UK Aid Cuts Disproportionately Hit Poorest Nations, New Figures Reveal
New data from the UK's Foreign, Commonwealth and Development Office shows that funding to the world's poorest countries fell by 6.7% under Prime Minister Keir Starmer's government, while aid to higher-income nations increased. The overall Official Development Assistance budget dropped to 0.44% of gross national income in 2025, with further cuts planned to redirect funds toward defence spending.
New figures released by the UK’s Foreign, Commonwealth and Development Office indicate that the world’s poorest countries have been disproportionately affected by recent reductions in British foreign aid. Under the government led by Prime Minister Keir Starmer, funding to least-developed and low-income countries decreased by 6.7%, amounting to a cut of £118m.
In contrast, aid allocations shifted toward wealthier nations. Funding for lower-middle-income countries rose by 13%, while support for upper-middle-income countries increased by 2%. This divergence highlights a trend where higher-income recipients saw their share of aid grow even as the most vulnerable populations faced significant reductions.
The UK’s total Official Development Assistance (ODA) budget for 2025 fell to 0.44% of gross national income (GNI), down from 0.5% in 2024. This represents a decrease of £987m compared to the previous year. Prime Minister Starmer has announced plans to redirect aid money toward defence spending, which is expected to lead to further cuts in development assistance.
Humanitarian organizations warn that these financial reductions are already having severe consequences on the ground. Gideon Rabinowitz, director of policy and advocacy at Bond, stated that critical programmes are being forced to close due to the lack of funding. Specific examples include maternal health services in Sierra Leone and education initiatives for children with disabilities across Africa.
The data also reveals how aid is distributed within the UK itself. The highest single share of ODA, at 18.4%, was spent on in-country costs for asylum seekers, a slight reduction from the 20% recorded in 2024.
Among international recipients, Ukraine, Yemen, and Afghanistan remain the top three destinations for UK aid. However, future projections show stark differences in treatment: Ukraine’s aid is ringfenced, whereas Yemen is set to receive 28% less and Afghanistan 39% less by the 2028/29 fiscal year.
A report by the Active Learning Network for Accountability and Performance (Alnap) noted that global aid cuts by the UK, United States, and Europe resulted in 64 million fewer people receiving assistance last year. In response to the new figures, Bond is calling on the incoming prime minister, Andy Burnham, to reconsider the aid cuts introduced by his predecessor.