The Guardian: UK Commission to Probe Charities Funding Illegal ‘Israeli’ Settlements

By Staff, Agencies 

The Charity Commission for England and Wales has launched an official investigation into charities accused of transferring funds to “Israeli” settlements in the occupied Palestinian territories, following a formal complaint submitted by Labour MP Melanie Ward.

The Guardian reported that the regulator said it will examine the extent of charitable funding directed toward settlements considered illegal under international law, determine whether the expenditures were consistent with the charities stated purposes, and assess whether regulatory action is required.

The inquiry initially targets eight unnamed charities, although the commission said it expects to expand the investigation to include additional organizations over time.

According to The Guardian, the investigation follows a series of reports highlighting financial transfers from UK-based charities to institutions operating in illegal “Israeli” settlements.

Last year, The Guardian reported that two UK charities transferred approximately £5.7 million to the “Bnei Akiva Yeshiva” high school in Susya, in the occupied West Bank.

In June, the newspaper also revealed details of a formal complaint filed by Labour MP Melanie Ward, saying that 32 charities in England and Wales had donated at least £28 million to “Israeli” settlements deemed illegal under international law. The Guardian reported that the Charity Commission's inquiry is a direct response to Ward's complaint.

Announcing the investigation, Stephen Roake, assistant director for high-risk compliance at the Charity Commission, said, "Serious allegations have been made about UK charities operating in illegal ‘Israeli’ settlements in Palestine, so our first step is to establish the facts. Only then can we determine if regulatory action is required, based on our findings and the evidence we see."

Roake added, "Our fact-finding will also help us develop regulatory guidance for charities, which will help ensure public trust and confidence in charities."

According to The Guardian, the issue has also drawn attention within the UK government.

In June, then Foreign Secretary Yvette Cooper told Parliament that she had asked the Charity Commission to investigate allegations that "charity systems are abused to funnel support to illegal settlements," adding that "some evidence suggests that rules are being broken." She also raised concerns over UK Gift Aid tax relief potentially being directed toward illegal settlements.

Ward, however, argued that an inquiry alone was insufficient, telling lawmakers that she and 140 Labour colleagues supported a ban on such funding. She criticized the Charity Commission for failing to act after The Guardian first reported the issue in July 2025.

The Charity Commission said the eight charities under initial review were selected based on concerns recently brought to its attention. Investigators will examine the location of partner organizations and the timing of the activities before deciding whether to identify the charities publicly when the inquiry concludes.

The regulator also confirmed it has shared information about the scope of its investigation with police and HM Revenue & Customs. According to The Guardian, the Metropolitan Police's war crimes unit said it is not currently investigating any charities over donations to illegal settlements.

Last month, The Guardian reported that a British charity had funded a religious school located at the center of expansion plans for an illegal "Israeli" settlement in the occupied Palestinian city of al-Khalil.

According to the newspaper, Friends of "Yeshivat Shavei" Hevron transferred nearly £200,000 to the school between 2019 and 2024.

Construction of a new dormitory for the school was approved in June after “Israeli” Finance Minister Bezalel Smotrich altered longstanding arrangements governing planning authority in al-Khalil, granting the “Israeli” occupation planning powers over the area.