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Asylum Hotel Bills Push UK Aid to Lowest Ratio in Over 50 Years

An independent watchdog warns that long-term accommodation costs will consume one-fifth of the reduced aid budget, forcing overseas development assistance to a record low

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Overview

  • The Independent Commission for Aid Impact warns that UK aid for poorer nations will fall to 0.24% of GNI, marking the lowest rate in more than five decades
  • Home Office figures indicate about 32,000 asylum seekers were housed in hotels at the end of March, down from over 50,000 in June 2023
  • June’s spending review reduced the UK aid target from 0.5% to 0.3% of national income to reallocate funds to defence priorities
  • Projected costs for asylum accommodation will total £1.8 billion in 2027/28, reflecting government efforts to phase out hotel use by 2029
  • High hotel expenses have driven UK in-donor refugee spending to double the OECD donor average and triple levels seen in France, Germany and Sweden