The government failed to deal with a backlog of almost 174,000 foreign nationals who should have been removed from the UK, a report has said.
The independent inspector of immigration said the Home Office must make significant improvements regarding "overstayers" - foreign nationals refused leave to stay in the country.
John Vine said failure to do so could "undermine pubic confidence".
But the amount of "overstayers" is not getting bigger, the report suggests.
Mr Vine said the overall size of the "migration refusal pool" - the number of foreign nationals refused leave to stay in the UK after 2008 - was 173,562 in the three months to June this year, compared with 174,057 in the same period two years earlier.
The Home Office signed a contract with outsourcing group Capita to review and where possible close the records of migrants who had been refused leave to stay in the UK.
But Mr Vine said there had been "significant inaccuracies" in Capita's classification of migration refusal records.
The inspection found that of a sample of 57 records 16 had wrongly recorded the foreign national as having left the UK.
As a result of this inaccuracy Mr Vine's inspection the number of "overstayers" thought to have departed may have been overestimated by as many as 1,140 in 2013-14.
Mr Vine said: "I was disappointed to find a high level of inaccuracy in the classification of migration refusal records, with more than a quarter of departures in my sample being incorrectly recorded.
"Considerable improvements in the Home Office's capability to monitor, progress, and prioritise the immigration enforcement caseload will be needed to deliver its strategy for reducing the level of irregular migration."
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