Source · Select Committees · International Development Committee
Recommendation 5
5
Accepted in Part
Require FCDO strategy documents to explicitly state poverty reduction as the core VfM principle.
Conclusion
It is essential that the FCDO makes it clear in all strategy frameworks and guidance documents that improving the lives of those in poverty is the core principle of the FCDO’s approach to VfM. All economy, efficiency, effectiveness and equity assessments must be explicitly considered against this principle. (Recommendation, Paragraph 24)
Government Response Summary
The government partially agrees, stating it will update its Value for Money (VfM) guidance in 2026 to more clearly communicate to staff and partners that improving the lives of those in poverty is a core principle, while affirming that current assessments already align with this objective.
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.