Official Development Assistance: Refugee Costs

The Government are tackling the asylum backlog at record pace so that we can work towards ending the use of hotels and ensure that more of our ODA budget is spent on our development priorities globally. Detailed decisions on how the ODA budget will be allocated are being worked through as part of the ongoing spending review.

The British public increasingly feel that development aid has sadly lost its clarity of purpose. While I accept that there are multiple objectives behind aid, and that of course lifting the world’s poorest out of poverty has long been at the heart of the FCDO’s mission, a reset in the social contract around development aid is clearly needed. What consideration has the Minister given to shaping development policy that explicitly addresses the upstream determinants of mass migration?

I agree with much of what my hon. Friend has said. Our development efforts, as the Foreign Secretary has said, have never just been about the aid budget. Peace and security, effective governance, access to private investment, remittance flows, efficient tax systems and access to trade opportunities are all essential foundations for development. That requires us to mobilise the full force of different resources and expertise across Government, our businesses and in universities, science and beyond.

Does the Minister agree that rather than being used to meet in-donor refugee costs, the official development assistance budget should prioritise tackling extreme poverty? It is now a year since the OECD development assistance committee’s mid-term review, which showed that the UK had only made good progress on two of the 10 recommendations since the 2020 peer review. What progress has the FCDO made over the last 12 months in better meeting the committee’s guidance?

The hon. Lady asks about important matters around spending on in-donor refugee costs. Thanks to the measures taken by the Home Secretary to reduce the asylum backlog and work towards exiting costly asylum hotels, we expect overall ODA spending on asylum to have been lower in 2024 than in 2023. There will always be some unpredictability, but we expect the actions to continue reducing in-donor refugee costs in this Parliament.