What is the new Rwanda plan and why is it controversial?
Rishi Sunak has introduced emergency legislation in a bid to salvage his embattled Rwanda asylum plan and deliver on his pledge to “stop the boats”.
The goal is to ensure those not entering the UK by legal means face being sent on a one-way trip to the east African country.
But last month, the Supreme Court ruled the policy unlawful and could not go ahead as it was, concluding there was a real risk genuine refugees sent to Rwanda could be returned to their home country, where they would face “ill-treatment”.
In a bid to address the concerns, Home Secretary James Cleverly travelled to the country’s capital Kigali to sign a fresh deportation treaty before setting out the details of a proposed bill, which faces its first parliamentary test on Tuesday.
What is the latest Rwanda plan?
It is made up of two parts, aimed at making the deal legally watertight and so avoiding further setbacks, which have so far blocked all deportation flights amid soaring costs of the stalled policy.
The treaty, which needs to be ratified by the UK and Rwandan parliaments to make it internationally binding, centres on providing assurances to the Supreme Court that asylum seekers sent to Rwanda will not be removed and sent to another country where they face persecution.
As part of this, a new appeals process will be established to deal with exceptional cases, such as if someone living in the country under the scheme commits a crime.
British and Commonwealth judges, as well as Rwandan judges, will preside over the appeal hearings and decide whether the individual remains in Rwanda or is sent back to the UK.
Meanwhile, the legislation is designed to enable parliament to confirm Rwanda is a “safe country”.
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Rwanda scheme ‘will do the job’
In a bid to reduce the scope for domestic court hold-ups, the legislation gives ministers the powers to disregard sections of the Human Rights Act, but does not go as far as allowing them to dismiss the European Convention on Human Rights (ECHR).
The UK was among the first to ratify the international treaty which commits its 46 signatories to abide by rules on rights to life, liberty and expression, and protection from torture, degrading treatment and slavery.
It is not linked to the European Union, so Brexit did not affect the UK’s obligations.
Why does this matter?
Because Tory hardliners argue without making the Safety of Rwanda (Asylum and Immigration) Bill more robust and allowing ministers to ignore asylum rulings by both domestic judges and the European Court of Human Rights, which makes binding judgments on the convention, the policy is destined to fail.
It led to the resignation of immigration minister Robert Jenrick, who argued the legislation was “a triumph of hope over experience”.
At the same time, centrist Conservative MPs are insisting the government respects the rule of law and the UK’s international obligations.
The public divisions causes a further headache for Mr Sunak as he seeks to take the legislation through parliament and reassert his authority over fractious backbenchers.
Read more:
Whatever happens in Rwanda vote, PM is in deep trouble
What is the European Court of Human Rights?
As well as differing positions on the ECHR, the Conservatives’ poor showing in the polls has heightened the tensions within the party.
A number of Tory MPs believe reducing immigration, and particularly ending the scenes of asylum seekers arriving on Kent’s beaches, will be key to narrowing Labour’s lead and want to see the government do everything possible to achieve that.
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‘My patience has worn thin, right?’
Although the government argues the proposed bill goes as far as it can as the Rwandan government will pull out of a deal that involves leaving the ECHR altogether, ministers have hinted at compromises with rebels.
Is party infighting the only problem facing the government?
No. As well as having to navigate the bill through the Commons, it also has to clear the House of Lords, where the Tory administration does not have a majority.
Any move to relax human rights safeguards are likely to encounter stiff opposition, not least among the many leading lawyers who sit on the red benches.
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The inability of the home secretary to guarantee the proposed law is compatible with the ECHR will only fuel concerns.
As the Rwanda plan was not a manifesto commitment, critics in the unelected chamber will also argue the usual convention of not delaying the delivery of an election pledge does not apply.
With an upcoming election, the timing also means the government cannot use powers under the Parliament Act to force through the legislation.
Italy’s securities regulator set a firm timetable for applying the European Union’s Markets in Crypto-Assets Regulation (MiCA) in the country, warning that unlicensed crypto platforms face a deadline to either seek authorization or leave the market.
The move directly affects virtual asset service providers (VASPs) currently operating under Italy’s regime and the retail investors who use them.
In a news release published Thursday, Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) reminded the market that Dec. 30 is the last day VASPs registered with the Organismo Agenti e Mediatori (OAM) can operate under the existing national framework.
After that date, only entities authorized as crypto asset service providers (CASPs) under MiCA, including firms passporting into Italy from another EU member state, will be allowed to offer crypto‑asset services in the country.
CONSOB notes that, under Italy’s MiCA‑implementing legislation, VASPs that submit an application to be authorized as CASPs in Italy or another European Union member state by Dec. 30 may continue operating while their applications are assessed, but no later than June 30, 2026.
This transitional operating period is available only to operators who file by the deadline and ends once authorization is granted or refused, or when the June 30, 2026, limit is reached.
Related: ECB president calls to address risks from non-EU stablecoins
Obligations for firms that do not apply
For VASPs that decide not to seek authorization under MiCA, CONSOB outlined specific obligations. These operators must cease their activities in Italy by Dec. 30, terminate existing contracts, and return clients’ crypto‑assets and funds in accordance with customers’ instructions.
CONSOB also said that VASPs registered in the OAM list must publish adequate information on their websites and inform clients directly about the measures they intend to adopt, either to comply with MiCA or to ensure an orderly closure of existing relationships.
This framework stems from Italy’s legislative decree implementing MiCA, which introduced a transitional regime for existing VASPs and set the conditions under which they can continue operating while moving to the new CASP authorization system. The decree makes use of the flexibility allowed by MiCA’s transitional provisions to set national deadlines, including the June 30, 2026 date referred to in CONSOB’s communication.
Warnings to retail investors
CONSOB’s news release includes a separate section titled “warnings for investors.”
The regulator points out that VASPs currently operating in Italy may no longer be authorized to do so after Dec. 30, and stresses that investors should check whether they have received the necessary information from their provider on its plans to comply with MiCA.
If not, CONSOB advises investors to ask the operator for clarification or request the return of their funds.
EU‑level context under MiCA
CONSOB’s communication sits within the wider EU framework for MiCA’s application and transitional measures. On the same day, the European Securities and Markets Authority (ESMA) published a statement on the end of MiCA transitional periods, highlighting that member states can provide temporary continuation of existing licenses for existing providers, but these periods are limited and will expire.
Related: EU plan would boost ESMA powers over crypto and capital markets
The ESMA’s statement explains that firms operating under national transitional regimes are not automatically MiCA‑authorized and emphasizes the need for “orderly wind-down plans” where providers do not obtain authorization before transitional periods end.
Italy’s hard stop for applications and continued operation shows how member states are using the discretion MiCA gives them over transitional regimes. The Italian transitional period now has defined end‑points, and continued activity in the market will require MiCA‑compliant authorization.
Magazine: EU’s privacy-killing Chat Control bill delayed — but fight isn’t over
A new long-awaited child poverty strategy is promising to lift half a million children out of poverty by the end of this parliament – but critics have branded it unambitious.
The headline announcement in the government’s plan is the pledge to lift the two-child benefit cap, announced in Rachel Reeves’s budget last week.
It also includes:
• Providing upfront childcare support for parents on universal credit returning to work
• An £8m fund to end the placement of families in bed and breakfasts beyond a six-week limit
• Reforms to cut the cost of baby formula
• A new legal duty on councils to notify schools, health visitors, and GPs when a child is placed in temporary accommodation
Many of the measures have previously been announced.
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Two-child cap ‘a real victory for the left’
The government also pointed to its plan in the budget to cut energy bills by £150 a year, and its previously promised £950m boost to a local authority housing fund, which it says will deliver 5,000 high-quality homes for better temporary accommodation.
Downing Street said the strategy would lift 550,000 children out of poverty by 2030, saying that would be the biggest reduction in a single parliament since records began.
But charities had been hoping for a 10-year strategy and argue the plan lacks ambition.
A record 4.5 million children (about 31%) are living in poverty in the UK – 900,000 more since 2010/11, according to government figures.
Phillip Anderson, the Strategic Director for External Affairs at the National Children’s Bureau (NCB), told Sky News: “Abolishing the two-child limit is a hell of a centre piece, but beyond that it’s mainly a summary of previously announced policies and commitments.
“The really big thing for me is it misses the opportunity to talk about the longer term. It was supposed to be a 10-year strategy, we wanted to see real ambition and ideally legally binding targets for reducing poverty.
“The government itself says there will still be around four million children living in poverty after these measures and the strategy has very little to say to them.”
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‘A budget for benefits street’
‘Budget for benefits street’ row
The biggest measure in the strategy is the plan to lift the two-child benefit cap from April. This is estimated to lift 450,000 children out of poverty by 2030, at a cost of £3bn.
The government has long been under pressure from backbench Labour MPs to scrap the cap, with most experts arguing that it is the quickest, most cost-effective way to drive-down poverty this parliament.
The cap, introduced by Conservative chancellor George Osborne in 2017, means parents can only claim universal credit or tax credits for their first two children. It meant the average affected household losing £4,300 per year, the Institute for Fiscal Studies calculated in 2024.
The government argues that a failure to tackle child poverty holds back the economy, and young people at school, cutting their employment and earning prospects in later life.
However, the Conservatives argue parents on benefits should have to make the same financial choices about children as everyone else.
Shadow chancellor Mel Stride said: “Work is the best way out poverty but since this government took office, unemployment has risen every single month and this budget for Benefits Street will only make the situation worse. “
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OBR leak: This has happened before
‘Bring back Sure Start’
Lord Bird, a crossbench peer who founded the Big Issue and grew up in poverty, said while he supported the lifting of the cap there needed to be “more joined up thinking” across government for a longer-term strategy.
He has been pushing for the creation of a government ministry of “poverty prevention and cure”, and for legally binding targets on child poverty.
“You have to be able to measure yourself, you can’t have the government marking its own homework,” he told Sky News.
Lord Bird also said he was a “great believer” in resurrecting Sure Start centres and expanding them beyond early years.
The New Labour programme offered support services for pre-school children and their parents and is widely seen to have improved health and educational outcomes. By its peak in 2009-2010 there were 3,600 centres – the majority of which closed following cuts by the subsequent Conservative government.
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Lord Bird on the ‘great distraction’ from child poverty
PM to meet families
Sir Keir Starmer’s government have since announced 1,000 Best Start Family Hubs – but many Labour MPs feel this announcement went under the radar and ministers missed a trick in not calling them “Sure Starts” as it is a name people are familiar with.
The prime minister is expected to meet families and children in Wales on Friday, alongside the Welsh First Minister, to make the case for his strategy and meet those he hopes will benefit from it.
Several other charities have urged ministers to go further. Both Crisis and Shelter called for the government to unfreeze housing benefit and build more social rent homes, while the Children’s Commissioner for England, Dame Rachel de Souza, said that “if we are to end child poverty – not just reduce it” measures like free bus travel for school-age children would be needed.
The strategy comes after the government set up a child poverty taskforce in July 2024, which was initially due to report back in May. The taskforce’s findings have not yet been published – only the government’s response.
Sir Keir said: “Too many children are growing up in poverty, held back from getting on in life, and too many families are struggling without the basics: a secure home, warm meals and the support they need to make ends meet.
“I will not stand by and watch that happen, because the cost of doing nothing is too high for children, for families and for Britain.”
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