The FCDO's approach to value for money

International Development Committee Closed Inquiry
Opened: 13 Nov 2024 Closed: 11 Feb 2026 Parliament page
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 … Read more
10 Recommendations
28 Conclusions
1 Report
3 Oral sessions
3 Letters
3 Events
Activity timeline 11 events
11 Feb
2026
Report published
29 Oct
2025
Report published
17 Jun
2025
Oral evidence
17 Jun
2025
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
27 Mar
2025
Correspondence
25 Mar
2025
Oral evidence
25 Mar
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
14 Mar
2025
Correspondence
11 Mar
2025
Correspondence
11 Feb
2025
Oral evidence
11 Feb
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
Oral evidence sessions 3 sessions
17 Jun 2025
View on parliament.uk
FCDO's Approach to Value for Money
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
25 Mar 2025
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The FCDO's approach to value for money
Rt Hon Andrew Mitchell · House of Commons Sarah Annable-Gardner · Action Through Enterprise
11 Feb 2025
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The FCDO's approach to value for money
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
Title HC No. Published Items Response
7th Report – Assessing Value, Ensuring Impact: The FCDO's Approa… HC 422 29 Oct 2025 38 Responded
Recommendations & Conclusions
38 results
1 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Limited public information and guidance on FCDO's value for money approach concerning equity.
DFID was a global leader in its approach to value for money (VfM), and the Committee are pleased to hear that some of the core foundations of DFID’s framework have transferred into the FCDO. However, it is concerning that there … Read more
Government Response
The government disagrees with the concern, stating that its Programme Operating Framework (PrOF) and internal PrOF Guides already provide rules and guidance on Value for Money (VfM). It plans to update existing guidance, share good examples, and roll out VfM training for staff instead of creating a new strategy.
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2 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Publish a clear strategy and framework for FCDO’s approach to Value for Money.
The FCDO must publish a clear strategy and framework regarding its approach to VfM, as had previously been done by DFID and other Government departments. This should include: a. A clear definition of VfM; b. The FCDO’s core VfM principles; … Read more
Government Response
The government rejects the recommendation to publish a new, clear Value for Money (VfM) strategy and framework. It asserts that existing documents like the Programme Operating Framework (PrOF) and PrOF Guides already cover these aspects, and it will focus on updating this existing guidance.
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3 Recommendation Accepted in Part
7th Report – Assessing Value, Ensu…
Publish detailed guidance for FCDO staff and partners on conducting VfM assessments, prioritising equity.
Alongside a clear VfM strategy and framework, the FCDO should publish detailed and practical guidance for its staff and partners on how to approach and conduct VfM assessments, particularly in respect to equity, ensuring that programme activities address the needs … Read more
Government Response
The government partially agrees, committing to update its internal PrOF Guide on Value for Money (VfM) for staff in 2026 and publish a version for external partners. It will also produce a specific internal 'Equity and VfM' guide for staff.
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4 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
FCDO's Value for Money definition prioritises taxpayer value over global poverty reduction.
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. … Read more
Government Response
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.
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5 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
Require FCDO strategy documents to explicitly state poverty reduction as the core VfM principle.
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 … Read more
Government Response
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.
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6 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
FCDO has not yet formalised sustainability within its Value for Money criteria.
Sustainability is essential for ensuring that programmes have a long- lasting impact after a programme has ended. Despite broad recognition of the importance of sustainability, the FCDO is yet to formalise this within its VfM criteria. This should not just … Read more
Government Response
The government partially agrees, stating sustainability is already integrated into its VfM approach but will develop refreshed VfM guidance in 2026 with a stronger focus on assessing sustainability at each stage.
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7 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
Establish sustainability as a central tenet of FCDO's VfM assessment criteria by 2025/26.
The Committee recommend that sustainability should be a named central tenet of the FCDO’s VfM assessment criteria by the end of the 2025/26 financial year, and should be regularly and formally considered throughout the life of a programme. (Recommendation, Paragraph … Read more
Government Response
The government partially agrees, stating sustainability is already integrated into its VfM approach and that refreshed VfM guidance will be developed in 2026 to strengthen its assessment, but does not commit to making it a named central tenet by the specified deadline.
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8 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Reducing ODA to 0.3% will have devastating consequences, undermining UK soft power and security.
The UK’s planned reduction of ODA spend from 0.5% to 0.3% of gross national income will have devastating consequences across the world. The Committee recognises that increased defence spending is needed and is to be welcomed. However, to do this … Read more
Government Response
The government disagrees with the conclusion, reiterating its commitment to returning to 0.7% ODA when fiscal circumstances allow, based on OBR forecasts, and notes these conditions are not met within this Parliament.
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9 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Repeated UK aid budget cuts damage reputation and hinder long-term Value for Money.
Guaranteed, long-term funding for programmes is essential for ensuring that VfM is achieved, and that the impact of FCDO work continues to be felt long after the end of a programme. In the last five years, the UK has significantly … Read more
Government Response
The government disagrees with the conclusion, reiterating its commitment to returning to 0.7% ODA when fiscal circumstances allow, based on OBR forecasts, and notes these conditions are not met within this Parliament.
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10 Recommendation Rejected
7th Report – Assessing Value, Ensu…
Require Government to return ODA spending to 0.5% GNI with a clear rebuilding schedule.
The Government must make every effort to return to spending 0.5% of GNI on ODA at a minimum, as soon as possible. The Government should produce a clear schedule for rebuilding aid from the interim level of 0.3%, with defined … Read more
Government Response
The government explicitly rejects the recommendation to return to 0.5% ODA, stating its commitment is to 0.7% when fiscal circumstances allow, and notes these conditions are not expected to be met within this Parliament.
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11 Recommendation Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
Government Response
The government agrees and plans to publish the impact assessment for ODA cuts following the finalisation of ODA programme allocations.
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12 Conclusion Rejected
7th Report – Assessing Value, Ensu…
High in-country refugee costs are disproportionately classified as ODA, diverting funds from global poor.
The Committee notes the continuing badging of high levels of Government spending on refugee costs within the UK as ODA with dismay. Whilst the Spending Review commits to ending the use of asylum hotels in this Parliament, the level of … Read more
Government Response
The government disagrees, stating the FCDO's ODA budget is no longer automatically exposed to in-donor refugee costs and that measures are being taken to reduce asylum costs to ensure more ODA can be spent on overseas development.
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13 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Excessive in-donor refugee spend, especially hotel costs, contravenes ODA's development spirit.
Whilst the Committee recognises that in-donor refugee spend is allowable under DAC rules, in a world of rapidly decreasing aid budgets it is not in the spirit of what ODA should be used for, which per the OECD is spending … Read more
Government Response
The government disagrees, stating that the FCDO's ODA budget is no longer automatically exposed to in-donor refugee costs and measures are being taken to reduce these costs, thereby allowing more ODA for overseas development.
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14 Recommendation Rejected
7th Report – Assessing Value, Ensu…
Cap Home Office in-donor refugee costs at a fixed percentage of total ODA.
The Government should consider that Home Office in-donor refugee costs should be capped at a fixed percentage of total ODA spend to protect a rapidly diminishing envelope of funding. This should include formal review points if projections breach 80% of … Read more
Government Response
The government explicitly rejects the recommendation for a cap on Home Office in-donor refugee costs, stating the FCDO's ODA budget is no longer automatically exposed and measures are in place to reduce asylum costs.
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15 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Require HM Treasury to reallocate all future unspent ODA back to the FCDO.
The FCDO must make formal representation to HM Treasury that any unspent ODA allocated to other Government departments is channelled back through the FCDO to continue its vital humanitarian and development work, and to ensure that overall ODA spending does … Read more
Government Response
The government rejects the recommendation, explaining that ODA Department Expenditure Limit totals will no longer be adjusted for GNI fluctuations, meaning the FCDO's budget is no longer automatically exposed to other department's spending, thus providing greater predictability.
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16 Conclusion Rejected
7th Report – Assessing Value, Ensu…
FCDO's leadership position offers opportunity for consistent ODA value for money framework.
VfM approaches differ between Government departments, including in relation to ODA spend. The Minister’s announcement that the FCDO have been granted a greater leadership position in the way that ODA is spent across Whitehall is an opportunity for the FCDO … Read more
Government Response
The government disagrees with the premise that the FCDO should exert leadership over other departments' ODA spend, stating that individual departmental Secretaries of State remain accountable, and the Minister for Development already provides cross-government oversight.
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17 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Mandate FCDO's value for money framework for all ODA spending with formal FCDO oversight.
Achieving VfM for every pound of ODA is now more vital than ever, and it is essential that one consistent framework is applied across all aid spending. Given that the FCDO is the largest administrator of ODA, its published framework, … Read more
Government Response
The government disagrees with applying one consistent VfM framework across all aid spending and formal oversight by the FCDO's Second Permanent Under-Secretary, stating that departmental Secretaries of State are individually accountable for their department's spending.
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18 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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19 Recommendation Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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20 Conclusion Acknowledged
7th Report – Assessing Value, Ensu…
Financial pressures risk undermining locally-led solutions and associated value for money benefits.
The Government has ambitious and earnest intentions for championing locally-led solutions. However, there is a significant risk that these ambitions could be lost amidst financial pressures, in favour of centrally managed programmes, and that the VfM benefits that localisation can … Read more
Government Response
The government agrees with the observation, affirming its commitment to country-led, locally-led development partnerships and the Grand Bargain, recognizing their importance for value for money and effectiveness.
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21 Recommendation Acknowledged
7th Report – Assessing Value, Ensu…
Prioritise localised interventions for specific challenges to maximise ODA value for money.
The Government must prioritise localised interventions for context-specific challenges, including poverty reduction and community health. Given a reduced ODA budget, these interventions should be targeted towards areas with the highest level of impact to maximise VfM and fulfil the globally … Read more
Government Response
The government agrees to prioritize localized interventions, stating that country-led, context-specific partnerships are central to its bilateral offer and that it remains committed to the Grand Bargain and advancing locally-led development.
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22 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
Ensure coherence for locally-led programmes by developing a cross-departmental local leadership strategy.
The Minister for International Development must ensure that there is coherence across the department in respect of promoting locally-led programmes and ensuring they deliver good VfM. This should include prioritising the development of a local leadership strategy as a cross- … Read more
Government Response
The government partially agrees, stating it has added ‘locally led’ as a principle in the refreshed PrOF and will provide detailed guidance, indicating local leadership as an organizing principle but not explicitly committing to a new cross-departmental strategy.
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23 Recommendation Accepted in Part
7th Report – Assessing Value, Ensu…
FCDO is not fully leveraging philanthropic power, requiring improved engagement.
Philanthropic organisations have considerable power that the FCDO is currently not wielding to its maximum impact. Whilst the Government must be aware of the risks and implement mitigations where possible, there are compelling reasons for the Department to improve engagement … Read more
Government Response
The government partially agrees on the importance of philanthropic partnerships, stating it is committed to deepening these, has convened strategic roundtables, and is proactively assessing ways to systematically partner, including through strategic dialogues.
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24 Recommendation Accepted in Part
7th Report – Assessing Value, Ensu…
Convene regular strategic dialogues with philanthropists and development foundations for aligned work.
We recommend that the FCDO convenes regular strategic dialogues with philanthropists and development foundations to ensure that work can be aligned and complementary, and to encourage knowledge sharing. (Recommendation, Paragraph 75)
Government Response
The government partially agrees, noting it already convenes strategic roundtables with philanthropists and is proactively assessing ways to systematically partner, including by convening strategic dialogues to align work and share knowledge.
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25 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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26 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
Require all FCDO contracts with private contractors to adhere to IATI standards.
It is essential that the FCDO requires all of its contracts with private contractors to adhere to the International Aid Transparency Initiative, not just most, to ensure that all implementers of UK ODA are held to the same transparency and … Read more
Government Response
The government agrees more can be done to improve IATI publishing and is reviewing its approach to partner publishing, aiming to increase the proportion of partners that publish data while streamlining the process. However, they acknowledge challenges with sensitive data and financial burden for implementers, not fully committing to requiring *all* contracts to adhere.
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27 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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28 Conclusion Rejected
7th Report – Assessing Value, Ensu…
FCDO faces potential loss of in-house expertise due to long-term private contractor engagement.
We are concerned about the potential loss of expertise within the FCDO as a result of engagement with private contractors, particularly where contracts have been ongoing for many years, where in-house expertise could have instead been used. (Conclusion, Paragraph 90) Read more
Government Response
The government disagrees with the committee's concern, stating that existing robust governance, performance reviews, and contract management processes already provide sufficient oversight and accountability, thereby preventing loss of expertise.
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29 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Perform audit of FCDO private contractor engagements exceeding 12 months, assessing performance alignment.
The FCDO should perform an audit of all individual private contractor engagement longer than 12 months or approaching renewal. This must assess whether extended tenures align with performance outcomes and original mandates, with findings with clear recommendations for terminations or … Read more
Government Response
The government rejects the recommendation for an audit, stating that existing robust governance, performance reviews, and contract management processes already provide sufficient oversight and accountability, making additional audits unnecessary.
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30 Conclusion Acknowledged
7th Report – Assessing Value, Ensu…
FCDO demonstrates a strong monitoring, evaluation, and learning culture and processes.
We have been glad to hear that there is a stronger evaluation culture in the FCDO than can be seen in many other Government departments, and that the FCDO’s monitoring, evaluation and learning (MEL) processes are strong in comparison to … Read more
Government Response
The government acknowledges the committee's positive assessment, agreeing that the FCDO is a world leader in Value for Money (VfM) and has maintained the strong legacy of monitoring, evaluation, and learning processes from DFID.
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31 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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32 Conclusion Accepted in Part
7th Report – Assessing Value, Ensu…
FCDO's strong MEL processes increase administrative demands, potentially deterring smaller NGOs.
Whilst the FCDO’s strong MEL processes help to ensure that programmes are delivering VfM, these expectations increase administrative demands on organisations delivering these programmes. This may lead to smaller NGOs not applying for programme funding. (Conclusion, Paragraph 102) Read more
Government Response
The government partially agrees, acknowledging the need to ensure MEL requirements do not create barriers for smaller organisations. They commit to forthcoming updates to MEL guidance and programme performance reviews to reinforce a proportionate approach, and will work to eliminate obstacles for local actors.
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33 Recommendation Accepted in Part
7th Report – Assessing Value, Ensu…
Establish FCDO business hubs in partner countries to support smaller organisations with MEL requirements.
Wherever possible, the UK should support smaller organisations in MEL processes without placing unrealistic expectations on the level of data and reporting they are able to provide. Whilst we recognise and agree that MEL is vital for ensuring VfM, this … Read more
Government Response
The government partially agrees, committing to ensuring MEL requirements do not create barriers for smaller organisations through proportionate application and forthcoming guidance updates. However, they do not accept the recommendation to establish business hubs, deeming a one-size-fits-all approach inappropriate.
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34 Recommendation Accepted in Part
7th Report – Assessing Value, Ensu…
Standardise MEL reporting requirements for ODA programming across government departments under FCDO oversight.
To enhance the effectiveness and accountability of UK ODA spending, we recommend that MEL reporting requirements of ODA programming should be standardised across all Government departments. In line with our recommendation in Chapter 2, the Second Permanent Under-Secretary at the … Read more
Government Response
The government partially agrees, noting existing cross-government guidance supports consistent MEL standards and that a refreshed ODA Delivery and Impact Board will improve data sharing and alignment across government. However, they do not fully commit to standardising all reporting requirements nor to the specific oversight role recommended, maintaining decentralised decision-making.
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35 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Previous ODA reductions detrimentally impacted FCDO's vital Monitoring, Evaluation and Learning budget.
As a global leader in promoting VfM across development spending, it is vital that the FCDO protects its MEL budget. MEL should not be optional; it is a core function that underpins effective, accountable and adaptive programming. Without appropriate and … Read more
Government Response
The government disagrees with the implied recommendation to protect MEL budgets or ringfence MEL spend. They state that ringfencing is inappropriate as FCDO needs flexibility to prioritise resources, though they remain committed to proportionate and strategic MEL and will make monitoring mandatory.
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36 Conclusion Rejected
7th Report – Assessing Value, Ensu…
Ringfence Monitoring, Evaluation and Learning spend within programme budgets to protect accountability and impact.
It is essential that the FCDO ringfences MEL spend within programme budgets and protects these throughout the reduction of ODA to 0.3% of GNI. Further cuts to MEL threaten to undermine the very assessments that sustain the accountability and impact … Read more
Government Response
The government rejects the recommendation to ringfence MEL spend within programme budgets, stating it is not appropriate in the current fiscal landscape as FCDO requires flexibility to prioritise resources. They remain committed to proportionate and strategic MEL.
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37 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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 models for programme managers.
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38 Conclusion Accepted
7th Report – Assessing Value, Ensu…
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 … Read more
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.
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Government Response AI assessment · 38 of 10 classified
Accepted 8
Accepted in Part 12
Acknowledged 3
Rejected 15
Total 10 recs + 28 conclusions
Correspondence 3 letters
27 Mar 2025 Correspondence from the Minister of State for International Development, Latin America and Caribbean relating to Initial 2025/26 Official Development Assistance (ODA) allocations and the Spring Statement, 27 March 2025
Parliament page
14 Mar 2025 Correspondence from the Minister of State for International Development, Latin America and Caribbean relating to Preparations for the reduction in UK Official Development Assistance (ODA), 14 March 2025
Parliament page
11 Mar 2025 Correspondence from the Minister for the Indo-Pacific relating to the decision not to move from Abercrombie House, East Kilbride to Glasgow, 6 March 2025
Parliament page