'Thanksgiving payment' cancelled: Ukrainian refugees in Scotland could lose their roof over their heads

Ukrainians who took refuge in Scotland after the outbreak of full-scale war may find themselves homeless: the families who took them in are being deprived of monthly "gratitude payments" from the government, according to a Daily Mail article.

Since February 2022, when Russian forces invaded Ukraine, an estimated 28,000 people, mostly women and children, have moved to Scotland. At the time, the Conservative government launched the Homes for Ukraine scheme, which paid £500 a month in token compensation to households who agreed to house refugees for free. The amount was later reduced to £350.

Now the new Labour government has confirmed that it will stop these payments after 18 months. This has raised fears that some host families will refuse to continue to house Ukrainians for free, meaning many will be forced to find accommodation on their own or seek help from local authorities.

The Scottish Conservatives called the decision "cruel" and "short-sighted", warning that its consequences would put a heavy burden on an already overstretched social housing system.

One Scottish landlord told the Mail on Sunday in a commentary that he had received a letter from the council asking if he was going to evict his lodgers once the payments stopped. He said his family had no intention of doing so, but, as he pointed out, "not everyone will be so lucky", and the local authority clearly fears an influx of enquiries from Ukrainians left homeless.

There are several entry routes for Ukrainians. The Ukraine Family Scheme, launched in March 2022, allowed those with relatives with British citizenship or indefinite leave to remain to move to the UK for three years. The same month saw the launch of Homes for Ukraine, a sponsorship programme that gave Ukrainians three-year visas if they had a host and suitable accommodation.

The family scheme was closed in February 2024. The Homes for Ukraine programme formally continues to operate, but the duration of new visas has been reduced to 18 months. In parallel, the Ukraine Permission Extension (UPE) Scheme was introduced, which extends visas already issued to Ukrainians for a further 18 months. Many participants in these programmes fear what will happen when this period expires.

Despite diplomatic efforts and discussions of possible peace, Ukraine remains a high risk zone and returning to the country still looks risky for many.

The Convention of Scottish Local Authorities (COSLA) has said that municipalities across the country are expressing serious alarm at the cessation of 'thank you payments' following the end of the UPE scheme. A spokesperson said COSLA is gathering information from local refugee resettlement services to assess how the cancellation of the payments will affect the sustainability of family accommodation for Ukrainians and the extent to which the strain on social housing trusts and homelessness services will increase. These issues are scheduled to be discussed at a meeting of the Communities Wellbeing Select Committee in December.

Scottish Conservatives housing policy spokeswoman Megan Gallagher sharply criticised the Labour Party's decision, saying many Scots had enthusiastically opened their homes to people fleeing Putin's "brutal invasion" and could now be faced with the "impossible choice" of continuing to house guests at their own expense or asking them to move out. She said the funding cuts could lead to an increase in homelessness among Ukrainians and further strain the social housing system, which is already suffering "severe cuts" from the Scottish Government.

The Scottish Government said it was continuing to press London for "fair funding" for support programmes for Ukrainians and other resettlement schemes.

A spokesman for the Department for Housing, Communities and Local Government, for its part, emphasised that support for Ukraine remained "unwavering" and the country was still welcoming new arrivals. According to him, both refugees and sponsors were told in advance that payments would be limited to 18 months, which should have been enough time to make plans, find other accommodation and move on to more independent living.