A Palestinian woman looks out of her house, that was painted by a group of young men as part of a campaign dubbed "Colour of Hope", in Al-Shati Refugee Camp in Gaza City July 7, 2015. [Photo/Agencies]

Despite the Strip's "dire circumstances," the UN official said, UNRWA's efforts to assist families were unabated, with the first relief packages aimed at helping refugee families to rebuild their homes slated to arrive this week.

"While the numbers are small, and it comes very late, this development could be significant if sufficient quantities and the desperately needed funding can be obtained," said Krahenbuhl. "In an increasingly unstable Middle East, neglecting the needs and rights of the people of Gaza is a risk the world should not be taking."

UNRWA is funded almost entirely by voluntary contributions from UN member states. It also receives some funding from the Regular Budget of the United Nations, which is used mostly for international staffing costs.

The agency's services encompass education, health care, relief and social services, camp infrastructure and improvement, microfinance and emergency assistance, including in times of armed conflict.

Following the 1948 Arab-Israeli conflict, UNRWA was established by UN General Assembly on Dec 8, 1949 to carry out direct relief and works programs for Palestine refugees. The UN agency began operation on May 1, 1950.

In the absence of a solution to the Palestine refugee problem, the General Assembly has repeatedly renewed UNRWA's mandate, most recently extending it until June 30, 2017.