Is UK aid achieving value for money? MPs begin inquiry
On Tuesday 11 February, the International Development Committee will hear evidence on whether the UK is achieving value for money in its aid spending, as it begins its inquiry into the Foreign, Commonwealth and Development Office’s (FCDO) approach to achieving ‘Value for Money’.
All UK Government departments are obliged to achieve ‘Value for Money’ in their use of taxpayer money. Although there is no universal definition for this term, the National Audit Office defines it as “the optimal use of resources to achieve the intended outcomes”.
In 2011, the former Department for International Development (DFID) published a framework setting out its approach to achieving value for money. It said value for money in its programmes meant “maximising the impact of each pound spent to improve poor people’s lives.”
However, since that department was merged with the Foreign Office in 2021, the Foreign, Commonwealth and Development Office has not set out any definition or guidelines on how it approaches achieving value for money.
Meeting details
MPs are likely to ask how DFID ensured its programmes achieved value for money, how its approach to maximising each pound spent evolved over time, and how the FCDO now assesses value for money.
They may also ask whether current spending on aid reflects the FCDO’s objective to maximise the impact of money going towards those living in poverty, and what role multilateral organisations can play in helping to achieve value for money.