“As the budget shrinks, every penny must count”: Bond response to ICAI review on management of UK aid budget
Today, Thursday 12th March, a new review by the Independent Commission for Aid Impact (ICAI) has found that the management of the UK’s aid budget has not always been based on clear priorities, or evidence of good value for money.
Despite the government introducing reforms to its management of the UK aid budget from 2025, ICAI highlights ongoing questions about how these changes will work in practice, particularly in light of a significantly reduced budget and unpredictable asylum system costs.
The report, which examines how the UK government managed its UK aid spending target and distributed funding between departments from 2021 to 2025, found that there was too much focus on achieving spending targets, rather than delivering on a strategic set of development objectives. The review also highlights that spending large amounts of UK aid on supporting refugees and asylum seekers in the UK poses a risk to value for money and transparency efforts, whilst diverting funds away from the government’s international development priorities.
Gideon Rabinowitz, Policy and Advocacy Director at Bond, the UK network for NGOs, said:
“Today’s review highlights our ongoing concern that a lack of clear strategy for UK aid spending has risked an ill-afforded decline in value for money, that could harm the UK’s ability to reduce global poverty and improve the lives of the world’s most marginalised communities. Amid a shrinking UK aid budget – following the steepest cut in the G7 – it is now more important than ever that funds meant for tackling global challenges are spent efficiently, and help the UK deliver on its international commitments.
We are disappointed by the report’s warning that, in the event of an underspend on asylum support, the Home Office are not obligated to restore these diverted funds back to the UK aid budget – meaning money intended for overseas spend may be pocketed by the Home Office, rather than spent on vital humanitarian and development support. While supporting refugees and asylum seekers in the UK is essential, these costs should be budgeted separately, instead of using scarce funds from the UK aid budget. Every penny must count towards reducing poverty and supporting marginalised communities worldwide – including women and girls, people in conflict zones, and people with disabilities.
With even deeper cuts to the UK’s aid budget still to take effect, and as the FCDO adapts to a reduced workforce, independent scrutiny to ensure value for money – such as is provided by ICAI – is vital.
We urge the UK government to enact the review’s recommendations, including laying out a comprehensive and evidence-based approach to UK aid spending. With less UK aid to spend, but ever greater need, the government must set out a clear strategy to ensure UK aid delivers for those who need it most.”
ENDS
Notes to Editors:
- For more information and a copy of ICAI’s review, contact Muna Mahfuzah on [email protected] or 07345998708.
- In 2024, £2.8 billion of spending on asylum support was funded by the UK aid budget (20% of total UK ODA). Bond has previously called for essential support for refugees and asylum seekers in the UK, including accommodation, to be funded by the Home Office’s own budget, rather than through the UK’s aid budget.
- The Independent Commission for Aid Impact works to improve the quality of UK development assistance through robust, independent scrutiny.
- Bond unites and supports a diverse network of over 330 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.
- For further information or interviews, please get in touch with Emily Loynes at [email protected] or 07909947850
