The UK’s decision to cut the monthly "thank you" payment to people hosting Ukrainian refugees under the Homes for Ukraine scheme from £350 to £100 next year has prompted fears that many of those uprooted by Russia’s invasion could be left without a roof over their heads.
Launched after Russia invaded Ukraine in February 2022, the Homes for Ukraine scheme has become one of the principal routes for Ukrainians seeking refuge in Britain. According to government figures, the scheme and related sponsorship arrangements have provided support for around 181,000 of the roughly 234,000 Ukrainians who have since sought sanctuary in the UK.
The reduction represents a 70% cut in the monthly payment hosts receive and is due to take effect from next year. The payments were framed as a small financial acknowledgement for private citizens who opened their homes to displaced Ukrainians; the scale of the cut has led to immediate concern among beneficiaries and community groups about the stability of placements once the lower rate comes into force.
Advocates and those affected say the funding change raises the risk that some hosts will no longer be able or willing to continue hosting, increasing the likelihood that refugees will need to move at short notice. Local authorities face the prospect of having to find alternative accommodation for people who lose sponsorship arrangements, at a potential cost to councils and with attendant practical challenges for families and individuals.
The Homes for Ukraine scheme has been a key element of the UK’s response to the war, relying heavily on private sponsorship rather than government-managed reception centres. The forthcoming reduction in host payments shifts a significant part of the financial burden back onto private households and could complicate longer-term housing arrangements for Ukrainian guests.
It remains unclear how many hosts will withdraw following the payment cut, or what measures, if any, the government will take to mitigate displacement. For now, charities, community organisers and Ukrainian guests are bracing for disruption as the new payment level comes into force next year.