Home secretary David Blunkett's asylum amnesty will fail to clear the backlog of 15,000 families stuck in the system.
The amnesty, which has been beset by delays and is still dragging on two months after it should have been completed, is likely to result in only half the families being granted leave to remain in the UK.

The other half are now not thought to be eligible under the amnesty's strict terms. Their residency status will remain unclear unless the government decides to extend the criteria.

A source involved in administrating the project said: "There are a number of cases that might not be eligible. People are not being told why."

The source said there may now be a need for a second amnesty to deal with those who have been deemed ineligible under the terms of the first.

The Home Office refused to comment on why people may not be eligible but, under the terms of the amnesty, people are eligible only if they are part of a family with at least one adult and one child under 18; they do not have a criminal record; they applied for asylum before 2 October 2000; and they have at least one dependant in the UK who is aged under 18 and has been living here since 2 October 2000.

The amnesty – officially known as indefinite leave to remain – was designed to solve the problem of families who arrived in the UK before a national system for handling applications was in place.

There are a number of cases that might not be eligible [for asylum]. People are not being told why

Asylum source

They were not eligible for National Asylum Support Service help and were supported by local authorities.

The amnesty was expected to save the government £180m a year in benefits (HT 30 April, page 18).

To date, only 3317 families in London have been granted amnesty.

The initial target to finish the amnesty by 1 May has been abandoned and the Home Office has said that, from next month, it will start to accept appeals from people who believe they are eligible but have not yet been contacted.