MINISTERS were today urged to review the immigration system after it was revealed around 283,500 failed asylum seekers may still be in the United Kingdom.

The National Audit Office (NAO) warned that despite increasing spending on removing failed applicants, the Immigration and Nationality Department (IND) was struggling to meet targets.

Prime Minister Tony Blair set a target in September 2004 that by the end of this year the monthly rate of removals should exceed rejected applications.

The report, citing Home Office figures, noted that between 1994 and May 2004, some 363,000 asylum applications were rejected.

In same period the Directorate said it removed 79,500 failed asylum seekers.

At the end of May 2004, the Directorate's own database identified 155,000 failed applicants as potentially removable.

That figure excludes cases which predate the database's introduction in 2000.

The NAO noted neither figure includes people who have overstayed their leave to remain in the UK.

Edward Leigh, the Tory MP who chairs the Commons public accounts committee said in a statement: "The Immigration and Nationality Directorate has a target to effect as many removals per month as there are new unfounded cases.

"Despite a massive increase in expenditure on immigration enforcement - to £300m a year - IND has not yet come close to meeting this target and while the number of removals may be higher than it was five years ago, it has fallen compared to last year."