Policy Updates

On April 29, 2025, The Straights Times reported that the UK is reconsidering its GBP2 billion (US$2.5billion) commitment to the World Bank’s IDA, this move follows a shift in government priorities, with funds redirected from foreign assistance to bolster defense spending amidst heightened security concerns in Europe.

The pledged amount, which marked a 40% increase from the previous commitment, was announced in November 2024. However, the Labour government is now reviewing their ODA budget under Development Minister Jenny Chapman, with potential reductions to the IDA contribution being considered.

Critics argue this would represent a significant departure from the UK’s historical leadership in global development under previous governments.

On April 4, 2025, the UK pledged an additional GBP10 million (US$13 million) to support relief efforts in Myanmar following the devastating earthquake.

This brings the UK’s total contribution to GBP19 million (US$25 million). The funding will provide emergency shelter, food, water, and medical aid to affected communities, reaching over 15,000 people to date. UK-funded local partners are already on the ground delivering life-saving assistance, ensuring resources reach those most in need.

On March 29, 2025, the UK government announced a GBP10 million (US$13 million) assistance package to support Myanmar following the devastating 7.7 magnitude earthquake in its central region, which seeks to provide life-saving assistance, including food, water, medicine, and shelter, to the most affected areas.

This assistance will be delivered through UK-funded local partners already mobilizing on the ground to address urgent humanitarian needs. The FCDO is also offering consular support to British nationals in Myanmar and neighboring Thailand.

Minister of State for Development Baroness Jennifer Chapman underscored the UK's commitment to providing immediate relief and expressed condolences to the people of Myanmar.

On March 27, 2025, the UK government outlined changes to its ODA spending in the Spring Statement, reducing the ODA/GNI budget from 0.5% in FY2024/2025 to 0.3% by April 2027, in order to facilitate an increase in defense spending while ensuring predictability and stability in aid budgets.

Key reforms include setting annual assistance budgets based on GNI forecasts and removing automatic adjustments for economic fluctuations. The UK government also plans to modernize development efforts by prioritizing partnerships, mobilizing private capital, and aligning assistance programs with UK strategic objectives.

Minister of State for Development Baroness Jennifer Chapman emphasized the importance of delivering value for taxpayers while ensuring the UK's humanitarian and development commitments continue.

For 2025 to 2026, the government confirmed plans to continue essential development work, honor existing contracts with partners, and uphold the commitment to the UK's humanitarian role.

On February 28, 2025, the UK government set out to reduce ODA from 0.5% to 0.3% of the GNI by 2027, or approximately GBP6 billion (US$7.8 billion), with the intention to bolster their defense spending.

This cut comes just 5 months after UK Primer Minister Keir Starmer promised at the UN that it would be a leading development contributor. This is further complicated by the fact that of this budget allocation, around 40% has historically been used to cover housing and administrative costs for refugees, meaning the true international ODA spending is far smaller.

On February 1, 2025, the UK government has announced GBP22 million (US$26 million) in additional humanitarian assistance for Myanmar in 2024-2025 to support nearly one million vulnerable people.

This funding will provide essential healthcare, nutrition assistance, and treatment for diseases such as tuberculosis and malaria. The support will also strengthen climate resilience by improving food security, water management, and disaster preparedness, helping communities withstand extreme weather events.

On January 28, 2025, UK Minister for Development Anneliese Dodds announced a GBP17 million (US$22 million) assistance package to support Gaza after the ceasefire, while reiterating more assistance will be needed.

This assistance package is aimed at ensuring healthcare, food, and shelter reach civilians, while supporting other vital infrastructure within the country. The additional funding would bring UK’s overall spending over the past financial year to around GBP129 million (US$167 million) within the Occupied Palestinian Region.

On January 24, 2025, the UK government’s discussions within the House of Commons on the Climate and Nature Bill were suspended.

This bill would make it legally binding for the UK to meet its international climate agreements. It was originally introduced by Liberal Democrat Roz Savage and was prevented over concerns from the Labour party that it was too ambitious and was unlikely to be upheld.

On January 6, 2025, the Royal College of Nursing conduted research stating that the UK cut health ODA to some of the world’s vulnerable countries at the same time as recruiting thousands of their nurses.

The Royal College of Nursing said Labour has a duty to fix the ODA cuts imposed by the previous government, and to work on increasing the UK’s domestic supply of nurses.

Between 2020 and 2023, direct UK ODA for health-related projects in “red list” countries – those with the most severe workforce shortages – fell by nearly 63%, from GBP484 million (US$684 million) to GBP181 million (US$234 million).

Spending on projects designed to strengthen the healthcare workforce in those countries fell by 83%, from GBP24 million (US$34 million) to GBP4 million (US$5 million).

At the same time, the number of nurses from these countries on the UK’s national register rose sharply. There were 11,386 registered in September 2020, and 32,543 in September 2024.

On January 3, 2025, the IDC announced that the UK Chancellor of the Exchequer Rachel Reeves did not answer their question on how the Government decided to set ODA spending at 0.5%.

Reeves reiterated that the UK government is still committed to spending 0.7% of GNI on ODA, but that the ‘fiscal tests’ for this have not been met. She added that the Government has no plans to update these tests, as they have the endorsement of Parliament. The Chair of the IDC Sarah Champion also did not receive a direct answer to this question when she raised it in a written question in Parliament to the Treasury.

Champion expressed her appreciation for the Chancellor's response but noted that it left many questions unanswered. She questioned the reasoning behind choosing a 0.5% GNI target if 0.7% is considered unattainable, asking whether the figure is arbitrary or central to the Government's ODA strategy. Champion also expressed her anticipation for more detailed clarification from government ministers in the new year.