After what I've been reading ...
This does not surprise me at all. It seems that the Home Office is institutionally incompetent - not just implementing bad policies, but incompetent in handling just about everything. It's clear from some of the complaints levelled against them that they have no systems in place to do the job properly.
Things like losing important documents (e.g. foreign passports, marriage certificates), meaning that people are left in limbo - unable to get on with their lives (no passport or driving licence means you can't prove you are who you say you are, can't get a job, can't rent a home, and are really lucky if the Home Office doesn't suddenly decide you are an illegal immigrant and start the process to chucking you out.
Even if they don't decide to throw you oout, not having such documents can screw your life up - such as having your bank account frozen because you can't prove your identity.
Or using minor errors on tax returns to label you as a terrorist and throw you out.
But worst of all, they seem to have a policy whereby they can declare someone an illegal immigrant/terrorist/whatever and the process isn't put on hold pending appeals. I.e. they can screw someone over and leave them unemployable, homeless, etc while the Home Office take their leisurely time over deciding if they made (yet another) mistake.