Committee publication · Correspondence · 23 June 2026
Correspondence to the Foreign Secretary and the Duchy of Lancaster relating to the Independent Commission for Aid Impact, 10 June 2026
Summary
The International Development Committee writes to the Foreign Secretary and Chancellor of the Duchy of Lancaster expressing serious concern about a 40% budget cut to the Independent Commission for Aid Impact (ICAI), implemented mid-year from 1 April 2026 with minimal notice. The committee questions whether proper Cabinet Office processes were followed, notes FCDO's lack of engagement with ICAI, and warns that reduced scrutiny capacity risks undetected inefficiency and misuse of development funds.
Key findings
- ICAI's budget cut 40% overall, with staff costs reduced nearly 50% in real terms and programme budget cut over 40%, implemented mid-year from 1 April 2026 after only 16 March notice
- FCDO has not responded to ICAI's requests for assurance that changes follow proper Cabinet Office processes or ICAI's Framework Agreement, and has engaged minimally with ICAI's Chief Commissioner
- ICAI was consulted only on programme budget cuts, not staffing reductions, raising transparency concerns
- Forced reductions in ICAI's scrutiny work have required removal of agreed reviews from its workplan, increasing risk that inefficiency and fund misuse go undetected
- Committee seeks clarification on basis for cuts, comparison with FCDO's cuts, value-for-money justification, and commitment to independent review and one-year assessment
Tone
CriticalTopics
Key actors
Sarah Champion MP, Yvette Cooper MP, Darren Jones MP, Independent Commission for Aid Impact, Foreign, Commonwealth and Development Office, Cabinet Office, International Development Committee
Notable line
“At a time when scrutiny is needed more than ever, ICAI has been forced to substantially reduce its scrutiny of the FCDO's development work.”
Key Quotes
“ICAI's budget has been cut by 40% overall. This has resulted in a likely reduction in staff costs of nearly 50% in real terms, and a more than 40% cut to its programme budget.”
“At a time when scrutiny is needed more than ever, ICAI has been forced to substantially reduce its scrutiny of the FCDO's development work.”
“This makes it more likely that inefficiency and misuse of funds will go undetected, and that ICAI will be unable to follow up with the Government on recommendations.”
Source · parliament.uk record ↗