David Cameron has visited camps in Lebanon and Jordan to meet Syrian refugees who have fled their country's civil war.
The Prime Minister has called on other EU countries to "step up to the plate" and follow Britain's lead by funding refugee camps around Syria.
Mr Cameron said there was a "direct connection" between shortfalls in aid for camps in Lebanon, Jordan and Turkey and the influx of migrants into Europe.
The Chancellor has pledged that the UK will continue to fight the so-called Islamic State and break up criminal gangs of people-smugglers in order to deal with the ongoing refugee and migrant crisis in Europe.
Speaking to reporters, George Osborne also said the tragic death of three-year-old Syrian Kurdish refugee Aylan Kurdi was the fault of "criminal gangs" and the Islamic State militants his family were fleeing from.
There was no suggestion in Mr Osborne's comments that the government is considering a softening of its stance on accepting more Syrian refugees.
On a visit to Jordan, David Cameron says that the EU must "follow Britain's lead" and fund more refugee camps around Syria.
The prime minister has insisted the UK will not participate in plans to redistribute 160,000 refugees who have arrived in Europe.
Train traffic with Austria suspended as German authorities seek to reduce the number of asylum seekers arriving in the country.