Committee publication · Correspondence · 2 June 2026

Correspondence from the Minister of State for International Development & Africa relating to Independent Commission for Aid Impact, 8 May 2026

From: International Development Committee

Summary

Baroness Chapman responds to the International Development Committee's concerns about budget cuts to the Independent Commission for Aid Impact (ICAI). She defends the cuts as proportionate to UK ODA reduction from 0.5% to 0.3% of GNI, confirms ICAI's total three-year programme budget at £5.04m with annual flexibility up to £2m, and outlines support for workforce planning and staff redeployment options.

Key findings

ICAI's budget reduction is characterised as proportionate to the overall UK ODA cut from 0.5% to 0.3% of GNI; the government states it prioritised protecting overseas platforms over UK-based reductions.
ICAI's three-year programme budget is settled at £5.04m total, with flexibility allowing up to £2m in any single year, but no flexibility on the pay/non-pay balance.
Government committed to allowing ICAI to use programme funding for staff costs under Programme Operating Framework Criteria and to provide HR/organisational development support.
FCDO permanent staff losing roles in ICAI will access wider FCDO restructuring processes; loaned staff from other departments will return to their home departments if roles end.

Tone

Procedural

Topics

public-financeinternational-developmentgovernment-budgetsoversight-institutions

Key actors

Baroness Chapman of Darlington, Sarah Champion MP, Independent Commission for Aid Impact (ICAI), ICAI Chief Commissioner, Foreign, Commonwealth and Development Office (FCDO), International Development Committee

Notable line

“ICAI's budget reduction is proportionate, while ensuring independent evaluation of ongoing work.”

Key Quotes

“I recognise the Committee's concern about the potential impact on ICAI's capacity to scrutinise and evaluate UK ODA effectively.”
— Baroness Chapman of Darlington · Acknowledging committee concerns

“UK ODA is reducing from 0.5% of GNI to 0.3% of GNI, within that wider context, ICAI's budget reduction is proportionate, while ensuring independent evaluation of ongoing work.”
— Baroness Chapman of Darlington · Justifying the budget cut

“ICAI's total programme budget over the three years is £5.04m, and ICAI may request programme funding of up to £2m in any single year, provided this remains within the overall three-year allocation.”
— Baroness Chapman of Darlington · Stating budget allocations and flexibility

“We have already committed to making the necessary changes to enable ICAI to use some of their programme funding to pay for staff, in line with the Programme Operating Framework Criteria, if they wish to do so as part of their planning.”
— Baroness Chapman of Darlington · Describing government support measures

View original document →

Source · parliament.uk record ↗