Amid rising global poverty, insecurity, and climate shocks, the United Kingdom government gave the Home Office a “blank cheque” to spend a third of its aid budget at home last year, causing “major disruption” to international development, according to an independent watchdog’s report.
The Independent Commission for Aid Impact analyzed government documents and estimated £3.5 billion (about $4.3 billion) was spent on “in-donor refugee costs” in 2022 — including on hotels for refugees in the country’s fractured asylum system. The majority, nearly £2.4 billion, was spent by the Home Office, and the rest by four other government departments.
It is the first time the figures have been disclosed, with the government having received criticism in the past for a lack of transparency on the issue. However, the impact on U.K. aid has been clear since last year. FCDO's proportion of the U.K. aid budget for the fiscal year ending March 2023 was initially estimated to be £9.3 billion. Even after the government committed an extra £1 billion to pay for in-donor refugee costs in the Autumn Statement, lavish Home Office spending still forced the Foreign, Commonwealth & Development Office into a 30% cut to bilateral aid, and made it impossible for officials to plan an aid strategy.