London Daily

Focus on the big picture.
Tuesday, Mar 31, 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
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
UK Museums House More Than 260,000 Human Remains, New Report Reveals
Surging UK Gilt Yields Reflect Inflation Pressures and Fiscal Uncertainty
UK Issues Updated Guidance on Children’s Screen Time with Focus on Balance and Wellbeing
UK Migration Figures Show Shifting Trends Across Asylum, Visas and Channel Crossings
UK Watchdog Launches Probe into Five Firms Over Alleged Fake Reviews and Ratings
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
×