of six UK digital economy trade bodies urged Starmer’s special adviser on business and investment, Varun Chandra, for a “greater strategic focus and alignment to deliver investment, growth and jobs” for the crypto industry.
The group, which consisted of the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation and techUK, noted the US policy shift on crypto under President Donald Trump and his appointment of a crypto czar.
Britain’s commitment to an economic trade deal focused on technological cooperation with the US “presents a significant opportunity to mirror the United States’ ambition in fostering leadership in blockchain, digital assets, and other emerging financial technologies,” the letter stated.
The group recommended that the UK appoint a blockchain special envoy, similar to the US, to coordinate policy, foster innovation, and position the country competitively in global markets.
The trade bodies also called for the development of a dedicated government action plan for crypto and blockchain technology, including a concierge service to attract high-potential firms.
They added that the government should acknowledge and leverage the commonalities between blockchain, quantum computing and artificial intelligence technologies, including potential applications for government services.
Another recommendation was to create a high-level industry-government-regulator engagement forum to ensure informed decision-making and cross-sector collaboration.
The UK crypto and tech associations lobbying the government for a policy shift. Source: LinkedIn
“With deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators, the UK provides an environment where digital assets and blockchain innovation can thrive,” they stated.
Related: UK should tax crypto buyers to boost stock investing, economy, says banker
The coalition argues that crypto and blockchain technology could boost the UK economy by 57 billion British pounds ($73.6 billion) over the next decade, with the sector potentially increasing global gross domestic product by 1.39 trillion pounds ($1.8 trillion) by 2030.
Tom Griffiths, the co-founder and managing partner of crypto compliance advisory firm BitCompli, said in response to the letter on LinkedIn that the Financial Conduct Authority “has a lot of talent and a good sight of future plans, but the UK is definitely losing pace with Dubai, Singapore, and other EU jurisdictions.”
“Now is the time for the FCA to act, or the UK will lose out on this huge opportunity, which is digital assets and all the benefits this sector can bring, not only now but over the next 20 years,” he added.
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