The number of asylum seekers left in limbo as they appeal against a rejected asylum application has risen by nearly 500% over two years, putting renewed pressure on the taxpayer, an analysis by the Refugee Council has found.

Figures released by the Ministry of Justice show that at the end of 2024 there were 41,987 asylum appeals in the tribunal courts’ backlog, up from 7,133 at the start of 2023.

In the last three months of 2024, there were 12,183 appeals lodged following steps taken by the Labour government to restart asylum decision-making when it arrived in office.

The total number of asylum application appeals against decisions lodged at the first-tier tribunal in 2024 has increased by 71% year on year.

It follows an increase in refusals as the grant rate for asylum applicants in 2024 fell to 47%. According to the charity, the Home Office’s effort to clear the asylum backlog, by hiring new caseworkers and shortening initial interviews, has resulted in a rise in errors and omissions.

Enver Solomon, the Refugee Council’s chief executive, said more needed to be done to ensure correct first-time decision-making, so a new backlog was not created in a different part of the system.

“Resolving asylum cases well will help reduce costs and the number of people trapped in limbo, stuck in hotels unable to work or move on with their lives. The use of hotels in communities across the country has become a damaging symbol of government failure and a flashpoint for community tensions. There needs to be a clear plan to stopping the use of hotels by the end of this year,” he said.

At the end of 2024, there were 38,079 people being accommodated in hotels by the Home Office, official figures show. The Refugee Council estimates that if those numbers were to remain the same throughout 2025, the annual cost could reach nearly £1.5bn.

Asylum decision-makers have blamed rules introduced by Rishi Sunak for an increase in asylum appeals.

In a rush to fulfil a pledge to clear 90,000 asylum claims by the end of 2023, the former prime minister introduced rules to shorten the training period for staff and gave them a two-hour limit for interviews.

More claims are also being refused since the introduction by the previous Conservative government of the Nationality and Borders Act 2022, which increased the standard of proof for refugee status.

A shortage of immigration lawyers is adding to lengthy delays to the outcome of asylum appeals. This has led to many cases being adjourned or individuals deciding to represent themselves, which typically makes a hearing six times longer than one with legal representation.

Under Yvette Cooper’s Home Office, the number of people receiving initial decisions in the latest quarter, October to December 2024, was more than double that of the previous three months.

The MoJ is undertaking annual recruitment of about 1,000 judges and tribunal members across all courts and tribunals. The lord chancellor, Shabana Mahmood, announced in November a rise of a minimum of 10% in civil legal aid rates for those working in the immigration sector.

A government spokesperson said asylum claims were considered on a case-by-case basis.

“The asylum system we inherited was not fit for purpose, which is why we are taking urgent action to restart asylum processing and clear the backlog of cases, which will save the taxpayer an estimated £4bn over the next two years, and we remain determined to end the use of asylum hotels over time to cut the unacceptably high costs of asylum accommodation.”