British overseas spending is set to fall to the lowest level this century.
The UK’s overseas aid spending is forecast to fall to its lowest level this century as long-feared cuts are expected to commence, affecting non-governmental organizations and charities hard from 2026.
Sir Keir Starmer’s government announced in February 2025 that it would reduce overseas aid spending from 0.5% of Gross National Income (GNI) to 0.3% by 2027 in order to fund a rise in defense spending to counter Russia.
However, of the total USD 8.71 bn planned cuts, only USD 670 mn has already been earmarked for the period 2025-2026. This was prior to a rapid acceleration, with the government planning to cut USD 6.432bn during the 2026-2027 period. This data suggests that the real crunch will begin during the 2nd half of 2026.
The chair of parliament’s international development select committee, Sarah Champion, has been calling for the government to reverse the cuts, adding that 2026 would reveal the full impact of the reduction.
Labour MP Champion said that the awful reality of cutting 40% from the aid budget, especially for the world’s poorest and the UK’s protection from global health and security threats, will be laid bare in the new year.
The cuts will add to pressures within the Foreign, Commonwealth, and Development Office that’s moving through a restructuring driven by permanent undersecretary Olly Robbins.
The Foreign Office, which 5 years back in 2020, absorbed the Department for International Development, is expecting to witness staffing cuts up to 25% in the coming years. This is where the sections overseeing aid are expected to be hit hard.
The aid budget’s percentage of GNI will drop to 0.3% by 2027-2028. This is the lowest in the last 6 years, since 1999. The amounts allocated to move overseas are likely to be even lower due to funds being diverted to the Home Office to fund asylum seeker care.
Bond, the UK umbrella group for organizations operating in international development, said that there was already a devastating impact from the cuts, with programs from health centers in Somalia to education programs in Syria being compelled to shut down.
However, the worst consequences are yet to be realized, as allocations of the 2026-2027 UK aid budget are still to be finalized by the FCDO. This is with little clarity disclosed about how these destructive decisions are being informed, said Gideon Rabinowitz, Bond’s director of policy & advocacy.
The UK government must urgently improve transparency in its reasoning and decision-making behind the cuts. It also needs to clearly set out a strategy for how it will continue to honor its global commitment.
The UK’s development minister, Baroness Jenny Chapman, who took the reins from the previous minister, Annelise Dodds, stepped down when the cuts were announced. Chapman has made it clear that overseas aid is not charity and has emphasized value for money for the UK taxpayer in recent months.
Chapman has sought to reframe the UK’s position as one of partnerships to help countries. This is rather than focusing on traditional aid programs, adding that during December, the UK was moving from donor to investor in Africa.
However, campaigners and NGOs are concerned that the UK risks losing influence overseas and that the aid budget will be too small to have a significant impact, with eventual repercussions for the UK.
The Department of Health and Social Care funds the projects overseas to prepare for pandemics alongside combating deadly diseases. It’s now losing almost 2/3 of its aid money over the 2 years up to 2027-2028, reduced from USD 443.54 mn to USD 164.82 mn.
A spokesperson for FCDO said that the prime minister had made the decision, as defense and security were the primary responsibilities of any government, adding that it remained resolutely committed to international development.
