Britain will not have to pay Rwanda millions over asylum deal, court rules - Headlines news and analysis from Global Banking & Finance Review
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Britain will not have to pay Rwanda millions over asylum deal, court rules

Published by Global Banking & Finance Review

Posted on June 1, 2026

2 min read

· Last updated: June 1, 2026

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Court Rules UK Not Liable for Rwanda Asylum Payment After Deal Canceled

By Stephanie van den Berg

UK-Rwanda Asylum Deal and Court Ruling

THE HAGUE, June 1 (Reuters) - Britain will not have to pay Rwanda tens of millions of pounds over a canceled asylum deal, the Permanent Court of Arbitration said on Monday.

Background of the Asylum Deal

The Hague-based body said it had rejected all financial claims made by Rwanda, which had argued Britain still needed to honour the terms of the deal which Prime Minister Keir Starmer cancelled in 2024.

Cancellation by Prime Minister Keir Starmer

After taking office that year, Starmer scrapped the prior Conservative government's asylum plan, under which Rwanda would have been paid to take in migrants who had illegally arrived in Britain.

Financial Claims and Court Decision

 Kigali was asking for at least £60 million ($80 million), the court documents showed.

The three-judge panel found by a majority that in November 2024, Rwanda in diplomatic notes agreed "to forgo any additional payments by the United Kingdom in April 2025 and April 2026", the court said.

The details were released on Monday in excerpts of the ruling which the court said it made on May 15.

Impact and Reactions

In the end only four people went voluntarily to Rwanda under the asylum agreement, which ran into legal challenges before its cancellation. 

Strained Relations and Regional Context

Relations between Britain and Rwanda soured last year when London paused some aid over the Rwandan role in the war in Democratic Republic of Congo. Rwanda has faced global pressure over accusations that it supports the M23 rebel group in eastern Congo.

Rwanda's Response to Accusations

Kigali denies backing M23 and has blamed Congolese and Burundian forces for fighting that has killed thousands and displaced hundreds of thousands in the past year.

Exchange Rate Information

($1=0.7428 pounds)

($1 = 0.7431 pounds)

(Reporting by Stephanie van den Berg; Editing by Sharon Singleton)

Key Takeaways

  • The Permanent Court of Arbitration dismissed Rwanda’s demand for at least £60 million (or two claims of £50 million each) after the UK requested Rwanda to forgo future payments in diplomatic notes in November 2024 (apnews.com).
  • Only four individuals were ever relocated to Rwanda under the scheme before it was scrapped by Prime Minister Keir Starmer in 2024 (apnews.com).
  • The ruling may shape how future migration agreements are enforced; the dispute also unfolded amid tensions—London suspended aid over Rwanda’s alleged involvement in regional conflicts, which Kigali denies (ibanet.org).

References

Frequently Asked Questions

Why was Britain asked to pay Rwanda over the asylum deal?
Rwanda claimed Britain needed to honor the financial terms of the canceled asylum agreement by making additional payments.
What did the Permanent Court of Arbitration decide?
The court rejected Rwanda's financial claims and ruled that the UK is not required to make additional payments after the deal was canceled.
Who canceled the UK-Rwanda asylum agreement?
Prime Minister Keir Starmer canceled the prior Conservative government's asylum plan in 2024.
How much did Rwanda demand from Britain?
Rwanda was seeking at least £60 million (about $80 million) in compensation.
How many people were relocated to Rwanda under the deal?
Only four people went voluntarily to Rwanda before the agreement was canceled.

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