UK pauses overseas aid payments amid concerns about overspending on war in Ukraine
- Payments above US$1.2 million are barred unless critical to life or their blockage leads to additional costs – new contracts also paused
- The move is a blow to recipients already reeling from the country’s decision to slash its aid budget in the wake of the Covid-19 pandemic
The UK temporarily paused overseas development aid that is not deemed critical because of concerns about rising pressure on government budgets, people familiar with the matter said.
The Foreign Office informed some staff a freeze is necessary because crises including Russia’s war in Ukraine have led to additional expenditure that means the government is in danger of overspending, according to the people, who spoke on condition of anonymity.
Any payments above £1 million (US$1.2 million) are barred unless critical to life or unless their blockage leads to additional costs, they said. New contracts and activity linked to agreements that have yet to start are also being paused.
The new rules are in place until the autumn when a new prime minister will be able to make decisions on whether to stop or resume some aid payments and activities, one of the sources said. The pause essentially means that the UK is all but halting overseas aid payments for now.
The Foreign Office didn’t immediately respond to a request for comment.