Latest news with #IndependentCommissionforAidImpact
Spectator
a day ago
- Business
- Spectator
Soaring asylum costs threaten aid budget, watchdog warns Labour
Immigration is never off the news agenda these days, as Brits remain concerned about the influx of people to the country while the cost of living crisis and housing pressures only seem to worsen. Last week Sir Keir Starmer sealed a 'one in, one out' migrant returns deal with France's President Emmanuel Macron which some number-crunching suggested is a little more akin to an, er, 17 in, one out set-up. The Labour lot have other borders-related problems on their plates too, however, as an independent watchdog has warned that the cost of supporting asylum seekers is set to absorb a whooping one-fifth of the gutted aid budget. Crikey! After Chancellor Rachel Reeves announced in last month's spending review that the aid budget would be slashed – from 0.5 per cent to 0.3 per cent by 2027 – the Independent Commission for Aid Impact has today raised concerns about ballooning refugee costs. Under international aid rules, a portion of the costs of an asylum seeker's first year in the UK qualifies as official development assistance and therefore comes out of the aid budget. As such, the watchdog has also warned about soaring costs of housing asylum seekers in the UK – with the price tag rising from £628 million in 2020 to a staggering £4.3bn in 2023. The surging cost of asylum provision leaves a fraction (0.24 per cent) gross national income for overseas development, the lowest amount of cash available for poverty reduction and humanitarian assistance for 50 years. Another Live Aid, anyone..? By the watchdog's figures, the UK spent three times as much aid per refugee compared to other major European countries in 2023. Perhaps, the report suggests, it's got something to do with 32,000 asylum seekers living in expensive, taxpayer-funded hotels. Well, Reeves has more on this, too. In her spending review, the Chancellor promised to stop using hotels to house asylum seekers by 2029 – claiming the move would save £1bn. The Home Office will instead look to increase the capacity of sites like the Wethersfield RAF base in Essex. Problem solved? Mr S isn't so sure. Quizzed by a House of Lords Committee last month whether he believed the government would succeed in their intention to stop using hotels, independent chief inspector of borders and immigration David Bolt replied: Frankly, I do not think that it will be achieved… There is simply not sufficient housing stock to be able to deal with the sorts of numbers that are in the system… It is really challenging. Oh dear. It would be putting it mildly to say that the slashing of the UK's aid budget has not gone smoothly. Reeves's announcement prompted the immediate resignation of Anneliese Dodds, the minister who was actually responsible for international aid – and former PM Gordon Brown unleashed a scathing tirade about the move during a recent speech in London. Will this latest watchdog warning persuade the government to better tackle the holes in the asylum system? Watch this space…
The National
a day ago
- Business
- The National
UK draining aid budget with asylum seeker hotel policy
Some £1.8 billion of the projected £8.9 billion budget for overseas assistance could be spent on supporting refugees and asylum seekers in Britain in 2027-28, a report by the Independent Commission for Aid Impact (ICAI) says. THE UK's shrinking aid budget is being drained by the Government's prolonged use of asylum hotels — diverting life-saving global development funds while failing to provide refugees with humane and timely support, a watchdog has warned. Despite the June spending review suggesting a reduction in such costs over the next three years, the asylum seeker system is still on course to absorb a 'significant portion' of total aid funding, leaving as little as 0.24% of gross national income for global development, according to the watchdog. Chancellor Rachel Reeves has announced plans to end the use of hotels to house asylum seekers by the end of this Parliament after the National Audit Office said accommodation costs could hit £15.3 billion over a 10-year period. READ MORE: Heckling of Nigel Farage will only help reinforce Reform UK's mantra But progress in bringing down aid spending on so-called in-donor refugee costs remains 'slow', the ICAI said. International OECD rules allow governments to use their aid budgets to cover some of the costs of helping people claiming asylum in the first year of entering a country, such as housing and food. According to ICAI calculations, asylum costs are expected to take up £2.2 billion of total UK official development assistance (ODA) funding for 2026-27, £1.8 billion the following year and £1.5 billion by 2028-29. The UK Government slashed Britain's aid budget earlier this year from 0.5% of gross national income to 0.3% in order to pay for increased defence spending. Total ODA spending is now expected to fall from £10 billion in 2026-27 to £8.9 billion the following year before increasing slightly to £9.4 billion in 2028-29. This means a fifth of the total aid spend in 2027-28 is expected to go towards asylum costs, before dipping to around a sixth in 2028-29. ICAI commissioner Harold Freeman, who led the new report, acknowledged the Government had already taken some steps to address 'flaws in the system' but said further changes would be likely to be needed. READ MORE: Russell Findlay under fire for £150k taxpayer cash given to ex-spin doctor's firms He said: 'The UK's development programme is at a turning point, with budget reductions coming against a backdrop of increasing global conflicts, climate threats and rising humanitarian needs. 'At the same time, UK asylum costs are likely to continue to absorb a significant proportion of our aid funding. 'The Government has already taken steps to address some of the flaws in the system for managing aid identified by past ICAI work. 'But further changes will likely be needed to maximise the impact and value for money of the remaining development budget.' The UK Government has been contacted for comment. Last year, the watchdog raised 'value for money' concerns after some 28% – or £4.3 billion – of all UK aid in 2023 was spent on hosting refugees and asylum seekers in Britain under the previous Conservative government. The amount of ODA spending on in-house refugee costs has risen dramatically since 2020, in part due to visa schemes for Afghan and Ukrainian people but largely linked to lengthy stays in so-called asylum hotels, the ICAI said. In response to its latest report, the Tories said the 'eye-watering cost' of housing asylum seekers was 'utterly indefensible, particularly when so many people are struggling to get by'. Shadow Home Office minister Katie Lam said: 'This broken system rewards delay and indecision, while the British taxpayer foots the bill. 'Those who have no right to stay here should not be languishing in hotels; they should be detained and deported within days – not years. 'We need a migration system that is firm, fair, and fast. 'Over the past 12 months, Keir Starmer has systematically dismantled every deterrent, while his joke of a migrant deal agreed with France last week will do nothing to stem the flow of migrants risking their lives to cross the Channel.' The One campaign, which aims to reduce poverty in Africa, said the report confirmed that UK aid had been 'stretched to breaking point'. Executive director Adrian Lovett said: 'While it's right that refugees are housed in safe accommodation, paying for this from the diminished international aid budget means there will be even less support for the world's most vulnerable people at a time of growing global need.' Lovett added: 'The UK is at its best when it delivers a strong and growing aid budget, but also uses its political and diplomatic muscle to help create the conditions for sustainable solutions. 'We look to ministers to be creative and ambitious on both fronts in the months and years ahead.'
Leader Live
a day ago
- Business
- Leader Live
Asylum costs set to take up fifth of UK's shrunken aid budget, watchdog warns
Some £1.8 billion of the projected £8.9 billion budget for overseas assistance could be spent on supporting refugees and asylum seekers in Britain in 2027-28, a report by the Independent Commission for Aid Impact (ICAI) says. Despite the June spending review suggesting a reduction in such costs over the next three years, they are still on course to absorb a 'significant portion' of total aid funding, according to the watchdog. Chancellor Rachel Reeves has announced plans to end the use of hotels to house asylum seekers by the end of this Parliament after the National Audit Office said accommodation costs could hit £15.3 billion over a 10-year period. But progress in bringing down aid spending on so-called in-donor refugee costs remains 'slow', the ICAI said. International OECD rules allow governments to use their aid budgets to cover some of the costs of helping people claiming asylum in the first year of entering a country, such as housing and food. According to ICAI calculations, asylum costs are expected to take up £2.2 billion of total UK official development assistance (ODA) funding for 2026-27, £1.8 billion the following year and £1.5 billion by 2028-29. The Government slashed Britain's aid budget earlier this year from 0.5% of gross national income to 0.3% in order to pay for increased defence spending. Total ODA spending is now expected to fall from £10 billion in 2026-27 to £8.9 billion the following year before increasing slightly to £9.4 billion in 2028-29. This means a fifth of the total aid spend in 2027-28 is expected to go towards asylum costs, before dipping to around a sixth in 2028-29. ICAI commissioner Harold Freeman, who led the new report, acknowledged the Government had already taken some steps to address 'flaws in the system' but said further changes would be likely to be needed. He said: 'The UK's development programme is at a turning point, with budget reductions coming against a backdrop of increasing global conflicts, climate threats and rising humanitarian needs. 'At the same time, UK asylum costs are likely to continue to absorb a significant proportion of our aid funding. 'The Government has already taken steps to address some of the flaws in the system for managing aid identified by past ICAI work. 'But further changes will likely be needed to maximise the impact and value for money of the remaining development budget.' The Government has been contacted for comment. Last year, the watchdog raised 'value for money' concerns after some 28% – or £4.3 billion – of all UK aid in 2023 was spent on hosting refugees and asylum seekers in Britain under the previous Conservative government. The amount of ODA spending on in-house refugee costs has risen dramatically since 2020, in part due to visa schemes for Afghan and Ukrainian people but largely linked to lengthy stays in so-called asylum hotels, the ICAI said. In response to its latest report, the Tories said the 'eye-watering cost' of housing asylum seekers was 'utterly indefensible, particularly when so many people are struggling to get by'. Shadow Home Office minister Katie Lam said: 'This broken system rewards delay and indecision, while the British taxpayer foots the bill. 'Those who have no right to stay here should not be languishing in hotels; they should be detained and deported within days – not years. 'We need a migration system that is firm, fair, and fast. 'Over the past 12 months, Keir Starmer has systematically dismantled every deterrent, while his joke of a migrant deal agreed with France last week will do nothing to stem the flow of migrants risking their lives to cross the Channel.' The One campaign, which aims to reduce poverty in Africa, said the report confirmed that UK aid had been 'stretched to breaking point'. Executive director Adrian Lovett said: 'While it's right that refugees are housed in safe accommodation, paying for this from the diminished international aid budget means there will be even less support for the world's most vulnerable people at a time of growing global need.' Mr Lovett added: 'The UK is at its best when it delivers a strong and growing aid budget, but also uses its political and diplomatic muscle to help create the conditions for sustainable solutions. 'We look to ministers to be creative and ambitious on both fronts in the months and years ahead.'
South Wales Guardian
a day ago
- Business
- South Wales Guardian
Asylum costs set to take up fifth of UK's shrunken aid budget, watchdog warns
Some £1.8 billion of the projected £8.9 billion budget for overseas assistance could be spent on supporting refugees and asylum seekers in Britain in 2027-28, a report by the Independent Commission for Aid Impact (ICAI) says. Despite the June spending review suggesting a reduction in such costs over the next three years, they are still on course to absorb a 'significant portion' of total aid funding, according to the watchdog. Chancellor Rachel Reeves has announced plans to end the use of hotels to house asylum seekers by the end of this Parliament after the National Audit Office said accommodation costs could hit £15.3 billion over a 10-year period. But progress in bringing down aid spending on so-called in-donor refugee costs remains 'slow', the ICAI said. International OECD rules allow governments to use their aid budgets to cover some of the costs of helping people claiming asylum in the first year of entering a country, such as housing and food. According to ICAI calculations, asylum costs are expected to take up £2.2 billion of total UK official development assistance (ODA) funding for 2026-27, £1.8 billion the following year and £1.5 billion by 2028-29. The Government slashed Britain's aid budget earlier this year from 0.5% of gross national income to 0.3% in order to pay for increased defence spending. Total ODA spending is now expected to fall from £10 billion in 2026-27 to £8.9 billion the following year before increasing slightly to £9.4 billion in 2028-29. This means a fifth of the total aid spend in 2027-28 is expected to go towards asylum costs, before dipping to around a sixth in 2028-29. ICAI commissioner Harold Freeman, who led the new report, acknowledged the Government had already taken some steps to address 'flaws in the system' but said further changes would be likely to be needed. He said: 'The UK's development programme is at a turning point, with budget reductions coming against a backdrop of increasing global conflicts, climate threats and rising humanitarian needs. 'At the same time, UK asylum costs are likely to continue to absorb a significant proportion of our aid funding. 'The Government has already taken steps to address some of the flaws in the system for managing aid identified by past ICAI work. 'But further changes will likely be needed to maximise the impact and value for money of the remaining development budget.' The Government has been contacted for comment. Last year, the watchdog raised 'value for money' concerns after some 28% – or £4.3 billion – of all UK aid in 2023 was spent on hosting refugees and asylum seekers in Britain under the previous Conservative government. The amount of ODA spending on in-house refugee costs has risen dramatically since 2020, in part due to visa schemes for Afghan and Ukrainian people but largely linked to lengthy stays in so-called asylum hotels, the ICAI said. In response to its latest report, the Tories said the 'eye-watering cost' of housing asylum seekers was 'utterly indefensible, particularly when so many people are struggling to get by'. Shadow Home Office minister Katie Lam said: 'This broken system rewards delay and indecision, while the British taxpayer foots the bill. 'Those who have no right to stay here should not be languishing in hotels; they should be detained and deported within days – not years. 'We need a migration system that is firm, fair, and fast. 'Over the past 12 months, Keir Starmer has systematically dismantled every deterrent, while his joke of a migrant deal agreed with France last week will do nothing to stem the flow of migrants risking their lives to cross the Channel.' The One campaign, which aims to reduce poverty in Africa, said the report confirmed that UK aid had been 'stretched to breaking point'. Executive director Adrian Lovett said: 'While it's right that refugees are housed in safe accommodation, paying for this from the diminished international aid budget means there will be even less support for the world's most vulnerable people at a time of growing global need.' Mr Lovett added: 'The UK is at its best when it delivers a strong and growing aid budget, but also uses its political and diplomatic muscle to help create the conditions for sustainable solutions. 'We look to ministers to be creative and ambitious on both fronts in the months and years ahead.'
Rhyl Journal
a day ago
- Business
- Rhyl Journal
Asylum costs set to take up fifth of UK's shrunken aid budget, watchdog warns
Some £1.8 billion of the projected £8.9 billion budget for overseas assistance could be spent on supporting refugees and asylum seekers in Britain in 2027-28, a report by the Independent Commission for Aid Impact (ICAI) says. Despite the June spending review suggesting a reduction in such costs over the next three years, they are still on course to absorb a 'significant portion' of total aid funding, according to the watchdog. Chancellor Rachel Reeves has announced plans to end the use of hotels to house asylum seekers by the end of this Parliament after the National Audit Office said accommodation costs could hit £15.3 billion over a 10-year period. But progress in bringing down aid spending on so-called in-donor refugee costs remains 'slow', the ICAI said. International OECD rules allow governments to use their aid budgets to cover some of the costs of helping people claiming asylum in the first year of entering a country, such as housing and food. According to ICAI calculations, asylum costs are expected to take up £2.2 billion of total UK official development assistance (ODA) funding for 2026-27, £1.8 billion the following year and £1.5 billion by 2028-29. The Government slashed Britain's aid budget earlier this year from 0.5% of gross national income to 0.3% in order to pay for increased defence spending. Total ODA spending is now expected to fall from £10 billion in 2026-27 to £8.9 billion the following year before increasing slightly to £9.4 billion in 2028-29. This means a fifth of the total aid spend in 2027-28 is expected to go towards asylum costs, before dipping to around a sixth in 2028-29. ICAI commissioner Harold Freeman, who led the new report, acknowledged the Government had already taken some steps to address 'flaws in the system' but said further changes would be likely to be needed. He said: 'The UK's development programme is at a turning point, with budget reductions coming against a backdrop of increasing global conflicts, climate threats and rising humanitarian needs. 'At the same time, UK asylum costs are likely to continue to absorb a significant proportion of our aid funding. 'The Government has already taken steps to address some of the flaws in the system for managing aid identified by past ICAI work. 'But further changes will likely be needed to maximise the impact and value for money of the remaining development budget.' The Government has been contacted for comment. Last year, the watchdog raised 'value for money' concerns after some 28% – or £4.3 billion – of all UK aid in 2023 was spent on hosting refugees and asylum seekers in Britain under the previous Conservative government. The amount of ODA spending on in-house refugee costs has risen dramatically since 2020, in part due to visa schemes for Afghan and Ukrainian people but largely linked to lengthy stays in so-called asylum hotels, the ICAI said. In response to its latest report, the Tories said the 'eye-watering cost' of housing asylum seekers was 'utterly indefensible, particularly when so many people are struggling to get by'. Shadow Home Office minister Katie Lam said: 'This broken system rewards delay and indecision, while the British taxpayer foots the bill. 'Those who have no right to stay here should not be languishing in hotels; they should be detained and deported within days – not years. 'We need a migration system that is firm, fair, and fast. 'Over the past 12 months, Keir Starmer has systematically dismantled every deterrent, while his joke of a migrant deal agreed with France last week will do nothing to stem the flow of migrants risking their lives to cross the Channel.' The One campaign, which aims to reduce poverty in Africa, said the report confirmed that UK aid had been 'stretched to breaking point'. Executive director Adrian Lovett said: 'While it's right that refugees are housed in safe accommodation, paying for this from the diminished international aid budget means there will be even less support for the world's most vulnerable people at a time of growing global need.' Mr Lovett added: 'The UK is at its best when it delivers a strong and growing aid budget, but also uses its political and diplomatic muscle to help create the conditions for sustainable solutions. 'We look to ministers to be creative and ambitious on both fronts in the months and years ahead.'
