Select Committee · International Development Committee

The FCDO's approach to value for money

Status: Closed Opened: 13 Nov 2024 Closed: 11 Feb 2026 10 recommendations 28 conclusions 1 report

In November 2020, the Government announced a reduction of Official Development Assistance (ODA) from 0.7 per cent to 0.5 per cent of Gross National Income (GNI), a “temporary measure” until a set of certain fiscal rules were met. In the 2024 Autumn Budget, the Government confirmed that the FCDO would be held to the previous …

Clear

Reports

1 report
Title HC No. Published Items Response
7th Report – Assessing Value, Ensuring Impact: The FCDO's A… HC 422 29 Oct 2025 38 Responded

Recommendations & Conclusions

8 items
11 Recommendation 7th Report – Assessing Value, Ensuring … Accepted

Publish annual impact assessments for ODA cuts, detailing rationale and alignment with aid objectives.

We recommend that the Government commits to publishing an impact assessment for every year in which cuts to ODA are implemented, including the 2026/27 financial year, and providing rationale for how these decisions align with the impact that UK aid aims to achieve. (Recommendation, Paragraph 39)

Government response. The government agrees and plans to publish the impact assessment for ODA cuts following the finalisation of ODA programme allocations.
18 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

FCDO lacks current review of its significant multilateral aid spending since 2016.

We recognise that multilateral organisations can offer good VfM in many circumstances. However, it is concerning that the FCDO has not commissioned a review of its multilateral aid spend since 2016, despite £2.8 billion of core ODA funding being spent through multilaterals in 2024. (Conclusion, Paragraph 58)

Government response. The government disagrees with the concern, stating that multilateral aid spending is regularly scrutinized through various internal processes (PrOF, Central Assurance Assessments) and external assessments (MOFAN), and is evaluated during Spending Reviews.
19 Recommendation 7th Report – Assessing Value, Ensuring … Accepted

Initiate new multilateral aid review by 2025/26 to assess ODA value for money and impact.

We recommend that the Government conducts a new multilateral aid review of its current ODA spending to ensure that VfM is being achieved by the end of the 2025/26 financial year. This should include: a. An evaluation of the most effective proportion of spending through multilateral vs bilateral programming; b. …

Government response. The government disagrees with conducting a new multilateral aid review, stating that FCDO funding to multilateral organizations is already regularly scrutinized through existing processes like PrOF, Central Assurance Assessments, and Spending Review evaluations.
25 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

Published data on FCDO's implementing partners remains incomplete and obscure.

The FCDO’s use of private contractors is not inherently poor value for money. However, the published organisation and activity data of all implementing partners, including private contractors, is often incomplete and obscure. This exposes every pound spent to a higher risk of under-delivering impact. (Conclusion, Paragraph 87)

Government response. The government agrees that implementing partner data is incomplete and commits to improving IATI publishing by encouraging compliance, reviewing its approach to increase publishing while reducing administrative burden, and working with IATI to streamline the process.
27 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

Improve transparency of FCDO data collected on contractors, ensuring clear IATI reporting.

The FCDO must make every effort to improve the transparency of the data it collects on its engagement with contractors and operating partners. The information that is required of organisations to report through IATI must be published in a way that is clear, user-friendly, and complete. (Recommendation, Paragraph 89)

Government response. The government agrees and is committed to ensuring data is published clearly and user-friendly. They will continue to evolve DevTracker based on user feedback and work with the IATI community to improve data accessibility on D-Portal.
31 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

FCDO acknowledges data limitations in operating contexts and provides flexibility for partners.

It is also positive that the FCDO recognises that the lack of data in many of the contexts it operates in means that some quantitative metrics are not possible or of good quality, and offers flexibility around this for operating partners. (Conclusion, Paragraph 101)

Government response. The FCDO partially agrees with the conclusion, stating it is committed to ensuring MEL requirements are proportionate and will reinforce this approach through forthcoming guidance updates and programme performance reviews.
37 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

FCDO Programme Managers feel undervalued due to capacity issues and high expectations.

It is concerning that Programme Managers do not feel valued within the FCDO, a problem compounded by capacity issues and higher expectations than made of counterparts elsewhere in Government. Despite the Minister’s assurances that the FCDO recognises the importance of management, we are sceptical that measures such as mandatory training …

Government response. The government agrees with the committee's concern regarding programme manager workload and feeling undervalued. They are addressing this through the FCDO2030 initiative, which includes aligning workforce plans, investing in professional development, expanding expertise access, and providing qualifications and new support …
38 Conclusion 7th Report – Assessing Value, Ensuring … Accepted

Commission rapid capacity assessment and recruit specialists to support overworked FCDO Programme Managers.

The FCDO must make every effort to ensure that its staff feel valued and appreciated within the organisation, particularly amidst budget insecurity. The Committee recommend that the FCDO commissions a rapid capacity assessment, and recruit or offer secondments to additional specialists to relieve overworked Programme Managers, rebalance workloads and bring …

Government response. The government agrees and is addressing staff value and workloads through FCDO2030 initiatives, including workforce planning, professional development, agile deployment models, and embedding advisors for program leadership. These actions aim to strengthen project delivery and provide surge support.

Oral evidence sessions

3 sessions
Date Witnesses
17 Jun 2025 Alex Hurrell · Verian Group UK Ltd, Anisa Berdellima · MSI Reproductive Choices, Dr Brendan Whitty · St Andrews University, Mark Henstridge · Oxford Policy Management, Sinead Magill · Palladium Group View ↗
25 Mar 2025 Rt Hon Andrew Mitchell · House of Commons, Sarah Annable-Gardner · Action Through Enterprise View ↗
11 Feb 2025 Abdoulaye Fabregas · OECD, Dianne Stewart · The Global Fund to Fight AIDS, Tuberculosis and Malaria, Jennifer Armitage · LAMP Development, Shamik Dhar · Deer Run Advisory, Stefan Dercon CMG · University of Oxford View ↗

Correspondence

3 letters
DateDirectionTitle
27 Mar 2025 Correspondence from the Minister of State for International Development, Latin …
14 Mar 2025 Correspondence from the Minister of State for International Development, Latin …
11 Mar 2025 Correspondence from the Minister for the Indo-Pacific relating to the decision …