Double Whammy For Poor Countries As UK Reduces Aid Spending at Same time As USA

26th February 2025

The UK's foreign aid. budget has seen fluctuations in recent years. Announced today UK will cut foreign aid to finance the increase in defence spending. However it will hit at the same time as Donald Trumps cut in USaid.

2022: The UK's Official Development Assistance (ODA) spend was £12.8 billion, representing 0.51% of the UK's Gross National Income (GNI). This was an increase of £1.4 billion (11.9%) compared to 2021.

2023: The UK's ODA spend increased to £15.4 billion, representing 0.58% of GNI. This increase was partly due to additional funding provided through the Autumn Statement 2022.

2024: The UK's foreign aid budget was set at £13.3 billion for the financial year 2024/25.

2025: The UK government announced a reduction in foreign aid spending from 0.5% of GDP to 0.3% to fund an increase in defence spending5.

These changes reflect the government's efforts to balance international development commitments with domestic priorities and economic challenges.

Here are some examples of how the UK's foreign aid budget is allocated to different countries for the financial year 2024/25:

Ukraine: £250 million

Ethiopia: £200 million

Afghanistan: £150 million

Syria: £100 million

Yemen: £90 million

Somalia: £80 million

Nigeria: £70 million

Pakistan: £60 million

Bangladesh: £50 million

Brazil: £87,000
some details about the UK's foreign aid programs:

Health: The UK allocates a significant portion of its aid budget to health programs. This includes funding for initiatives to combat diseases such as malaria, HIV/AIDS, and tuberculosis, as well as supporting maternal and child health.

Education: The UK supports education programs in developing countries, focusing on improving access to quality education for children, particularly girls. This includes building schools, training teachers, and providing learning materials.

Humanitarian Aid: The UK provides humanitarian aid to countries affected by conflicts, natural disasters, and other emergencies. This includes funding for food, shelter, medical care, and other essential services.

Economic Development: The UK supports economic development programs that aim to reduce poverty and promote sustainable growth. This includes funding for infrastructure projects, job creation, and support for small businesses.

Climate Change: The UK funds programs to help developing countries mitigate and adapt to the impacts of climate change. This includes support for renewable energy projects, reforestation, and disaster risk reduction.

Governance and Security: The UK supports programs that promote good governance, rule of law, and security in developing countries. This includes funding for anti-corruption initiatives, judicial reforms, and capacity building for law enforcement agencies.

Gender Equality: The UK funds programs that promote gender equality and empower women and girls. This includes initiatives to combat gender-based violence, support women's economic empowerment, and promote women's participation in decision-making processes.

Water and Sanitation: The UK supports programs that improve access to clean water and sanitation facilities in developing countries. This includes funding for the construction of wells, latrines, and water treatment facilities.

These programs reflect the UK's commitment to supporting global development and addressing the needs of the world's poorest and most vulnerable populations.

USA
The cuts to the U.S. Agency for International Development (USAID) have already begun. President Donald Trump ordered a 90-day freeze on USAID funding shortly after taking office last month. The Trump administration is moving to dismantle the agency, close its offices worldwide, and lay off staff as part of a broader effort to curb federal spending2. This has caused widespread disruption and sparked concerns about the real-world consequences if USAID is largely defunded or disbanded altogether.

The Trump administration has initiated significant cuts to USAID programs. Here are some examples of the programs affected:

Election-Related Contracts: The Consortium for Elections and Political Process Strengthening, which includes the National Democratic Institute, the International Republican Institute, and the International Foundation for Electoral Systems, has seen $361 million in agreements canceled.

Health Projects: Several health-related projects have been terminated, although they appear under-represented given the share of USAID financing that goes to health. The canceled agreements focus more on governance and institutions rather than specific health conditions.

Moldova: Projects in Moldova have faced significant cuts, with $163 million in agreements canceled compared to $309 million obligated to projects in the country in 2023.

General Cuts: The overall cuts amount to a little over $4 billion, equivalent to about 14% of the total of about $30 billion in prime awards by USAID in 2024.

These cuts are part of a broader effort to curb federal spending and have sparked concerns about the real-world consequences of defunding or disbanding USAID

Filling the gaps
The recent cuts to USAID funding have left a significant gap in global health aid, and several countries and organizations are stepping up to help fill this gap:

Nigeria: Nigerian lawmakers have approved an additional $200 million for the health sector to offset the shortfall from US aid cuts. This funding will be used to procure vaccines and medical supplies to ensure treatments can continue.

European Governments: Countries like Germany, France, and Norway have been reducing their aid to Africa in recent years, but there are ongoing discussions about increasing their contributions to help fill the gap left by the US.

Philanthropies and Multilateral Development Banks: Organizations such as the Bill & Melinda Gates Foundation and the World Bank are likely to play a crucial role in providing additional funding to support global health initiatives.

African Governments: Some African countries are exploring ways to increase their domestic funding for health programs to reduce their reliance on foreign aid. This includes reallocating budgets and seeking new revenue sources.

While these efforts are commendable, it remains a challenge to fully replace the substantial funding previously provided by the US. The global health community is working together to find solutions and ensure that essential health services continue to be delivered.