UK Charity Investigation Into Israeli Settlement Donations Begins

Published: 5 August 2026. The English Chronicle Desk. The English Chronicle Online

The Charity Commission has launched an official investigation into charities in England and Wales over allegations that funds have been donated to Israeli settlements in the occupied Palestinian territories that are considered illegal under international law.

The regulator said the investigation will examine the scale of charitable funding reaching settlements, whether those payments are consistent with the charities’ stated purposes, and whether any regulatory action is required.

The inquiry follows a series of reports highlighting concerns over donations made by UK-registered charities to organisations operating in Israeli settlements in the West Bank.

The Charity Commission said its initial investigation will focus on eight unnamed charities, with the possibility of expanding the inquiry as more information becomes available.

Stephen Roake, assistant director of high-risk compliance at the Charity Commission, said the regulator’s first priority was establishing the facts before deciding whether further action was necessary.

“Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts,” he said.

He added that the findings would also help the commission develop guidance for charities and strengthen public confidence in the sector.

The investigation comes after concerns raised by Labour MP Melanie Ward, who submitted a formal complaint to the regulator alleging that dozens of UK charities had transferred millions of pounds to organisations connected to Israeli settlements.

Ward claimed that at least 32 charities in England and Wales had donated a combined total of around £28m to settlements that are regarded as illegal under international law.

The Guardian previously reported that two UK charities had transferred approximately £5.7m to the Bnei Akiva Yeshiva high school in Susya, located in the Israeli-occupied West Bank.

The reports triggered political pressure for greater scrutiny of charitable funding arrangements and questions over whether UK taxpayers’ money could indirectly support activities linked to settlements.

The issue gained further attention in parliament when former foreign secretary Yvette Cooper said she had asked the Charity Commission to examine the matter.

Cooper told MPs that charity systems should not be used to channel support towards illegal settlements and expressed concerns that UK tax relief mechanisms, including Gift Aid, could potentially be involved.

“Some evidence suggests that rules are being broken,” Cooper said, while calling for greater oversight.

Ward welcomed the decision to investigate but argued that stronger measures were needed.

She said that she and more than 140 Labour MPs wanted a ban on donations supporting settlements rather than only an inquiry.

Ward criticised the pace of the regulator’s response, arguing that concerns had been raised previously but that action had not followed quickly enough.

The Charity Commission said the eight charities selected for the initial investigation were among those linked to concerns recently brought to its attention.

The regulator said it would examine factors including the location of partner organisations and how recently the alleged activities took place.

It added that it may identify the charities publicly once its investigation reaches the stage where findings are released.

The commission also confirmed that information about the investigation had been shared with other authorities, including police and HM Revenue and Customs.

However, the Metropolitan Police’s war crimes unit has said it is not currently investigating any charities specifically over donations connected to Israeli settlements.

The controversy comes amid wider international debate over Israeli settlements in the West Bank.

The United Nations and many governments consider the settlements illegal under international law, while Israel disputes that position and argues that the status of the territories should be resolved through negotiations.

The issue remains one of the most sensitive aspects of the Israeli-Palestinian conflict, with settlement expansion frequently criticised by Palestinian officials and international organisations.

Supporters of the investigation argue that UK charities must ensure their activities comply with charity law and that public donations should not contribute to activities outside their approved purposes.

Abtisam Mohamed, a Labour MP and member of the foreign affairs committee, said the investigation was welcome but argued that the regulator needed to examine all organisations allegedly involved.

“While we welcome news of the investigation, we know there is evidence of at least 32 charities engaging in this practice,” she said.

She called on the Charity Commission to investigate further and take action to prevent what she described as misuse of charitable activity.

The MP argued that funding linked to illegal settlements was connected to wider issues of displacement and violence affecting Palestinians.

The Charity Commission, however, has emphasised that the investigation is currently focused on establishing evidence rather than reaching conclusions.

The regulator’s role is to ensure charities operate legally, follow their registered purposes and maintain public trust.

The investigation also raises broader questions about how international political issues intersect with charity regulation in the UK.

Charities operating internationally often work through partner organisations, religious institutions and educational projects abroad. Regulators must assess whether such partnerships remain consistent with UK charity law and whether funds are being used appropriately.

The inquiry is expected to examine financial records, relationships between UK charities and overseas organisations, and the purposes for which donations were made.

One case highlighted recently involved Friends of Yeshivat Shavei Hevron, a British charity that provided funding to a religious school in Hebron.

The charity reportedly sent nearly £200,000 to the school between 2019 and 2024.

The school has been linked to expansion plans connected with an Israeli settlement in the Palestinian city of Hebron, an area that has long been at the centre of tensions.

Concerns increased after approval was given for construction of a new dormitory at the school following changes to planning arrangements affecting the city.

The Charity Commission investigation is likely to attract significant attention from political groups, campaign organisations and communities affected by the Israeli-Palestinian conflict.

For charities involved, the inquiry could determine whether their funding arrangements comply with UK regulations and whether changes are required.

For campaigners, the investigation represents an opportunity to establish clearer rules around international donations and prevent UK charitable structures from being used in ways they believe conflict with humanitarian principles.

The regulator has not yet announced when its findings will be published, but it has indicated that the investigation could expand as further evidence is reviewed.

As scrutiny increases, the case is expected to become a significant test of how the UK’s charity system handles politically sensitive overseas activities while maintaining legal standards and public confidence.

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