The Department for International Development is allocating £7m to help the UN Relief and Works Agency keep open schools for 500,000 children and provide medical care for 3.5m refugees across the Middle East.

The move comes as UNRWA faces a shortage of funds, which Middle East minister Alistair Burt said could have a “devastating impact” on those who rely on its services.

Burt said in a statement on Tuesday: “Whilst [the] UK aid announcement will help to meet immediate needs, we are clear that the UK cannot act alone.

“For the sake of millions of Palestinians, the international community and other donors must follow our lead and step up support to UNRWA to ensure its vital services are not interrupted.”

The announcement brings the UK’s support of the UN agency to £45.5m.

Earlier this year, UK aid also announced that it would allocate funding to healthcare and education in the region, and in June it provided a further £10m to do so in Gaza.