After the announcement, Home Affairs Select Committee chair Keith Vaz MP said: "The Home Secretary has done the right thing in putting the UK Backlog Agency out of its misery.
"As yesterday's Home Affairs Committee report shows, the organisation is not fit for purpose.
"However, this cannot be an excuse not to clear the backlogs, which stand at a third of a million cases.
"Ministers are now on the front line.
"Proper accountability and scrutiny of our immigration system must continue, and it will need effective and strong leadership if the Home Office is serious about having a fully functional immigration system."
Home Secretary Theresa May said after the UK Border Agency (UKBA) is split up, the new entities will not have "agency" status and will therefore sit in the Home Office and reporting to ministers.
The Home Secretary's announcement that the UK Border Agency (UKBA) will be split comes after the Home Affairs Select Committee warned that it would take the agency 24 years to clear a backlog of asylum and immigration cases.
The committee also launched a scathing attack on former UKBA chief Lin Homer, now the head of Britain's tax office, for her "catastrophic leadership failure" when she was in charge of the country's border controls.
Problems with immigration have got "worse not better" on Theresa May's watch, the Shadow Home Secretary insisted today as reforms to the UK Border Agency (UKBA) were announced.
Yvette Cooper told MPs that while the agency had long suffered problems, the Home Office was making things worse with Mrs May in charge.
She claimed today's announcement had been rushed to the Commons by the Home Secretary in the wake of yesterday's damning report by the Home Affairs Select Committee.
Mrs May disagreed with her comments, saying the Home Office under her leadership was, on the contrary, fixing problems created in border security at the agency's inception by Labour.
The Commons row followed Mrs May's announcement that UKBA was to be divided into two new entities, both of which would be brought inside the Home Office instead of being run at arm's length.
The UK Border Agency (UKBA) will be split into two in a bid to tackle a spiralling backlog of asylum and immigration cases, the Home Secretary has announced.
The UKBA is to be divided into an immigration and visa service and an immigration law enforcement organisation in the wake of a series of damning reports and inspections.
Theresa May said the UKBA in its current form "struggles with the volume of its casework" and has been "a troubled organisation" since it was formed.
May told the House of Commons, "The Agency has been a troubled organisation since it was formed in 2008 and its performance is not good enough".
"In truth the Agency was not set up to absorb the level of mass immigration that we saw under the last Government", she continued. "This meant the Agency has never had the space to modernise its structures and systems and get on top of its workload".
The Government will split up the UK Border Agency, Home Secretary Theresa May told the House of Commons today.
An investigation into the UK Border agency has uncovered a backlog of more than 16,000 immigrants waiting to hear if they can stay in Britain.
It has been revealed that the number of migrant applicants is growing at a rate of 700 a month, with around 14,000 already refused the right to stay in the UK.
With 16,000 migrants currently waiting to hear if they can stay in the UK, campaigners Migration Watch UK have branded the backlog as 'chaos'.
An investigation into UK border control has found that 16,000 migrants are currently waiting to hear whether they can stay in Britain.
- 2,100 cases were yet to receive an initial decision as to whether they could stay in the UK or not, some dating back to 2003
- 180 of these applicants wanted to stay for marriage or civil partnership reasons
- The UK Border Agency is failing to check whether applicants earn enough to live without state handouts
- Staff are not consistently applying the "income support threshold" rule to applicants who want to stay in the UK due to marriage
- The percentage of allowed marriage appeals in total was too high at over 50 per cent April 2011 and February 2012
- Problems with the agency failing to take into account the rights of children when refusing further leave in the UK were also discovered
Sixteen thousand migrants are currently waiting to hear whether they can remain in the UK, according to an independent investigation into UK border controls.