Committee publication · Correspondence · 23 June 2026
Correspondence from the Minister for Development and Africa relating to the Independent Commission for Aid Impact, 17 June 2026
Summary
Baroness Chapman responds to the International Development Committee's concerns about budget cuts to the Independent Commission for Aid Impact (ICAI). The Government defends the cuts as proportionate to broader ODA reductions to 0.3% of GNI by 2027, driven by increased defence spending, and states ICAI retains capacity for independent evaluation. No formal review is planned.
Key findings
- FCDO ODA budget reduced to 0.3% of GNI by 2027 per 2025 Spending Review; ICAI budget cuts characterised as broadly proportionate within this context
- ICAI budget reductions span pay, non-pay, and programme budgets, calculated against 2025/26 baseline, consistent with other FCDO reductions
- FCDO2030 restructure prioritised protecting overseas platform; ICAI staff on FCDO contracts offered opportunity to bid for alternative FCDO roles to manage workforce reductions
- Government does not consider a further formal FCDO-led review of ICAI necessary; existing audit and governance processes will assess impact of changes
- ICAI was reviewed by FCDO Internal Audit Department in January 2026; Cabinet Office leads on independent reviews of Arms' Length Bodies with no current plans for specific ICAI review
Tone
ProceduralTopics
public-financedevelopment-aidgovernment-accountabilitydefence-spending
Key actors
Baroness Chapman of Darlington, Sarah Champion MP, International Development Committee, Independent Commission for Aid Impact (ICAI), Foreign, Commonwealth and Development Office (FCDO), Cabinet Office, National Audit Office (NAO)
Notable line
“ICAI budget reductions – across pay, non-pay and programme budgets – were calculated against a baseline of last financial year, 2025/26; consistent with other budget reductions in FCDO.”
Key Quotes
“… we take transparency and value for money in Official Development Assistance (ODA) spending very seriously”
“ICAI's budget reduction is broadly proportionate, while enabling continued independent evaluation of the UK's development work.”
“It is for ICAI to decide how they wish to deploy their resources to meet their mandate.”
“We do not consider a further formal FCDO-led review necessary at this stage but will keep arrangements under review”
Source · parliament.uk record ↗