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UN loss and damage fund grants Nepal $20 million as UK MPs press for lasting flood support

Nepal UK

Nepal UK

Sat, 24 October 2026
UN loss and damage fund grants Nepal $20 million as UK MPs press for lasting flood support

A climate fund created to help vulnerable countries has approved a $20 million (about Rs3 billion) grant to Nepal for relief and rebuilding after the Bhotekoshi–Trishuli floods. The decision, taken at a special board meeting on Thursday 22 October, comes eight days after British MPs urged ministers to do more to support Nepal's recovery.

The Fund for Responding to Loss and Damage will support relief, rehabilitation and reconstruction in affected communities. Finance Minister Swarnim Wagle and Agriculture, Forests and Environment Minister Gita Chaudhary wrote to the fund on 31 August, five days after the floods struck on 26 August, seeking urgent help.

Preliminary government estimates put the death toll at about 1,500, with more than 5,000 people missing. More than 60,000 people from about 15,000 households were directly affected. These figures are provisional and may change.

Money still has to be unlocked

The approval is not the end of the process. A ministry spokesperson and alternate fund member, Dr Maheshwar Dhakal, said the fund's secretariat must first send formal notification and guidance, after which Nepal will submit a detailed proposal through an appropriate institution. Money could be channelled through the Government of Nepal, a national implementing entity or an internationally accredited institution. No deadline has been published. Further decisions could follow at the fund's December board meeting in the Philippines, and the fund's 11th meeting is scheduled for 17–19 March 2027 in Nepal.

The scale of the gap

The grant is small against the losses. Nepali reporting cites preliminary economic damage of about $2.7 billion and a reconstruction need of around $4.7 billion. On those figures, $20 million covers less than 1 per cent of the damage. The fund itself is stretched: during a Westminster Hall debate on 14 October, Liberal Democrat MP Monica Harding said 119 countries had requested $2.8 billion from it, while donors had contributed about $400 million. That is her figure, made in debate, and we have not been able to check it against the fund's own records.

What the UK has said

The 14 October debate was led by Reading Central MP Matt Rodda. Gareth Thomas, MP for Harrow West, said Nepal may need around £5 billion for reconstruction and resilience. Basingstoke MP Luke Murphy urged the government to keep its commitment once media attention fades, citing at least 1,455 deaths and more than 5,000 missing. Conservative MP David Reed spoke of the longstanding friendship between the two countries and the contribution of Gurkhas, saying: "We must stand with the Nepali people through this tragedy."

For the government, Foreign Office minister Chris Elmore said the UK has provided £5 million in emergency aid for shelter, clean water, sanitation and healthcare. He said the Foreign Secretary would share a platform with Nepal's finance minister on disaster information systems and access to financing in crises. No new funding was announced. Ms Harding called the £5 million insufficient.