London Daily

Focus on the big picture.
Saturday, Mar 07, 2026

UK spends up to third of overseas aid budget on housing refugees

UK spends up to third of overseas aid budget on housing refugees

Britain’s government is spending up to a third of its overseas aid budget on housing refugees in the UK, a parliamentary report has said.
The international development select committee study also said that aid spending per refugee in the UK had nearly tripled in three years, rising from £6,700 in 2019 to £21,700 in 2021.

Committee members said they were facing resistance from the government on obtaining exact figures on current spending. However, reportedly more £1 billion of the aid budget was spent on refugees in the UK in 2021, about 10 percent of the total.

The committee described the trend as unsustainable and unprecedented, and stated that it was the government’s political decision to spend so much on refugees in the UK, despite the fact that international rules defining legitimate aid do not require it to do so, the Guardian reported.

Under government rules, the Home Office can take money from the Foreign Office’s overseas aid budget to cover costs of a refugee’s first year in the UK.

According to the report, per capita spending on refugees exceeds that of any other OECD Development Assistance Committee (DAC) country between 2018 to 2021, and is roughly three times that of the DAC average of £7,400.

The Home Office's supplementary estimate includes plans for more than £2.6 billion in official development assistance (ODA) between 2022 to 2023, almost £2 billion more than the main estimate.

The main reason is that between March 2020 and September 2022, the number of asylum seekers housed in “contingency accommodation,” mostly hotels, increased from fewer than 2,600 to more than 37,000, the Guardian reported.

Partly as a result, in 2021 UK bilateral aid spending in least developed countries (LDCs) was slashed by 50 percent.

Given the government’s failure to provide full figures, the committee instead referred to claims by the respected Center for Global Development, which estimates that the amount of aid spent on in-country refugees in 2022 could surpass £3 billion, an increase of more than 300 percent since 2020.

UK-based charity Save the Children told the Guardian that those costs could reach £4.5 billion in 2022-23, accounting for one-third of the total aid budget.

“There has been a determined effort to prevent us from seeing the full picture,” Sarah Champion, the chair of the committee, told the Guardian.

“The government has wilfully attempted to prevent us carrying out our scrutiny role.

“Our attempts to access straightforward information about how the government is spending the ODA budget in the UK hit a brick wall.”

A Foreign Office statement said: “The government has acted decisively and compassionately to support the people of Ukraine and Afghanistan to escape oppression and conflict and find refuge in the UK, and at the autumn statement we provided an additional £2.5 billion to help meet the increased costs of this support.

“We report all aid spending in line with the OECD’s rules, which allow funding to be spent on food and shelter for asylum seekers and refugees for their first year in the UK.

“The UK government spent more than £11 billion in aid in 2021 and remains one of the largest global aid donors with most of it still going towards supporting the poorest communities around the world, helping tackle deadly diseases and getting millions of girls into school.”
Newsletter

Related Articles

0:00
0:00
Close
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
×