Rwanda Seeks £100m From UK Over Cancelled Asylum Deal

The Rwandan government is claiming £100 million from the UK following the cancellation of a controversial asylum agreement by Prime Minister Sir Keir Starmer. Rwanda has filed an international arbitration case, alleging that the UK breached the terms of the deal to send some asylum seekers to the East African nation.

The original agreement, signed under Boris Johnson’s Conservative government in 2022, committed the UK to make payments to Rwanda for hosting asylum seekers who had arrived illegally in Britain. Rwanda says it has pursued arbitration after facing the UK’s “intransigence on these issues.”

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

Rwanda’s statement outlined three main claims under the Migration and Economic Development Partnership: The UK publicly disclosed financial terms of the agreement.They failed to make payments totaling £100 million. They refused to arrange the resettlement of vulnerable refugees from Rwanda.

The partnership included provisions to resettle a small number of vulnerable refugees already in Rwanda, many with complex needs such as severe health conditions. Despite a planned spend of £700 million, only four volunteers arrived in Rwanda before the deal was cancelled. Sir Keir Starmer called the plan “dead and buried” shortly after Labour won the 2024 general election.

Under the treaty, the UK was due to pay an additional £100 million across 2025-26 and 2026-27, plus £120 million upon the transfer of 300 people to Rwanda. In November 2024, the UK requested Rwanda forgo two payments of £50 million due in April 2025 and April 2026, but Rwanda insisted the amounts remained payable if new financial terms were not agreed.

Rwanda said the UK has “made clear that it has no intention of making any further payment” under the treaty or fulfilling its resettlement commitments. The UK formally notified Rwanda of the treaty’s termination, effective 16 March 2026.

Any unresolved disputes under the agreement are to be handled by the Permanent Court of Arbitration (PCA) in The Hague, which can issue binding rulings. The PCA has not yet scheduled a timetable for the case, which could take years to resolve.

Conservative shadow home secretary Chris Philp criticised Labour, saying the legal action was “yet another catastrophic consequence of Labour’s decision to scrap the Rwanda scheme before it even started” and warned that taxpayers could face a huge bill.

The UK government has said it is reviewing whether any funds could be recouped, while Rwanda maintains it is under “no obligation” to refund any money.