Iran offers citizens £5 a month in desperate effort to quell violent protests against Islamic Republic

WATCH: Priti Patel slams Starmer's Iran response

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GB NEWS

George Bunn

By George Bunn


Published: 05/01/2026

- 12:01

Updated: 05/01/2026

- 14:21

Clashes have broken out between demonstrators and Iranian police across the country

The Iranian Government is offering its citizens 10 million rial (£5.50) a month in a desperate effort to curb widespread protests across the country.

Protests over soaring inflation spread nationwide, sparking violent clashes between demonstrators and security forces.


Deaths and arrests have been reported throughOUT THE last week by state media in Tehran and human rights groups.

Now, authorities have launched the "economic relief" plan on Sunday, which includes vouchers to nearly the entire population over the course of four months, roughly equivalent to the average daily salary of a worker.

Protests began a week ago among bazaar traders and shopkeepers before spreading to university students and then provincial cities, where some protesters have been chanting against Iran's clerical rulers.

Iran has faced inflation above 36 per cent since the start of its year in March and the rial currency has lost around half its value against the dollar, causing hardship for many people.

International sanctions over Iran's nuclear programme have been reimposed, with Tehran struggling to provide water and electricity across the country throughout the year, and global financial bodies predict a recession in 2026.

Supreme Leader Ayatollah Ali Khamenei said on Saturday that although authorities would talk to protesters, "rioters should be put in their place".

Protests broke out in Iran\u200b

Protests broke out in Iran over the last week

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GETTY

A chart showing parity between the Iranian rial and the US dollar

A chart showing parity between the Iranian rial and the US dollar

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GETTY

Kurdish rights group Hengaw reported at least 17 people had been killed since the start of the protests. HRANA, a network of rights activists, said at least 16 people had been killed and 582 arrested.

Iran's police chief Ahmad-Reza Radan told state media security forces had been targeting protest leaders for arrest over the previous two days, saying "a big number of leaders on the virtual space have been detained".

Police said 40 people had been arrested in Tehran alone over what they called "fake posts" on protests aimed at disturbing public opinion.

The most intense clashes have been reported in western parts of Iran, but there have also been scuffles between demonstrators and police in Tehran, in central areas, and in the southern Baluchistan province.

\u200bMasoud Pezeshkian

Masoud Pezeshkian said Tehran would take a 'kind and responsible' approach

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GETTY

President Masoud Pezeshkian told the Interior Ministry to take a "kind and responsible" approach toward protesters, according to remarks published by state media, saying "society cannot be convinced or calmed by forceful approaches".

That language is the most conciliatory yet adopted by Iranian authorities, who have this week acknowledged economic pain and promised dialogue even as security forces cracked down on public dissent in the streets.

Meanwhile, US President Donald Trump has threatened to come to the protesters' aid if they face violence, saying on Friday "we are locked and loaded and ready to go", without specifying what actions he was considering.

That warning prompted threats of retaliation against US forces in the region from senior Iranian officials], with Ayatollah Ali Khamenei saying Iran "will not yield to the enemy".

Ayatollah Khamenei

Ali Khamenei has remained largely absent from public view and has not appeared or spoken during the recent unrest

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REUTERS

Speaking on Sunday, Vice-President Mohammadreza Aref said the government acknowledged the country faced shortcomings while warning that some people were seeking to exploit the protests.

"We expect the youth not to fall into the trap of the enemies," Mr Aref said in comments carried by state media.

Shadow Foreign Secretary Dame Priti Patel has aimed Sir Keir Starmer for "sitting in silence" over the protests.

Appearing on The Camilla Tominey Show on GB News, Dame Priti issued a scathing warning to Prime Minister Sir Keir Starmer.

\u200bDame Priti Patel i

Dame Priti Patel issued a warning about Iran

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PA

She told The People's Channel: "They are dying for their freedom, and that might be a difficult concept for us to comprehend. They are fighting and dying for their freedom. Look at the tyrannical regime with the ayatollahs in Tehran.

"It is extraordinary with the level of protests that we've seen. We haven't seen protests of this nature, I think since 2022, when we saw the most appalling brutality against women in particular for not fully covering their hair.

"This is a really big moment, actually. It could be a crossroads. It could be a turning point.

"So how can we have a Prime Minister in a Labour Government that sits in silence and sits on their hands? At this particular moment, I just don't think that's acceptable."

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