UK removes hardship bonus for diplomats in Buenos Aires

The UK's Foreign, Commonwealth and Development Office (FCDO) has announced the removal of the hardship payment for civil servants posted to Buenos Aires, Argentina, and the neighbouring city of Santiago, Chile.

Why the policy change? The compensation scheme, in place for 30 years, is meant to offset the extra costs and risks of overseas postings in cities considered dangerous, such as Beirut, Pretoria, New Delhi and Beijing. The review, completed last week, determined that Buenos Aires and Santiago no longer meet the defined criteria for high‑risk postings.

The cut affects an estimated 60 diplomats and families who would have received an extra £1,517 and £777, respectively, over the course of their deployment.

FCDO minister Lord Wood said: "These arrangements are not new, and indeed have applied consistently under successive governments for a number of decades." The decision comes as the UK seeks to tighten public spending while still maintaining support for staff in challenging locations.

Opposition reaction The Conservatives have slammed the move, with chairman Kevin Hollingrake describing the scheme as an unfair burden on taxpayers and promising to reduce the civil service size if the Alliance is returned to power. "Businesses and families are paying higher taxes to fund this government's policies, civil servants are being sent on taxpayer‑funded jollies to places like Bali, Cape Town and the Maldives," he said.

The FCDO countered that the allowance reflects the real hardships faced by diplomats, comparing it to private sector standards where compensation matches the work environment. It also highlighted that cities such as Bangkok, Cape Town, Kuala Lumpur, Dubai, Abu Dhabi and Muscat remain on the list for hardship payments.