London Daily

Focus on the big picture.
Wednesday, Mar 04, 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
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
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
×