Research and Studies

Merging DFID and the FCO: Implications for UK aid

Key considerations, risks and recommendations

Merging DFID and the FCO Implications for UK aid cover

On 16 June 2020, the UK announced the merger of DFID and the FCO into the new Foreign, Commonwealth and Development Office, shifting aid towards the “national interest” and FCO priorities. Unlike DFID, which focused on poverty reduction, fragile states, and inclusion (gender, disability, “leave no one behind”), the FCO’s aid has historically targeted middle‑income countries with lower poverty levels and stronger domestic resources.

With UK aid projected to fall due to Covid‑19, the briefing warns of risks: reduced poverty focus, weaker transparency, and loss of DFID’s expertise. It recommends retaining DFID’s standards—poverty reduction as the primary objective, prioritization of the poorest and most fragile countries, strong commitments to inclusion, and high transparency—to safeguard the UK’s global leadership in development.

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