Documents to download

For the first time since 2013, the UK will not meet the UN target of spending 0.7% of Gross National Income (GNI) on Official Development Assistance (ODA). Citing the economic impact of the pandemic, the Government has instead allocated 0.5% of GNI for ODA in 2021, as a “temporary measure.”

ODA refers to aid intended to promote the economic development and welfare of developing countries. Such assistance must be reported to the Organisation for Economic Cooperation and Development (OECD).

It is estimated total ODA will be £11.1 billion in 2021, down from £14.5 billion a year before. While final allocations will not be confirmed until 2022, the UK Government, UN agencies, and NGOs have announced spending reductions to specific countries and programmes.

New strategy for targeting UK aid

In line with the Integrated Review of Security, Defence, Development and Foreign Policy, the Government intends to use its development spending and diplomacy to meet seven priorities for UK aid in 2021/22. These include girls’ education, climate change, and aiding the global response to the pandemic.

Funding for strategic priorities

In April 2021, the Foreign, Commonwealth and Development Office (FCDO) announced funding allocations for its seven priorities, totalling £8,115 million. This represents around 80% of UK ODA spending in 2021/22. It includes allocations of £1.3 billion to address the pandemic and support global health resilience and £0.9 billion for humanitarian preparedness and responses.

The International Development Committee Chair said it was “disappointing” that girls’ education was allocated £400 million, the second lowest thematic area spend. In June, however, the Government announced an additional £430 million over five years to the Global Partnership for Education.

Funding for individual countries

ODA will focus on Africa, the Indo-Pacific and countries affected by risk of famine, including Yemen and Somalia. The FCDO will reduce its ODA for programme delivery in China by 95%, to £0.9 million.

In September, the FCDO published its annual report. This includes plans for country-level ODA spending in 2021/22. The FCDO has currently allocated ODA to 39 countries and territories in 2021/22. In 2019, the UK funded bilateral programmes in 136 countries and territories. Of these, Department for International Development (DFID) funding focused on 46 countries and territories (excluding the Overseas Territories of Montserrat and St Helena).

Of those 46 who received bilateral ODA in 2019, Cameroon, the Central African Republic, Ukraine, and Eritrea are currently not included as receiving ODA from the FCDO in 2021/22. The final list is likely to be longer, as it does not currently include ODA spent by other departments, core contributions to multilateral organisations, regional programmes, or capital investments.  

The UK Government has previously made reduced spending pledges to Yemen and Syria, while also identifying them as priority countries for humanitarian aid. The FCDO intends to continue its diplomatic work to resolve the conflicts.

Funding for agencies and programmes

The FCDO emphasises final funding allocations have not been made. However, several UN agencies have publicised funding reductions from the UK. In 2021, UNICEF will have its core funding from the UK to support children reduced by 60%, and the UK will cut 85% of its contribution to the UN Population Fund’s family planning programme.

Development NGOs have said that the funding decisions undermine the Government’s intentions to prioritise global health during the pandemic and girls’ empowerment. The FCDO says its equalities assessments found programmes targeting those with protected characteristics were no more likely to be reduced than other programmes.

The Government has announced an increase in core funding to the World Health Organization and said the cost of meeting its pledge to share 100 million vaccine doses globally by June 2022 will be in addition to funding already committed to ODA in 2021.

Accountability and coordination of ODA

The FCDO intends to better coordinate cross-Government ODA spend and has reviewed the role of the Independent Commission for Aid Impact (IACI), the body that scrutinises UK ODA. The FCDO is now working with the ICAI to implement the review’s recommendations. These include a greater emphasis on practical recommendations for delivering programmes and directing scrutiny to the seven aid priorities.

Will the 0.7% target be restored in 2022?

In July 2021, the Treasury published a written statement setting out the tests required to be met to restore the 0.7% target. These are when the Budget for Responsibility (OBR) shows that “on a sustainable basis” the country is not borrowing for day-to-day spending and the ratio of underlying debt to GDP is falling. The Library’s 0.7% aid target sets out further detail.

The Commons supported the tests on 13 July.

In the Autumn 2021 Budget and Spending Review, the Government said the fiscal tests are forecast to be met in 2024/25 and has provisionally set aside unallocated ODA funding for that year to the difference of 0.5% and 0.7% of GNI. The Treasury has also allocated £11.4 billion of ODA to departments in 2022/23, £11.8 billion in 2023/24, and £12.3 billion in 2024/25, equivalent to 0.5% of GNI on ODA (based on current forecasts).

Update log

15 October 2021: Added further details based on recent FCDO spending data and plans.

5 November 2021: Added details on OBR forecasts and spending to 2025

Documents to download

Related posts