UK Charities Funnel Millions to Illegal Israeli Settlements, Fuelling Palestinian Dispossession

Shocking revelations expose how two UK-registered charities have funneled millions of pounds to an Israeli settlement deep within the occupied West Bank, with alarming implications for the ongoing dispossession of the Palestinian people. Documents obtained by The Guardian reveal that the Kasner Charitable Trust (KCT), operating through a conduit charity, UK Toremet, has channeled approximately £5.7 million to the Bnei Akiva Yeshiva high school in Susya, an Israeli settlement built illegally on Palestinian land.

This substantial funding has directly contributed to the expansion of the illegal settlement. As the school's budget soared due to these donations, so too did the number of pupils, employees, and, crucially, the population of Susya residents. Dror Etkes, a renowned expert on Israeli settlements, emphatically states: "The school is likely the largest single source of employment in the settlement, and constitutes one of the main elements of the entire settlement’s existence." This highlights how ostensibly "educational" donations directly underpin and perpetuate the illegal occupation.

Susya, established by Israel around 1983 south of Hebron, purposefully impinges upon the pre-existing Palestinian village of Khirbet Susiya. In a grave violation of human rights, Amnesty International reported that Israeli authorities declared the main residential area of Khirbet Susiya an archaeological site in 1986, brutally evicting all its Palestinian residents – a clear act of ethnic cleansing disguised as preservation. The violent reality on the ground continues, as evidenced by a recent attack in March, when settlers assaulted the Susiya home of Hamdan Ballal, a director of the Oscar-winning documentary No Other Land. Such acts are part of a systematic campaign of terror and displacement against Palestinian communities, driven and enabled by the very presence of these illegal settlements.

Charity Commission's Complicity and Official Indifference

Even more disturbing is the Charity Commission's apparent endorsement of these transfers. In 2016, the Charity Commission wrote to UK Toremet, astonishingly stating: "A donation to a school in the occupied territories would be a donation for the advancement of education and therefore on the face of it a legitimate grant for UK Toremet to make." This position has faced scathing criticism from across the political spectrum.

Former Conservative Party Chair Sayeeda Warsi condemned the situation, stating, "It’s appalling that any British national should be engaged in funding illegal settlements on occupied land – and it’s even more disturbing that this is being subsidised by all of us taxpayers." She voiced certainty that "the vast majority of my colleagues in Westminster will share my outrage that the Charity Commission is greenlighting these donations," calling for "serious action" to prevent charities from benefiting illegal settlements, which are "at the heart of a regime of discrimination and displacement."

Labour MP and solicitor Andy McDonald echoed this outrage, demanding urgent governmental action to "ban the use of funds originating from the UK being used to support any aspect of the illegal occupation." He insisted that donations to illegal settlements "should invalidate charitable status and result in individual prosecutions," demanding new legislation if necessary.

Despite these vocal concerns and previous complaints about UK charitable donations to Israeli settlements, the £5.7 million in question was transferred after 2017, between 2017 and 2021. In 2015, the government confirmed the Charity Commission was reviewing UK Toremet's compliance, and in 2016, the commission stated it had an "open case" and issued an "action plan." Yet, the transfers continued. When law firm Hickman & Rose contacted the commission in 2022 about potential war crimes, the regulator incredibly replied that such allegations were not within its remit, advising them to contact the police.

Subsequently, the lawyers approached the counter-terrorism command, SO15, but SO15 responded in March this year (2025) that it would not be pursuing a criminal investigation, citing reasons the lawyers plan to contest. Worryingly, SO15 merely stated it would highlight the UK's position on illegal settlements to the Charity Commission "with our concerns"—a gesture that falls far short of accountability.

A Charity Commission spokesperson defensively stated, "The commission can only operate within our legal framework, and the fact that a charity operates in the occupied Palestinian territories does not in itself constitute a criminal offence or breach of charity law." This stance reveals a glaring loophole that allows British funds to support an internationally condemned occupation. They added they are "in the process of seeking renewed specialist advice from the attorney general" on these complex legal issues. UK Toremet maintains it is "not driven by any political or ideological agenda" and operates within English charity law, citing the commission's 2016 letter. A KCT spokesperson even questioned the illegality of the settlement, claiming their donation was for a "religious school, not for settlement purposes." Such arguments disregard the undeniable reality of international law and the devastating human cost of these settlements.

Mounting Pressure for Action Against Complicity

The issue of UK entities' complicity in Israel's illegal occupation extends beyond these two charities. The International Centre of Justice for Palestinians (ICJP) has recently filed formal complaints against other UK-registered charities, including JNF Charitable Trust in the UK (JNF UK) and Mizrachi (UK) Israel Support Trust, for funding programs directly linked to the Israeli military and promoting hate speech, often funnelling millions to these causes. The ICJP has repeatedly urged the Attorney General to revoke the charity status of groups like JNF UK, citing violations of UK charity laws and international humanitarian law. These calls for accountability are gaining momentum, particularly in light of the International Court of Justice's (ICJ) landmark advisory opinion in July 2024, which unequivocally ruled that Israel's continued presence in the occupied West Bank and East Jerusalem is unlawful under international law.

This ICJ ruling places a direct obligation on third-party states, including the UK, not to recognise or render aid or assistance that helps sustain the occupation. Despite this, the UK government has yet to issue a formal response outlining how it intends to meet these international obligations. Over 120 Members of Parliament, peers, and bishops have recently written to Prime Minister Keir Starmer, urging his government to publish its long-promised response to the ICJ ruling and to take "all the necessary measures" to comply, including suspending arms sales and banning trade and investment with settlements.

As settler violence escalates across the West Bank, displacing over a thousand Palestinians between January 2024 and May 2025 alone, civil society organizations are growing "exasperated" by the UK government's failure to act decisively. While targeted sanctions against some individuals and illegal settler outposts have been implemented by the UK, critics argue these are insufficient to address the systemic nature of settlement expansion, which is a matter of state policy.

The continued flow of British charitable funds to illegal Israeli settlements not only undermines the UK's stated commitment to international law but directly contributes to the ongoing oppression, displacement, and human suffering of Palestinians. There is an urgent and undeniable need for robust governmental and regulatory action to ensure that no British funds inadvertently or deliberately fuel violations of human rights and international law. The world is watching, and the moral imperative demands accountability and justice for the Palestinian people.