Homes for Ukraine ‘thank you’ payments to be raised after one year of hosting

Families who host Ukrainian refugees for more than a year are to receive increased payments in recognition of their ongoing support during the cost-of-living crisis, the Government has said.

Hosts under the Homes for Ukraine scheme will get £500 a month after their first 12 months of sponsorship, the Department for Levelling Up, Housing and Communities (DLUHC) said.

Councils will also be given money to help prevent homelessness among arrivals and to acquire more homes for people fleeing conflict in places such as Ukraine and Afghanistan.

But the sum local authorities receive for each Ukrainian refugee who arrives into their area under the scheme will be reduced “in light of wider pressures on the public finances”, DLUHC said.

Some 107,100 Ukrainians have arrived in the UK under the Homes for Ukraine scheme, with 144,600 visas issued, latest Government figures show.

DLUHC said the monthly thank you payments to hosts will be extended from 12 months to two years.

The increase – from £350 a month for the first year to £500 a month thereafter – is less than former refugees minister Lord Richard Harrington had been calling for.

Before stepping down in September, he said he had been lobbying for the payment to be doubled to £700 after six months.

In cases where sponsorship arrangements cannot continue, councils across the UK will be given £150 million to help Ukrainians move into their own homes and reduce the risk of homelessness.

It can also be used to prevent homelessness among other groups.

A separate £500 million Local Authority Housing Fund will enable councils in England to acquire housing stock for those fleeing conflicts, such as those in Ukraine and Afghanistan.

This is expected to provide up to 4,000 homes by 2024, DLUHC said, through buying housing stock, building new homes, converting non-residential properties, and refurbishing dilapidated or empty homes.

Amid the funding for housing, councils will receive a lower tariff payment for each Ukrainian refugee who arrives into their local area – £5,900 per person, down from £10,500.

This money can be spent on safeguarding and accommodation checks, support to help refugees rebuild their lives and integrate, and education and skills support, such as English language courses.

Secretary of State Michael Gove said: “We have stood firm with Ukraine but we owe special thanks to the tens of thousands of families across the UK who opened their homes and their hearts to Ukrainians fleeing war.

“In recognition of their ongoing support, I’m pleased to confirm that they will see their ‘thank you’ payments uplifted for their second year of sponsorship.”

Housing and homelessness minister Felicity Buchan said: “Hosting a Ukrainian family is a massive commitment and, from the amazing sponsors I’ve met, I also know that the rising cost of living is putting additional pressures on both household and local finances.

“That is why we are increasing ‘thank you’ payments to keep this incredibly successful programme going.

“But our work is not done yet. The crisis in Ukraine continues and I urge anyone who is able to to come forward and volunteer as a sponsor.”

The Association of Ukrainians in Great Britain said: “Ukrainians everywhere are grateful to the Government and the British people for opening their homes and hearts to Ukrainians fleeing their homes as a result of Russia’s illegal invasion of Ukraine.

“We welcome today’s announcement, which recognises the commitment of sponsors during difficult economic times, and will provide additional support and reassurance to Ukrainian families as they rebuild their lives and seek to overcome the trauma of war.”

Dr Krish Kandiah, a host and director of The Sanctuary Foundation, which helps refugees and sponsors, said: “The promise of more financial support for hosts is welcomed, as most households I am in touch with are delighted to be hosting Ukrainian refugees but the cost-of-living crisis has added unforeseen financial pressure on them.

“The £500 million fund to invest in housing is a brilliant innovation that will help Ukrainians and Afghans fleeing conflict but also, importantly, local people at risk of homelessness.”