The International Development Committee investigates the use of UK foreign aid for refugees in the UK.

The International Development Committee is scrutinizing the UK government’s allocation of foreign aid funds, particularly the portion spent on refugees and asylum seekers within the country. A session scheduled for 8 February 2023 will see ministers from the Foreign Office, Home Office, and HM Treasury give evidence on the rationale behind this controversial decision to spend a significant portion of the aid budget domestically.

In 2021, nearly 10% of the UK’s foreign aid budget, or approximately £1 in every £10, was spent on supporting refugees and asylum seekers in the UK. This expenditure was primarily driven by the Home Office, which saw its official development assistance (ODA) budget rise by 74.3%, amounting to over a billion pounds. The increase was attributed to the rising costs of accommodating and supporting asylum seekers in the UK, including expenses related to housing, subsistence, healthcare, and education.

The UK government argues that these expenses are legitimate under the guidelines set by the OECD’s Development Assistance Committee, which allows the costs incurred during the first year of an asylum seeker’s stay to be counted as ODA. However, the decision has sparked significant debate. Critics argue that the primary goal of ODA should be to promote economic development and welfare in developing countries, not to fund domestic services in the UK.

The inquiry will question whether this spending is both effective and ethical, especially in light of the UK’s reduction in international aid from 0.7% to 0.5% of Gross National Income (GNI). The Committee’s concerns center around whether the government’s spending priorities are in line with the original goals of ODA and whether funds could be better used to address poverty and development challenges in low- and middle-income countries.

The scrutiny of these funds comes amid broader debates on the efficiency of the UK’s foreign aid spending, with many calling for a clearer alignment between the UK’s international development objectives and its domestic policies. The inquiry will also examine if the government is meeting its international commitments while balancing domestic demands for refugee support.

This session marks a critical moment in the ongoing discussion about the future of UK foreign aid spending, with implications for both domestic refugee policies and the UK’s role in global development.