Blunkett's asylum amnesty leads to Whitehall chaos

Home secretary David Blunkett's grand plan to grant amnesty to thousands of asylum-seeking families has descended into chaos as government departments and councils struggle to implement the details.

Whitehall and local government sources indicated Blunkett's unexpected 24 October announcement was poorly planned. They say it has grave implications for London councils, the Department for Work and Pensions and the ODPM.

The Home Office told council leaders the amnesty process would be complete within six months: six weeks on, only a few hundred of the estimated 15,000 families eligible to apply have been contacted.

A Home Office source admitted last Friday – the first day letters were posted – that only "150 to 200" letters had been sent, but that 2500 would be posted by the end of the year.

A team within the National Asylum Support Service has been working to find eligible asylum seekers: families who applied for asylum before 2 October 2000 and are waiting to appeal or have not yet received a decision.

There are thought to be around 15,000 eligible families, mostly living in London, but there is no definitive list.

A source who sits on one of the multi-agency steering groups overseeing the process said: "There might be fewer letters coming out than planned." He agreed this meant the six-month deadline would be a "challenge".

A spokesman for the Refugee Council said: "Everyone accepts these people have already suffered due to delays. What is needed is swift and clear decision-making."

Blunkett's amnesty announcement could also lead to councils failing a key government target – to get all homeless families out of bed and breakfast by 1 April 2004.

Asylum seekers in emergency housing are exempt from this target – but if they are granted indefinite leave to remain, they assume the rights of any other resident, making it illegal for councils to house them in this way.

Wandsworth council has an estimated 110 families covered by the amnesty. As a result of this it expects the overall number of families it has to rehouse from B&B accommodation to double from 50 to 100 by next April.

Wandsworth asked the ODPM for extra time to meet the B&B target but was refused. It is now talking to other councils and the Association of London Government about the next move.

In a joint statement, the ODPM and the Home Office said there was no reason why Wandsworth could not meet the target.

Blunkett's announcement has also caused headaches at the DWP.

It will have to issue all asylum seekers who have been granted leave to remain with National Insurance numbers and benefits if they cannot find work.

The source said: "The department is concerned about being able to process applicants' benefits. They are having to look again at their processes."

The DWP said: "We are working closely with the Home Office to manage a smooth transition for the families affected."

Meanwhile, Blunkett has published the 2003 Asylum and Immigration Bill – the third bill on the subject since 1999 – which limits asylum seekers to one appeal and withdraws support from failed applicants who do not leave the UK (HT 28 November, page 9).

The controversial proposal to place the children of failed asylum seekers into social services care if they refuse to leave the UK has been omitted from the bill, but the Home Office has yet to rule out inserting it at a later date (HT, 28 November, page 8).