Rwanda Demands £100m from UK for Scrapped Asylum Deal

Rwanda has filed an international arbitration case against the UK, claiming it is owed £100m in payments due under a cancelled asylum agreement.

The agreement, signed by the previous Conservative government, aimed to send some asylum seekers to Rwanda, with the UK agreeing to make payments to the East African nation for hosting them.

Rwanda’s government stated it decided to pursue claims in arbitration after facing the UK’s “intransigence on these issues”.

A Home Office spokesperson said: “The previous government’s Rwanda policy wasted vast sums of taxpayer time and money. We will robustly defend our position to protect British taxpayers.”

The Rwandan government accuses the UK of breaching the deal by publicly setting out the financial terms, failing to make £100m in payments, and refusing to resettle vulnerable refugees from Rwanda.

The UK spent approximately £700m on the Rwanda policy, intended to deter migrants from crossing the English Channel in small boats. Only four volunteers arrived in Rwanda before the plan was scrapped.

The deal included a break clause allowing either party to terminate the agreement with written notice. The £700m included £290m in payments to Rwanda, with a further £100m due under the treaty.

Rwanda’s government said the UK had “made clear that it has no intention of making any further payment” under the treaty or honouring its commitment to resettle vulnerable refugees in the UK.

The UK notified Rwanda of the treaty’s termination after responding to Rwanda’s notice of arbitration in November last year. The formal termination will take effect on 16 March 2026.

The Home Office has been contacted for further comment. The Permanent Court of Arbitration (PCA) will handle the dispute, with the authority to issue binding, final rulings if the parties cannot resolve their differences.

Conservative shadow home secretary Chris Philp said the legal action was “yet another catastrophic consequence of Labour’s decision to scrap the Rwanda scheme before it even started”.

The UK government previously said it was assessing how much money could be recouped after scrapping the scheme. However, the Rwandan government has stated it is under “no obligation” to refund any money.

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