UK aid spending to 2029: the changing profile of development cooperation

A report analysing expected trends in UK development assistance as the UK implements a reduction in the aid budget from 0.5% to 0.3% of gross national income.

  1. Status: Completed
  2. Published: 16 July 2026
  3. Type: Strategic overview
  4. Subject: Climate change and biodiversity, Cross-government aid spend, Development finance, Fragile states, Humanitarian assistance, Multilateral spend, UK aid funds, UK aid trends
  5. Lead commissioner: Liz Ditchburn

Read the report

In 2026, the UK government published three-year official development assistance (ODA) allocations and spending plans for the Foreign, Commonwealth and Development Office (FCDO). This report analyses expected trends in UK development assistance as the UK implements a reduction in the aid budget from 0.5% to 0.3% of gross national income.

Key findings:

  • UK aid spending is expected to fall by around £6.5 billion (42%) from its 2023 record high to a historic low in 2027-28, following the government’s 2025 decision to reduce ODA to fund increased defence spending.
  • Traditional bilateral development programmes in longstanding partner countries are being sharply reduced. Eleven countries, including Kenya, Tanzania, Rwanda and Malawi, face reductions of up to 80-90% over three years.
  • Humanitarian assistance is set to become the dominant form of UK aid, with around £1.4 billion per year directed to countries in greatest humanitarian need.
  • Development finance, investment and expertise will play a central role. However, ICAI notes British International Investment (BII) still focuses more on larger middle-income markets than the poorest countries.
  • Despite overall budget reductions, the UK has committed around £6 billion to international climate finance over the next three years, approximately a fifth of the total aid budget and a higher share than under the previous commitment.
  • A significant portion of the ODA budget continues to be spent on in-donor refugee costs, with current plans suggesting between £1.5 billion and £2.2 billion per year will be used to support refugees in the UK through to 2028-29.