The Charity Commission for England and Wales has launched an official investigation into charities suspected of channeling funds to illegal Israeli settlements in the occupied Palestinian territories. The inquiry aims to determine the extent of charitable donations supporting these settlements, whether such spending aligns with the charities' stated purposes, and what regulatory measures, if any, should follow.

The regulator’s action comes amid mounting allegations, following reports that have highlighted the financial links between UK charities and settlements deemed illegal under international law. Last year, two charities were reported to have transferred roughly £5.7 million to the Bnei Akiva Yeshiva high school located in Susya, an Israeli settlement in the occupied West Bank. More recently, a formal complaint lodged by Labour MP Melanie Ward asserted that at least 32 charities operating in England and Wales had donated a combined sum of no less than £28 million to such settlements. The Charity Commission has indicated that its inquiry is a direct response to this complaint.

Stephen Roake, assistant director of compliance at the Charity Commission, said the body’s initial focus would be on eight unnamed charities flagged in the complaint. He emphasized the commission’s intent to establish clear facts before deciding on regulatory steps and noted that the findings would also inform future guidance to uphold public trust in charitable organizations.

Concerns over misuse of charitable funds have drawn attention from political figures as well. In June, then Foreign Secretary Yvette Cooper told Parliament that there was evidence suggesting abuse of charity systems to support illegal settlements, raising alarms about UK gift aid being funnelled to these areas. Cooper confirmed she had requested the regulator to investigate the issue. Meanwhile, Ward and over 140 Labour MPs urged for a formal ban on such funding rather than merely an inquiry, criticizing the Charity Commission for previously appearing inactive despite awareness of the allegations since mid-2022.

The commission has acknowledged it will review details such as the geographical locations of partners involved and how recent the reported activities are. While the names of the eight charities under scrutiny have not yet been disclosed, the regulator has stated it may publish them upon concluding its investigation, which is expected to expand to include additional organizations.

Information about the scope of the investigation has been shared with law enforcement and tax authorities, although the Metropolitan Police’s war crimes unit has confirmed it is not currently pursuing any criminal investigations related to these claims.

Among recent revelations involving UK charity funding is the case of Friends of Yeshivat Shavei Hevron, which provided nearly £200,000 between 2019 and 2024 to a religious school at the center of settlement expansion plans in Hebron. The approval in June for a new dormitory at the school marked a significant violation of a longstanding international agreement overseeing the city.

Labour MP Abtisam Mohamed, a member of the foreign affairs committee, welcomed the Charity Commission’s investigation but stressed the need for a broader and more rapid response. She characterized funding of illegal settlements as extremist activity linked to violence and displacement, asserting it is fundamentally incompatible with the principles of charitable work.