UK announces £88 million Palestinian aid package as Israel urged to end ‘unacceptable restrictions on Gaza’

Hundreds of thousands of Palestinians will receive healthcare, clean water and protection under a new £88 million aid package announced by the UK Government.

The package will fund medical consultations, essential mental health care and rehabilitation for children who have sustained blast injuries.

Further funding is dedicated to waste management alongside sanitation and hygiene services.

The package forms part of the £127 million allocated to Palestine in the UK’s Official Development Assistance (ODA) budget for 2026/27.

Calling on the Israeli government to lift its "unacceptable restrictions on Gaza", Foreign Secretary Ed Miliband explained the package would deliver "support to those desperately in need".

The move comes amid a reset in diplomatic ties with Benjamin Netanyahu’s administration, which previously saw the UK ban goods produced in illegal West Bank settlements.

Both Israel and the US denounced the UK’s policy, with Israeli foreign minister Gideon Saar announcing retaliatory steps including the closure of the UK consulate in Jerusalem and entry bans for 11 MPs.

Mr Miliband said: "It is vital that civilians in Gaza have unhindered access to aid.

"The UK is pledging a major new package of aid to provide much needed healthcare support to those desperately in need.

"We urge the government of Israel to listen to our call to action and take steps to end its unacceptable restrictions on Gaza."