The effects of DFID’s cash transfer programmes on poverty and vulnerability

Summary

Cash transfers – providing development assistance in the form of cash or cash equivalents – are an increasingly important and widely used tool for reducing poverty and vulnerability. ICAI examined how well the Department for International Development (DFID) used cash transfer programmes to reduce poverty and vulnerability.

The review on the effects of DFID’s cash transfer programmes found that the transfers – which include any regular payments made to individuals or households – had consistently increased incomes and consumption levels among some of the world’s poorest people, and presented a strong value for money case.

The review awarded DFID a green-amber score concluding the cash transfer programmes – which amount to an average spending of £201 million a year – were making a good impact, but could achieve even more, and we made four recommendations.