Britain has cut almost $2 billion from its foreign aid budget by cutting the amount spent on accommodation for asylum seekers across the country, new figures reveal.
Prime Minister Keir Starmer is now aiming to cut the bill further and soften the blow of aid cuts ordered in February to pay for increased defence spending. The newly-released figures show 20 per cent of the UK's £14.07 billion ($18.03 billion) development budget is spent on asylum seekers, eating into its room for manoeuvre.
The UK is one of several European countries to have reported a fleeting rise and fall in aid spending because of the cost of accommodating asylum seekers at home, analysis by The National shows. Under international rules, that only counts as foreign aid for 12 months after a person arrives.
But some including Britain are now preparing to go in the opposite direction with substantial cuts to aid. The Netherlands recently announced it would reduce foreign aid by €2.7 billion ($2.96 billion) within two years, while in Germany there are discussions on scrapping both the Development Ministry and a target of spending 0.7 per cent of GDP on aid.
Britain in 2021 dropped its commitment from 0.7 per cent to 0.5 per cent to make up for the costs of Covid-19. Mr Starmer is now lowering that to 0.3 per cent.
Charities are dismayed at the planned cuts, but if Britain will not change its mind it should “at the very least ensure that the remaining limited budget is used for its intended purpose”, said Gideon Rabinowitz of advocacy group Bond.
“We welcome the reduction in the amount of UK aid spent domestically on asylum costs, but this figure remains far too high,” he said.
“As the government slashes the UK aid budget, continuing to spend £2.8 billion ($3.58 billion) of UK aid in the UK on escalating asylum accommodation costs is unsustainable, poor value for money and comes at the expense of essential development and humanitarian programmes tackling the root causes of insecurity and displacement.”
UK figures
The new figures show Britain spent £14.07 billion ($17.97 billion) on aid last year. About 20 per cent of it went on asylum seeker costs incurred in the UK. The year before, it was 28 per cent.
Foreign aid has been spent in Britain to look after people from Afghanistan and Ukraine, and to rent out hotel rooms for people who cross the English Channel. The small boat crossings are a highly sensitive issue in British politics, and hotels were attacked during UK race riots last summer.
The drop of £1.44 billion ($1.84 billion) in last year's asylum bill more than accounted for Britain's total aid cut of £1.28 billion ($1.63 billion). Experts think the fall might be down to a smaller backlog of cases, and the 12-month rule kicking in after many Ukrainians arrived in Britain in 2022 and 2023.
Ministers are certainly keen to crow about any sign that they are clamping down on the use of asylum accommodation. Mr Starmer called it a “ridiculous use of money” inherited from the previous Conservative government.
“As we are clearing that backlog at a record pace. There are efficiencies that will reduce the need to cut spending on our overseas programme,” he told MPs in February. However, he conceded that “it remains a cut, and I will not pretend otherwise”.
The figures also show that the Home Office's asylum costs fell by less than other departments, suggesting it still has a sizeable bill. Helen Stawski, Oxfam's head of policy in the UK, said they showed Britain's development efforts “already diminished” even before Mr Starmer's defence spending announcement.
“If the government continues to spend this volume of aid in the UK, once the aid budget has been slashed further, there will be little left to spend on what it’s intended for,” she said. “This will mean more children without enough to eat, more women dying in childbirth, more people facing poverty and more lives lost.”
International comparison
Britain is not the only country facing this issue. In Austria, Canada, and Italy, apparent surges in the aid budget from 2022 were matched by a much larger slice going on “in-donor refugee costs”.
A Swedish civil society group, Concord, spoke of a foreign aid “inflation bubble”. Austria also spoke of a temporary rise and fall when paying for Covid-19 vaccines.
Germany's most recent figures show it spending 19 per cent of aid on asylum seekers at home. Without that money, it would have missed the 0.7 per cent target.
A leaked draft of a German coalition agreement currently being negotiated in Berlin shows one version in which the 0.7 per cent target would be scrapped and the Development Ministry abolished. Another version would stick to 0.7 per cent and merely seek to “reduce overlap”.
In Ireland, almost half of aid spending in 2023 went on supporting Ukrainian refugees. Without that, aid spending was not even 0.4 per cent of GDP.
With US aid now under severe threat from President Donald Trump and efficiency envoy Elon Musk, Britain and other European states will find themselves facing growing calls to make more cuts. But as Mr Starmer's example shows, filling an American void in Nato spending defence is likely to prove a higher priority.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
RESULTS FOR STAGE 4
Stage 4 Dubai to Hatta, 197 km, Road race.
Overall leader Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Caleb Ewan AUS (Lotto - Soudal) 2. Matteo Moschetti ITA (Trek - Segafredo) 3. Primoz Roglic SLO (Team Jumbo - Visma)
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Heather, the Totality
Matthew Weiner,
Canongate
Bullet%20Train
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20David%20Leitch%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Brad%20Pitt%2C%20Aaron%20Taylor-Johnson%2C%20Brian%20Tyree%20Henry%2C%20Sandra%20Bullock%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Company%20profile
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Match info
Uefa Champions League Group C
Liverpool v Napoli, midnight
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
Killing of Qassem Suleimani
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Mohammed bin Zayed Majlis
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The biog
Siblings: five brothers and one sister
Education: Bachelors in Political Science at the University of Minnesota
Interests: Swimming, tennis and the gym
Favourite place: UAE
Favourite packet food on the trip: pasta primavera
What he did to pass the time during the trip: listen to audio books
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%C2%A0profile
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Results
6.30pm Madjani Stakes Rated Conditions (PA) I Dh160,000 I 1,900m I Winner: Mawahib, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)
7.05pm Maiden Dh150,000 I 1,400m I Winner One Season, Antonio Fresu, Satish Seemar
7.40pm: Maiden Dh150,000 I 2,000m I Winner Street Of Dreams, Pat Dobbs, Doug Watson
8.15pm Dubai Creek Listed I Dh250,000 I 1,600m I Winner Heavy Metal, Royston Ffrench, Salem bin Ghadayer
8.50pm The Entisar Listed I Dh250,000 I 2,000m I Winner Etijaah, Dane O’Neill, Doug Watson
9.25pm The Garhoud Listed I Dh250,000 I 1,200m I Winner Muarrab, Dane O’Neill, Ali Rashid Al Raihe
10pm Handicap I Dh160,000 I 1,600m I Winner Sea Skimmer, Patrick Cosgrave, Helal Al Alawi
F1 2020 calendar
March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
COMPANY%20PROFILE
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Zayed Sustainability Prize
