Source · Select Committees · International Development Committee
Recommendation 4
4
Accepted in Part
FCDO's Value for Money definition prioritises taxpayer value over global poverty reduction.
Conclusion
The Committee is disappointed to note that per the FCDO’s current published definition of VfM in its Programme Operating Framework, the department frames VfM in the context of value to the taxpayer, not improving the lives of those in poverty. Whilst accountability to the taxpayer should be a key facet of any VfM approach for a Government department, reducing poverty globally, and maximising the impact of each pound to do so, must remain the FCDO’s central tenet for ODA spending. (Conclusion, Paragraph 23)
Government Response Summary
The government partially agrees, committing to update its Value for Money (VfM) guidance in 2026 to communicate more clearly the basis on which VfM is assessed. However, it clarifies that, in practice, its ODA expenditure assessments already focus on the impact on those living in poverty.
Government Response
Accepted in Part
HM Government
Accepted in Part
Partially agree. The FCDO will update its VfM guidance in 2026 to communicate more clearly to staff and partners the basis on which VfM is assessed and improved. However, in practice, assessments on ODA expenditure are already about the impact of each pound spent on those living in poverty. The FCDO already ensures that ODA expenditure meets OECD DAC rules and requirements in the International Development Act (2002) and uses the 5Es criteria (economy, efficiency, effectiveness, cost-effectiveness and equity) to breakdown and assess the different aspects of how to deliver this objective with value for money.