He announced the decision in the Commons, telling MPs that “no other agency can deliver aid at the scale needed” to tackle the humanitarian catastrophe.
“It’s already feeding over half of Gaza’s population,” he said. “It will be vital for future reconstruction and it provides critical services to Palestinian refugees in the region.
“I was appalled by the allegations that UNRWA staff were involved in the Oct 7 attacks, but the UN took these allegations seriously.
“We are reassured that UNRWA is ensuring they meet the highest standards of neutrality and strengthening their procedures on vetting.”
Mr Lammy said Western allies like Japan, Norway and the EU had all restored funding to the UN refugee agency which he thanked for its “life-saving work”.
He added: “This Government will act too. I can confirm that we are overturning the suspension of UNRWA funding.”
The Foreign Secretary said the UK would provide £21 million of new cash to the agency, some of which would be used to fund internal reforms.
‘Links to Hamas’
Israel has said dozens of workers from the agency took part in the Oct 7 attacks by distributing ammunition, abducting hostages and coordinating transportation.
Mr Sunak suspended taxpayer funding to the agency immediately after the allegations emerged in January, while the UN ordered an independent inquiry.
Catherine Colonna, a former French foreign minister, headed the inquiry and made 50 recommendations including the setting up of a “neutrality investigations unit”.
But her initial report also found that Israel was “yet to provide supporting evidence” for its claims that UNRWA staff had taken part in the Oct 7 attacks.
Mr Lammy’s announcement was welcomed by charities, who said the restoration of funds was “long overdue” and “couldn’t come soon enough”.
Save the Children said: “UNRWA plays a vital role in providing food aid, shelter and medical care to children in Gaza. Without funding more innocent lives would be lost.”
Human Rights Watch added: “The decision to reinstate funding to UNRWA will save lives and should be applauded.
“It hopefully heralds a more robust and mature approach to British foreign policy.”
Concerns remain
But some senior Tories raised concerns about the decision and questioned whether it had been made too swiftly given the concerns about UNRWA.
Richard Holden, a former Conservative chairman, said he was “concerned by the Government’s decision to resume funding to the UNRWA”.
“UNRWA schools have been repeatedly used by terrorists to both store weapons and launch attacks and over 100 UNRWA staff have had links to terrorist groups in the region,” he said.
He urged Mr Lammy to “give UK taxpayers the reassurance that they need, an unequivocal assurance, that Hamas has no links to UNRWA in Gaza”.
The Taxpayers’ Alliance also questioned the decision, saying the agency had “attracted enormous controversy over its role in perpetuating the conflict” in Gaza.
The group said: “If ministers want to keep pumping vast amounts of cash into the global quangocracy they need to demonstrate value for money for UK taxpayers.”
Pressure on Israel
Mr Lammy also used his appearance in the Commons to urge the Israeli Defence Forces to pull its troops out of Gaza.
Israeli soldiers have been operating in the strip since the attacks in an effort to neutralise the Hamas terror group.
But the ground invasion has caused huge casualties, with Western countries putting increasing pressure on Israel over civilian deaths.
Mr Lammy, who has ordered Government lawyers to assess Israel’s compliance with humanitarian law, said Palestinians were “trapped in hell on earth”.
He added: “I have to be frank - Britain wants an immediate ceasefire. The fighting must stop, the hostages must be released, much much more aid must enter Gaza.”
But the Foreign Secretary also rebuffed calls from Left-wing MPs for Britain to impose a complete ban on arms exports to Israel.
“Israel is a country surrounded by people who would see its annihilation,” he said. “It would not be right to have a blanket ban.”
