The Government has announced it will increase payments made to people who have opened their homes to Ukrainians fleeing ‘Putin’s appalling war’.

So-called thank you payments of £350 per month to hosts will be increased to £500 for guests who have been in the country for more than a year.

More than 100,000 Ukrainians have so far sought sanctuary in the UK through the Homes for Ukraine scheme.

The Government has also announced a one-off funding pot worth £150m for UK councils and a new £500m Local Authority Housing Fund covering England that can also be used to ‘support other people at risk of homelessness’ through buying housing stock, building homes or converting existing properties into accommodation.

A spokesperson for the Department for Levelling Up, Housing and Communities said the £500m fund was expected to provide up to 4,000 homes by 2024.

Minister for housing and homelessness, Felicity Buchan, said: ‘Our brilliant sponsors and our councils are at the very heart of this country’s response to Putin’s appalling war in Ukraine.

‘Hosting a Ukrainian family is a massive commitment and, from the amazing sponsors I’ve met, I also know that the rising cost of living is putting additional pressures on both household and local finances.

'That is why we are increasing thank you payments to keep this incredibly successful programme going.’

Chairman of the Local Government Association (LGA) Cllr James Jamieson said: 'With councils working through competing priorities and pressures within already overstretched resources, the need for ongoing funding to integrate arrivals into their new communities, build their independence and keep them safe is crucial. We are therefore pleased that this funding for new arrivals is to continue, though we have concerns that the amount is to be reduced.

'There is a real crisis in the refugee and asylum system which is compounded by a housing crisis. It is good the Government is starting to take action around a joined up approach to challenges across all programmes, including for asylum seekers. We look forward to continue working with them to identify and implement further solutions to accommodation challenges.

'Councils have been at the sharp end of the rise in the number of people presenting as homeless and need urgent solutions to pressing housing needs in the short and the long term across all the schemes that welcome new arrivals to the UK.'