Official Development Assistance: Refugee Costs

01 Apr

Question

The session in the House of Commons addressed concerns surrounding the expenditure of official development assistance (ODA) on in-donor refugee costs, questioning its effectiveness and value for money. The discussion shed light on the government's strategies to manage asylum backlogs and outlined their commitment to revitalizing the focus of ODA towards global development priorities.

Noah Law began the session by emphasizing the public's perception that the purpose of development aid has been diluted and pressed for a policy reorientation that tackles the precursors to mass migration. His query set the tone for a broader evaluation of long-term aid strategies that extend beyond financial assistance, recognizing the multifaceted approach needed for sustainable development.

Two out of 10 recommendations from the OECD's 2020 peer review were addressed by the UK.

Stephen Doughty's response to Alison Bennett's query on ODA spending improvements.

Stephen Doughty responded by aligning with Law's sentiments and highlighted the need for coordinated efforts, involving diverse sectors like governance, investment, and trade, to bolster development.

Reduced in-donor refugee costs expected in 2024 compared to 2023.

Doughty's projection of ODA budget allocations for asylum processing due to efficiencies implemented.

Alison Bennett contributed by criticizing the focus on in-donor refugee costs over poverty alleviation and queried the FCDO's progress against international benchmarks. Doughty offered reassurances of reduced ODA spending on asylum due to improved asylum processing efficiencies e vis-à-vis the OECD recommendations.

Outcome

The session primarily resulted in a reassertion of government commitment to repurposing ODA funds towards broader development goals by increasing efficacy in handling domestic asylum processes. The discussion also emphasized cross-sector collaborations as a vital cog in development strategies.

Key Contributions

Noah Law

Labour

Questioned the effectiveness of ODA on in-donor refugee costs and advocated for a strategic reset towards addressing root causes of migration.

Stephen Doughty

Outlined government efforts to reduce asylum backlogs to free more ODA budget for global priorities.

Alison Bennett

Liberal Democrats

Critiqued the prioritization of in-donor refugee costs over extreme poverty and demanded accountability on progress against OECD recommendations.

Original Transcript

Noah Law

St Austell and Newquay

Lab

Question

UIN: 903539

6. What assessment he has made of the value for money of official development assistance spending on in-donor refugee costs.

The Minister of State, Foreign, Commonwealth and Development Office

Stephen Doughty

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.

Noah Law

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?

Stephen Doughty

11:50

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.

Alison Bennett

Mid Sussex

11:50

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?

Stephen Doughty

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.

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