Ukrainians in UK fear homelessness over host scheme funding cuts

The UK government has cut monthly support payments to hosts of the Homes for Ukraine scheme by 70%, reducing the "thank you" allowance from £350 to £100 starting in January 2027. The decision has prompted concerns among Ukrainian refugees and their hosts about potential homelessness and the sustainability of the hosting arrangement.

The Funding Changes

The Homes for Ukraine scheme was established following Russia's invasion in February 2022. Since its launch, it has provided accommodation for 181,000 of the 234,000 Ukrainian refugees who have sought sanctuary in the UK.

On 15 September, the Ministry of Housing, Communities and Local Government announced in a written statement to parliament that hosting payments would be slashed. Beyond the reduction to individual hosts, local authorities will also face cuts to their per-arrival contributions, falling from £5,900 to £3,300. These changes take effect from 1 January 2027.

Concerns Over Homelessness

Tetiana, a 73-year-old Ukrainian who has been hosted for more than two years, expressed alarm after receiving the government's notification of the changes. She stated that the reduced payments could undermine her host's ability to continue sheltering her.

"I feel that this financial change could impact on my host's ability to host me. If the hosting comes to an end, I don't know where I will go and how I can start again. I can't work because of my age and because I have mobility problems. I fled from Kharkiv, which is close to the Russia frontline, so I can't go back to Ukraine."

Tetiana, who cannot return to her home region near the Russian front, voiced uncertainty about her options and the prospect of affording rent if her hosting arrangement ends.

Hosts' Perspectives

Nataliya Rumyantseva, who is hosting her mother—the first Ukrainian to arrive in the UK after the invasion—said the funding cuts would have serious consequences. She noted that refugees arriving from Ukraine are traumatised and require time to adjust and learn the language.

"When refugees arrive here from Ukraine, they are shellshocked and need time to adapt and learn the language. If hosting changes to become a more commercial rental arrangement, I think that's cruel."

A host from Greenwich, who became a sponsor in May 2022, reported that the payment reduction has left him uncertain whether he can continue hosting. He noted that despite not volunteering for financial gain, the payments had become essential after losing his job shortly after becoming a sponsor.

As the January 2027 deadline approaches, both refugees and their hosts face mounting pressure regarding the long-term viability of the scheme and the housing security of some of the most vulnerable individuals currently residing in the UK.