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
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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
12 results
Clear
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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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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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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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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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