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

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· Last updated: June 1, 2026

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Britain will not have to pay Rwanda millions over asylum deal, court rules

Permanent Court of Arbitration Decision on UK-Rwanda Asylum Agreement

By Stephanie van den Berg

Background of the UK-Rwanda Asylum Deal

THE HAGUE, June 1 (Reuters) - Britain will not have to pay Rwanda tens of millions of pounds over the cancelled deal to deport asylum seekers to the East African nation, the Permanent Court of Arbitration said on Monday.

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 of the Asylum Plan

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.

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

Court Findings and Ruling Details

Financial Claims and Diplomatic Notes

The three-judge panel found by a majority that in November 2024, Rwanda agreed in diplomatic notes "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.

Implementation and Legal Challenges

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

Reactions from Rwanda and the UK

Rwandan Government Response

The Rwandan government said it respected the court's decision but said the issues were complex and open to different legal conclusions.

"Rwanda will continue to work constructively with international partners, guided by international norms and mutually beneficial cooperation," Rwandan government spokesperson Yolande Makolo said in a statement.

British Government Response

The British government said it had "robustly" defended its position.

"The previous government’s policy wasted time and £700 million of taxpayer money to send four volunteers to Rwanda," a spokesperson said.  

Broader Context: UK-Rwanda Relations

Strained Relations and Regional Issues

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 Position on the M23 Conflict

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.

($1=0.7428 pounds)

(Reporting by Stephanie van den Berg, additional reporting by Michael Holden and George Obulutsa; Editing by Sharon Singleton and Andrew Heavens)

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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