UK aid cuts: Funding slashed for underperforming groups

The Government will slash funding for underperforming aid organisations and cut support for some countries as Britain's development assistance budget faces dramatic reductions. The Foreign Office announced the changes as part of what ministers called a "modernising" approach to international aid.

Development minister Baroness Jenny Chapman said every pound must work harder for UK taxpayers as the Government prepares to cut aid spending from 0.5% of gross national income to 0.3% by 2027. The reduction was announced in February to help fund increased defence spending.

Focus shifts to proven organisations

The Foreign, Commonwealth and Development Office (FCDO) will prioritise global organisations with proven track records, including the World Bank and vaccine alliance Gavi. Bilateral support for some countries will decrease, though the FCDO has not yet revealed which nations will be affected.

Multilateral organisations deemed underperforming will face future funding cuts as the UK shifts towards sharing expertise in finance, science and tackling climate change rather than traditional aid donations. The approach aims to help countries become less dependent on aid over time.

Protected funding for crisis zones

Despite the cuts, humanitarian spending will continue for crisis zones including Gaza, where funding remains protected. Support will also continue for Ukraine and Sudan, with a reserve fund maintained to respond quickly to future emergencies.

The aid budget reduction will help fund defence spending increases to 2.5% of GDP by 2027, with plans to reach 3% in the next parliament. Former international development minister Anneliese Dodds resigned over the decision, arguing aid should not "absorb the entire burden" of defence spending increases.

World Bank receives major commitment

The FCDO confirmed the International Development Association will receive £1.98 billion over three years to help 1.9 billion people in the world's poorest countries. World Bank president Ajay Banga said every taxpayer pound would be multiplied through the bank's ability to mobilise capital and private sector partnerships.

Gavi will receive £1.25 billion between 2026 and 2030, down from Boris Johnson's original £1.65 billion pledge over five years in 2020. The funding will help protect up to 500 million children from diseases including meningitis, cholera and measles.

Charities warn of impact on vulnerable

Bond, the UK network for international development organisations, warned the Government was "deprioritising" funding for education, gender programmes and countries experiencing humanitarian crises. Policy director Gideon Rabinowitz said the world's most marginalised communities would pay the highest price.

The One campaign warned that deeper cuts await next year, with director Adrian Lovett saying the UK would "plummet over the cliff edge" of far more severe reductions. He urged ministers to set a clear path back to spending 0.7% of national income on international aid.

(PA/London) Note: This article has been edited with the help of Artificial Intelligence.