The Telegraph reported that Britain has not yet established full diplomatic relations with the newly recognized State of Palestine, setting a condition that the Palestinian Authority (PA) must cease payments to families of terrorists. This demand follows Britain’s formal recognition of Palestine on September 21, 2025, alongside Canada and Australia, a move intended to support a two-state solution amid over 41,000 Palestinian deaths in Gaza since October 2023. The decision has sparked criticism for its perceived backward approach.

Foreign Secretary David Lammy outlined that diplomatic ties hinge on the PA halting its “martyr payments,” a policy long criticized by Israel and the U.S. as incentivizing terrorism, with estimates of $350 million annually. The condition comes after Hamas leader Ghazi Hamad celebrated the recognition as the “fruits of October 7,” referencing the 2023 attack that killed 1,200. Critics, including Israeli officials, argue that recognizing a state first and then imposing conditions is “stupid and backwards,” undermining leverage and rewarding Hamas’s governance.