A major national security think tank has issued a stark warning that British aid money intended for civilians in war zones is being systematically looted by militant organisations, with as much as £300 million potentially ending up in the coffers of terror groups each year.
The Hidden Aid Scandal Exposed
According to a damning new report from the Henry Jackson Society (HJS), schemes designed to provide vital support to vulnerable populations are being exploited by groups including Hamas, the Houthis, and Boko Haram. The research identifies the UK's Cash and Voucher Assistance (CVA) programme as being particularly vulnerable to abuse, labelling it potentially 'Britain's biggest hidden aid scandal'.
The UK Government does not publicly disclose how much of its aid budget is distributed as direct cash payments. However, analysis by the HJS estimates that Britain handed out between £225 million and £310 million in cash aid during 2024. While not all of this sum is misappropriated, the report asserts that a significant portion is captured by militants who control the infrastructure in conflict regions.
How Militants Capture British Aid Cash
The mechanism of diversion is alarmingly straightforward. In areas like Gaza, Yemen, and Nigeria, militant factions often exert control over key economic chokepoints, including local markets, money-changers, supply chains, and checkpoints. Consequently, any cash injected into these economies becomes a direct revenue stream for the armed groups.
Andrew Fox, a senior research fellow at HJS and author of the report titled 'Cash to Terror', stated: 'We are handing out up to £300 million a year in cash - and in places like Gaza, Yemen and Nigeria, that money is being bled off by militants before it ever reaches civilians.'
The report details specific examples of this systemic skimming:
- In Gaza, Hamas-linked money-changers are reportedly taking a cut of 20 to 40 percent from the $42.5 million in aid cash delivered in recent weeks. Civilians are even forced to repurchase stolen aid supplies in Hamas-controlled markets.
- In Yemen, which received $161 million in aid vouchers last year, over 10 percent of food aid is stolen, while Houthi rebels impose taxes on traders and aid trucks.
- In Nigeria, militant groups cream off funds from the $284 million aid voucher scheme by taxing fisheries, livestock, farms, and transport routes, some of which are under Boko Haram's control.
Calls for Urgent Reform and Transparency
Fox warned of the profound implications, noting: 'You can do all the audits you like in London - but if you inject cash into a warzone controlled by extremists, the extremists take their cut first. Britain is in real danger of funding both sides of multiple conflicts without even realising it.'
Globally, an estimated 18 to 22 percent of all humanitarian aid, amounting to $7-10 billion annually, is now delivered as cash. The UK contributed £1.6 billion to UN agencies in 2024, which are heavily reliant on CVA programmes.
In response to its findings, the Henry Jackson Society has issued several urgent recommendations:
- The UK must provide full transparency on the scale of its cash-based aid spending.
- Independent audits must be conducted on the ground in conflict zones to track the flow of money.
- Aid should be suspended in areas controlled by proscribed terrorist organisations.
- The UN and non-governmental organisations must tighten their financial controls or risk losing UK funding.
The Foreign, Commonwealth & Development Office has been approached for comment on the report's alarming conclusions. The revelations pose serious questions about the oversight of Britain's multi-billion-pound aid budget and its unintended consequences in some of the world's most volatile regions.
