£1m asylum scheme helped one family

The Children's Society said the scheme, which ran for less than a year, failed because of the Government's flawed and confused approach.

But the Government said it was a "complex issue with no one-size-fits-all remedy" and lessons had been learned.

Lisa Nandy, of the Children's Society, said the project was "mismanaged from start to finish".

"It wasn't clear what the UK Border Agency was trying to achieve with the project, which caused considerable confusion from the outset," she said.

The news came after it emerged that just two homeowners had been helped to hold onto their properties by a flagship £285 million initiative to save families from repossession five months after it was launched.

Last month's report by Ms Nandy described the project, known as the Millbank pilot, as a "missed opportunity" and said its design, which involved coercion and confusion about referrals, was "flawed". It found there was a "climate of fear" within the centre and the "threat of destitution for those who did not agree to move... meant the families who went did so under duress".

It also described families' moves into the centre as "traumatic" and added it involved "serious lapses in communication and confidentiality".

Phil Woolas, Border and Immigration Minister, said: "The Children's Society and other lobby groups have pleaded with the UK Border Agency to pilot alternatives to the detention of children. This is exactly what we are doing. Only one family who participated in the Kent pilot returned home - despite the fact that they were free to come and go and had access to all services they required.

"The lessons we learnt have been used to design a new pilot currently running in Glasgow. This demonstrates our commitment to keep exploring alternatives to detention which increase voluntary returns and provide value for money to the taxpayer. This is a complex issue with no one-size-fits-all remedy, which is why these pilots are so crucial."