David Lammy 'could restart UK funding for UN aid body in Gaza' despite Israeli claims it has been infiltrated by Hamas and staff took part in October 7 atrocities - after Foreign Secretary holds discussions on Israel visit

Britain is considering restarting its funding of the UN refugee agency despite Israeli claims that it has been infiltrated by Hamas and staff even took part in the October 7 terror attacks. 

The UK's ambassador to the global body signalled that under Foreign Secretary David Lammy the new Labour government may resume sending money to the United Nations Relief and Works Agency for Palestine in the Near East (UNRWA).

Funding for the organisation was halted by Rishi Sunak's former Tory government after Israel claimed that its operation in Gaza had been infiltrated by Hamas and Palestinian Islamic Jihad fighters who made up 12 per cent of its workforce, or around 1,400 people. 

The Netanyahu government also claimed staff even took part in the October 7 massacre. But an independent review carried out in April found that Israel had provided no evidence to back up its claims.

In a speech at the UNRWA Pledging Conference 2024 on Friday, UK ambassador Barbara Woodward said the UK had been 'appalled' by the accusations but that it was confidence action was being taken to ensure 'the highest standards of neutrality, transparency and accountability' were being met.

'The UK recognises the importance of UNRWA’s mandate and the need for UNRWA to operate on a sustainable financial footing. Following last week’s elections in the United Kingdom, the new Foreign Secretary is closely considering resuming UK funding to UNRWA.'

It came as Mr Lammy made his first visit to the Middle East as Foreign Secretary, meeting both Mr Netanyahu and Prime Minister of Palestine, Mohammad Mustafa.

He urged an 'immediate ceasefire' between Israel and Hamas and the release of hostages today, describing the death toll in Gaza as 'intolerable' and calling for 'unrestricted' access for aid.

Labour is walking a diplomatic tightrope - with many of the party's voters demanding a more pro-Palestinian stance. It lost five seats to pro-Palestinian candidates in areas with prominent Muslim populations in this month’s General Election. 

But restoring UNRWA funding may help placate hostile backbenchers. 

The October 7 attack by Hamas militants killed 1,200 people, while about 250 other people were abducted, according to Israeli tallies.

Several countries including the United States halted funding to UNRWA after Israel alleged that staff members were involved in Hamas' attack. 

The agency has said it took the allegations seriously and sacked 10 staff members accused by Israel of involvement in the attack.

But in April, Norway called on international donors to resume funding UNRWA, after a UN-authorized independent review found that Israel had not provided evidence supporting its accusations that hundreds of UNRWA staff were members of the terrorist groups. 

Established in 1949 after the first Arab-Israeli war, UNRWA provides schooling, healthcare and humanitarian aid in Gaza, the West Bank, Jordan, Syria and Lebanon. It is almost entirely by UN member states. 

Mr Lammy highlighted that there is more than 680 tonnes of UK aid in the region and waiting to enter Gaza, including medicines, shelters and hygiene kits.

He also met families with links to the UK whose loved ones were either murdered or captured by Hamas.

Ahead of the meetings he said: ‘The death and destruction in Gaza is intolerable.

‘This war must end now, with an immediate ceasefire, complied with by both sides.

‘The fighting has got to stop, the hostages still cruelly detained by Hamas terrorists need to be released immediately and aid must be allowed in to reach the people of Gaza without restrictions.

‘I am meeting with Israeli and Palestinian leaders to stress the UK’s ambition and commitment to play its full diplomatic role in securing a ceasefire deal and creating the space for a credible and irreversible pathway towards a two-state solution.

‘The world needs a safe and secure Israel alongside a viable and sovereign Palestinian state.

‘Central to this is to see an end to expanding illegal Israeli settlements and rising settler violence in the West Bank.

‘Here, in what should be a crucial part of a Palestinian state, alongside Gaza and East Jerusalem, we need to see a reformed and empowered Palestinian Authority.’

His remarks come after an Israeli strike said to be targeting the suspected October 7 attack mastermind Mohammed Deif killed at least 90 people and injured hundreds more.

The charity Action Aid UK said the attack on the al-Mawasi area near Khan Younis in the southern area of the Gaza strip happened in a designated ‘humanitarian zone’.

An eyewitness told the BBC that it looked like an ‘earthquake’ had hit while Hamas described the strike as a ‘horrifying massacre’ and denied Deif was killed.

It remained unclear last night whether he was among the dead.