Council funding cut for Ukrainian refugee scheme

More than 100,000 people have sought sanctuary in the UK through the Homes for Ukraine scheme

The UK government is cutting the money it gives councils for helping Ukrainian refugees by almost half, blaming pressures on public finances.

Councils will receive £5,900 - down from £10,500 - for each Ukrainian refugee who arrives in their area.

The government said it faced tough decisions given the economic situation.

But sponsors hosting Ukrainians who have been in the UK for more than a year will receive an increase in "thank you" payments.

More than 100,000 Ukrainian nationals have arrived in the UK under the government's Homes for Ukraine scheme.

The initiative, which was launched in March, allows Ukrainians fleeing the war with Russia to come to the UK - if a sponsor agrees to provide accommodation for at least six months.

• New crisis looms for Ukrainians in the UK

• Ukrainian sponsor: Matches and visas take too long

• Ukraine refugee hosts should get £700 a month, says minister

At the moment, the scheme grants local authorities £10,500 for every Ukrainian to help them support the refugees and their hosts.

Ministers say they are cutting this funding from January, citing economic pressures and "the fact that a fraction of Ukrainian arrivals return to Ukraine".

The government also announced an increase in the payments made to sponsors.

Currently, this is £350 a month and will increase to £500 a month. But the higher amount will be paid only once the Ukrainian guest has been in the UK for a year.

Many Ukrainians and their hosts have complained that there is little help for them at the end of the six-month sponsorship period.

Homeless refugees

But sponsors will be able to receive payments for up to two years and if Ukrainians change sponsors, the increased payments will still be made.

The government has also announced £150m of extra funding that councils can apply for to help with the increasing number of Ukrainians who have been made homeless.

The latest figures show more than 2,000 families with children and 900 individuals had registered with councils as having nowhere to live.

A £500m fund will be available for councils to obtain housing to be used by those fleeing conflicts.

Levelling-up and Communities Secretary Michael Gove said: "We owe a special thanks to the tens of thousands of families across the UK who opened up their homes and hearts to Ukrainians fleeing war".

Dr Krish Kandiah, from the Sanctuary Foundation which supports refugees, said increasing thank-you payments would "help more hosts be able to continue in the face of the rise in the cost of living".

The Local Government Association, which represents councils across England, welcomed the extension of funding for new arrivals, but added: "We have concerns that the amount is to be reduced."