After months of delay, parliamentary bickering and legal challenges, Rishi Sunak’s Rwanda bill is set to become law.
Legislation for the prime minister’s controversial plan to deport asylum seekers to the landlocked African country cleared parliament last night after a lengthy battle.
The policy has been plagued by setbacks since it was first announced two years ago, with thousands of people arriving on Kent beaches aboard small boats all the while.
So what is the Rwanda bill and why is it so controversial? Here are some of the key questions, answered.
What is the Rwanda asylum plan?
Rishi Sunak’s promise to “stop the boats” is one of five pledges he has staked his premiership on.
Key to this is the Rwanda scheme, which would involve some asylum seekers being sent to Rwanda to have their asylum claims processed there.
If successful, they can be allowed to stay in Rwanda or seek asylum in another country. But they would not be able to apply to return to the UK.
Ministers say the policy will act as a deterrent to people thinking of travelling to the UK “illegally” (though whether or not crossing the English Channel in a small boat is actually illegal is complicated).
Advertisement
Image: A group of people are brought to Dover onboard a Border Force vessel. Pic: PA
This would be more than two years since the first flight attempted under the deal was grounded amid last-minute legal challenges.
No asylum seekers have yet been sent to Rwanda.
While he refused to go into “sensitive” operations details on Monday, Mr Sunak did outline a number of measures the government was taking to prepare for the first flights to take off.
He said there were now 2,200 detention spaces and that 200 dedicated caseworkers had been trained to process claims quickly.
Around 25 courtrooms have been made available and 150 judges will provide 5,000 sitting days, he added.
Mr Sunak also said there were 500 “highly trained individuals ready to escort illegal migrants all the way to Rwanda, with 300 more trained in the coming week”.
In November, the Rwanda plan was ruled unlawful by the UK’s Supreme Court, which said those being sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.
Is Rwanda a safe country?
Much of the debate around the policy – putting aside differing views on whether it is effective or ethical – centres around the question of whether Rwanda is considered a “safe country”.
The government insists it is, although it’s worth pointing out that the UK granted asylum applications to 15 people from Rwanda last year.
According to Human Rights Watch, critics of the ruling political party in Rwanda have been “arrested, threatened, and put on trial”. Some said they were tortured in detention, the organisation added.
Image: Rishi Sunak’s promise to ‘stop the boats’ is one of five pledges he has staked his premiership on
Who will be affected by the Rwanda scheme?
The Home Office plans to use the agreement with Rwanda to remove people who make dangerous journeys to the UK and are considered “inadmissible” to the UK’s asylum system – and will include people who have arrived irregularly since 20 July last year.
People whom the Home Office wishes to transfer to Rwanda will be identified and referred to the Rwandan authorities on a case-by-case basis, after an initial screening process following arrival in the UK, the government has said.
Although the agreement focuses on asylum seekers, under the treaty people who have made unauthorised journeys to the UK but not claimed asylum can be relocated to Rwanda as well.
On Monday, the Rwanda bill finally passed through the Commons and Lords and is now set to become law.
The legislation was introduced by the government in the wake of November’s Supreme Court ruling which had declared that Rwanda was not safe for refugees.
Since then, the government has signed a new treaty with Rwanda which it says contains additional safeguards for people relocated.
With the new bill, parliament was asked to declare that Rwanda must be treated as safe in order to render the relocation plan lawful in UK domestic law.
What happens now?
The bill is now headed for royal assent after passing through parliament, but it’s likely to still face various challenges.
Campaigners opposing the plans, and individual asylum seekers who are told they are to be sent to Rwanda, could look to take the government to court again in an attempt to stop flights.
Whether any legal challenges could be successful in light of the new law remains to be seen.
Please use Chrome browser for a more accessible video player
8:48
Rwanda plan an ‘expensive gimmick’
How much has this all cost?
A lot.
An investigation by Whitehall’s spending watchdog said the cost of the Rwanda scheme could rise to half a billion pounds, plus hundreds of thousands more for each person deported.
The government has refused to say how much more money, on top of the £290m already confirmed, that the UK had agreed to pay Rwanda under the deal. However, a National Audit Office report revealed millions more in spending including £11,000 for each asylum seeker’s plane ticket.
What are people opposed to the Rwanda asylum plan saying now the bill was passed?
The passing of the bill has sparked fresh condemnation from charities and other organisations.
Amnesty International said it will “leave a stain on this country’s moral reputation”.
Sacha Deshmukh, Amnesty International UK’s chief executive, added: “The bill is built on a deeply authoritarian notion attacking one of the most basic roles played by the courts – the ability to look at evidence, decide on the facts of a case and apply the law accordingly.
“It’s absurd that the courts are forced to treat Rwanda as a ‘safe country’ and forbidden from considering all evidence to the contrary.”
Thousands of job cuts at the NHS will go ahead after the £1bn needed to fund the redundancies was approved by the Treasury.
The government had already announced its intention to slash the headcount across both NHS England and the Department of Health by around 18,000 administrative staff and managers, including on local health boards.
The move is designed to remove “unnecessary bureaucracy” and raise £1bn a year by the end of the parliament to improve services for patients by freeing up more cash for operations.
NHS England, the Department of Health and Social Care, and the Treasury had been in talks over how to pay for the £1bn one-off bill for redundancies.
It is understood the Treasury has not granted additional funding for the departures over and above the NHS’s current cash settlement, but the NHS will be permitted to overspend its budget this year to pay for redundancies, recouping the costs further down the line.
‘Every penny will be spent wisely’
Chancellor Rachel Reeves is set to make further announcements regarding the health service in the budget on 26 November.
And addressing the NHS providers’ annual conference in Manchester today, Mr Streeting is expected to say the government will be “protecting investment in the NHS”.
He will add: “I want to reassure taxpayers that every penny they are being asked to pay will be spent wisely.
“Our investment to offer more services at evenings and weekends, arm staff with modern technology, and improving staff retention is working.
“At the same time, cuts to wasteful spending on things like recruitment agencies saw productivity grow by 2.4% in the most recent figures – we are getting better bang for our buck.”
Image: Health Secretary Wes Streeting during a visit to the NHS National Operations Centre in London earlier this year. Pic: PA
He is also expected on Wednesday to give NHS leaders the go-ahead for a 50% cut to headcounts in Integrated Care Boards, which plan health services for specific regions.
They have been tasked with transforming the NHS into a neighbourhood health service – as set down in the government’s long-term plans for the NHS.
Those include abolishing NHS England, which will be brought back into the health department within two years.
Arjun Sethi, the co-CEO of major crypto exchange Kraken, criticized the United Kingdom’s crypto regulations, which he believes hinder services for their customers.
In an interview with the Financial Times, Sethi said that “in the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box.” He suggested that the disclaimers have a significant impact on customer experience.
Sethi suggested that disclosures slow users down and that, because of the importance of speed in crypto trading, “it’s worse for customers.” He concluded that “disclosures are important […] but if there are 14 steps, it’s worse.”
The UK Financial Conduct Authority’s (FCA) updated financial promotion regime came into force in October 2023. It introduced a “cooling-off” period for first-time crypto investors and requires firms to assess whether users have sufficient knowledge and experience before trading.
Sethi said that the rules may prompt customers to avoid investing in crypto altogether, potentially leading to missed potential gains. The FCA defended the rules, noting that “some consumers may make an informed decision that investing in crypto is not right for them — that is our rules working as intended.”
Example of disclaimer from the Kraken website. Source: Kraken
Despite frustrations with the FCA, the UK appears to be moving toward a broader alignment with the United States on digital-asset oversight.
Lisa Cameron, a former United Kingdom Member of Parliament and founder of the UK-US Crypto Alliance, said she believes a joint “sandbox” between the UK and the US is in development to align their crypto markets.
She came to this conclusion after discussion with US Senators and regulators and expects the sandbox’s purpose to be to “iron out some of this in terms of passporting” for crypto licenses between the UK and the US.
On Monday, the Bank of England published a consultation paper proposing a regulatory framework for stablecoins. The new legislation is focused on sterling-denominated “systemic stablecoins” widely used in payments, similar to the US’s GENIUS Act.
A crypto collaboration between the UK and the US is not a new phenomenon. September reports noted that treasury authorities in the US and UK created a transatlantic task force to explore “short-to-medium term collaboration on digital assets.” Also in September, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed how the two nations could strengthen their coordination on crypto.
September also saw UK trade groups urge the UK government to include blockchain technology in a technology collaboration with the US program known as “Tech Bridge.” A joint letter by the organization warned that “excluding digital assets from the UK-US Tech Bridge would be a missed opportunity,” and that it “risks leaving Britain on the sidelines.”
Japan’s first domestic stablecoin issuer said digital asset companies may soon become significant players in the country’s sovereign debt market, potentially reshaping monetary policy.
JPYC, the Tokyo-based company behind Japan’s first yen-pegged stablecoin, said issuers may evolve into major buyers of Japanese government bonds (JGBs) as their reserves increase.
In comments reported by Reuters, JPYC founder and CEO Noritaka Okabe said stablecoin reserves could fill the gap left by the Bank of Japan (BOJ) as it slows its bond purchases.
The Tokyo-based startup started issuing its yen-backed token, also dubbed JPYC, on Oct. 27, under the country’s revised Payment Services Act, its first legal framework for stablecoins. The company has issued about $930,000 worth of tokens to date and aims to reach a circulation of $66 billion within the next three years.
The token is backed by a combination of bank deposits and JGBs and is fully convertible to yen. It’s also designed to move seamlessly across blockchain rails.
Stablecoin issuers as new bond buyers
Okabe said JPYC plans to invest 80% of its issuance proceeds in JGBs and keep the remaining 20% in bank savings, initially focusing on short-term securities. He added that the company may consider longer-term JGBs in the future as demand grows and the yields remain attractive.
This type of allocation could give stablecoin issuers a significant role in Japan’s debt market, where the BOJ still holds about half of the $7 trillion JGB market. As the central bank slows bond purchases, new buyers need to absorb the issuance.
Because of this, Okabe floated the idea that stablecoin reserves could naturally fill part of the vacuum, linking blockchain adoption to fiscal financing.
“The volumes of JGBs stablecoin issuers buy will be swayed by the balance of supply and demand for stablecoins,” he said, noting that this trend “will happen around the world” and that Japan will not be an exception.
Okabe’s comments came as stablecoins continue to see adoption in Japan’s traditional finance sector.
On Friday, the Financial Services Agency (FSA), the country’s financial regulator, endorsed a yen-pegged stablecoin project led by Japan’s biggest financial institutions.
The FSA announced the “Payment Innovation Project,” an initiative that involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The regulator said that the companies will begin issuing payment stablecoins this month.