Ukrainian refugees in the United Kingdom face growing uncertainty over their housing situation after the government announced a reduction in financial support for those hosting refugees through the Homes for Ukraine scheme. From January 1, 2027, monthly “thank you” payments to hosts will drop from £350 to £100, a 70% cut that has alarmed both refugees and hosts alike.
The scheme was established following Russia’s invasion of Ukraine in February 2022 and has aided approximately 181,000 Ukrainians seeking refuge in the UK. Alongside reduced host payments, local authorities will also see decreased funding—from £5,900 to £3,300 per refugee—to help cover program delivery costs.
Refugees and Hosts Express Anxiety Over Funding Cuts
Many Ukrainian refugees say the reduction threatens their housing stability. Tetiana, a 73-year-old who fled Kharkiv and has lived with her host for over two years, fears losing her accommodation due to the financial impact on her host. She cannot work because of age and mobility challenges and faces an uncertain future if her hosting arrangement ends.
Nataliya Rumyantseva, hosting her mother—the first Ukrainian refugee to arrive post-invasion—criticized the move. She emphasized the emotional and practical support refugees need upon arrival, warning that transforming hosting into a commercial rental arrangement would be “cruel.” Similarly, a sponsor from Greenwich, who lost his job shortly after becoming a host, described the payments as a vital lifeline, expressing deep concern over the cut.
Government Response and Proposed Changes
The Ministry of Housing, Communities and Local Government (MHCLG) conveyed in a written parliamentary statement that the decision aims to sustain the scheme’s long-term viability and maintain essential support. It noted the transition from an emergency response toward a more established program as the reasoning behind the funding reductions.
One government proposal allows hosts to switch their status to landlords and charge refugees rent. However, some hosts feel this shift betrays the spirit of the scheme, which was founded on goodwill and emergency humanitarian aid.
Impact and Outlook
The Homes for Ukraine scheme has distributed over £1.81 billion in support since its inception. Still, with looming payment cuts, refugees and hosts alike confront increased insecurity regarding housing stability. The scheme remains open, but the evolving funding model raises questions about its future accessibility for vulnerable Ukrainians in the UK.
