USAID Funding Pause

Wera Hobhouse Excerpts

Tuesday 10th June 2025 Westminster Hall

[Brian Mathew]

I completely agree with the hon. Member. An ActionAid project in Zambia safeguarding women from sexual exploitation was forced to close almost overnight.

Oxfam says that, thanks to the cuts to USAID, 95 million people could lose access to basic healthcare, potentially leading to 3 million preventable deaths a year, and 23 million children could lose access to education. When services collapse and diseases can spread unchecked, people lose hope, and they do not stay put. Migration pressures rise, conflicts hit new boiling points and markets react. As covid taught us all too well, deadly viruses such as Marburg and Ebola could leap from remote villages to our high streets in a matter of weeks, especially when the staff to deal with them have been given stop orders and removed from frontline duty.

We are already seeing other powers whose interests do not align with ours begin to fill the gaps left by USAID. China and Russia are expanding their influence in regions where western credibility is weakening. Just last week, some of us on the IDC heard from an official in the Burma/Myanmar freedom movement that USAID’s withdrawal has happened at the same time as China has made quick inroads to prop up the military and curry influence in its efforts to get hold of rare earth minerals from that troubled country.

The United Kingdom has long prided itself on being a force for good in the world. Our work and leadership with British aid has not only saved lives but championed the best of our British values: fairness, the rule of law, health, education and opportunity across the globe. That is soft power in its most tangible form, and it is worth its weight in gold—and, more importantly, in lives and livelihoods. Sadly, we have made our own aid cuts recently, from the 0.7% GNI commitment down to 0.5% and then 0.3%. The reality is that with so much being spent on hotels for asylum seekers, instead of allowing them to work and pay their way while their status is determined, as little as 1% of UK GNI is now being spent on genuine aid.

We know what to do. We know that investing in WASH makes sense. We know that investing in girls’ education reduces child marriage, improves economic outcomes and reduces inequality. We know that investing in pandemic preparedness, vaccine infrastructure and vaccine research protects not just vulnerable people around the world, but our NHS and public health here at home. International development is therefore smart policy. It reduces the risks that we would otherwise spend billions more to contain. What should we do? We must reaffirm our commitment to restoring the 0.7% target and publicly commit not to just the rhetoric of aid, but to actually doing it—and doing it well.

The withdrawal of USAID has created a moment of reckoning; the world is watching and the vulnerable are waiting. I will end by paraphrasing President John F. Kennedy in his special message to Congress on foreign aid on 22 March 1961. We are aware of our obligations to the sick, the poor and the hungry, wherever they may live. It will both befit and benefit us to take this step boldly, on which will depend substantially the kind of world in which we and our children shall live. It is time for us to stand up and be counted.

[Wera Hobhouse (in the Chair)]

I remind Members that they should bob if they wish to be called. I will call the Front Benchers at 10.28 am. It looks like all Members will get to speak if they stick to six or seven minutes.

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[Alice Macdonald]

I fully agree. We have had programmes, such as the Equality Fund, where we have been clear on the importance of women’s rights-led organisations. I have met many women’s rights defenders of all ages who are doing amazing work. We must continue to back them and listen to them, because they know what is best in the context in which they work.

I am sure other Members will speak to the importance of investing in multilateral efforts, such as Gavi, the Vaccine Alliance, and the Global Fund, which I also want to back. Those funds have a proven return on investment for the UK taxpayer. The World Bank’s International Development Association fund and the African Development Fund also have important roles to play in alleviating poverty, and we have been big backers of those in the past.

As co-chair of the all-party parliamentary group on the United Nations, I would also like to underline the value of the United Nations. There is, of course, space for reform, and I am sure we are all aware of some of the flaws in the system, but it is a unique vehicle for coming together as a world to tackle some of the biggest challenges we face and to increase the value of our aid.

We must also look beyond aid to leverage other forms of financing, many of which we could leverage without cost to the taxpayer. As the Independent Commission for Aid Impact pointed out, foreign direct investment, remittances and other forms dwarf the overall aid budget, so I hope the UK will continue to lead on innovative financing. That includes how we can recycle International Monetary Fund special drawing rights. In 2020, we received an allocation of £19 billion from the IMF as part of the response to covid. We could re-channel that to provide zero-interest finance to low-income countries or through multilateral development banks. We could also put idle foreign reserves into action. A small portion of the UK’s largely idle exchange equalisation account could be used to support low-income countries.

The last Labour Government led on debt relief. I was proud of what we did at Gleneagles to lead those efforts. We must do so again, given that debt payments for low-income countries are at their highest for 30 years, with 32 African countries spending more on servicing their external debt than on healthcare. Given that 90% of low-income countries’ debt is governed by English law, the UK could do a lot to bring private creditors to the table to get the best possible deals. I hope the Minister can set out what we are doing in that regard, especially as we approach the conference on financing for development in Seville in just a few weeks’ time.

Finally, more broadly, we need a reset on aid and development. Indeed, the Foreign Secretary has been clear that we want to move to an approach founded on partnership, not paternalism, which puts the countries that have traditionally been recipients of aid in the driving seat. We have seen cases in the past. Indonesia, for example, used to be a recipient of Gavi funding but is now giving money itself. We need to look at success stories and say why they matter not only for tackling poverty but for increasing prosperity and tackling inequality, including in our own country. I see our development work as insurance; it is a downpayment for the long term to tackle some of the upstream drivers of migration.

I hope that we will continue to lead internationally, as we are domestically, on using science, innovation and technology to its best effect. Innovators, such as the John Innes Centre in the constituency next to mine, are doing amazing work to tackle hunger and climate change, and we must back those efforts to look at how we can support developing countries abroad.

We all know that tough decisions are having to be made in the extraordinary times in which we live, but I know that this Government are internationalists. I believe that our party will continue to lead and use all the levers at our disposal to tackle poverty and inequality wherever they are found.

[Wera Hobhouse (in the Chair)]

I remind Members to stick to the time limit as much as they can.

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[Wendy Morton (Aldridge-Brownhills) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I congratulate the hon. Member for Melksham and Devizes (Brian Mathew) on securing the debate. It is very timely, coming as it does one day before the Chancellor’s spending review announcement.

It is more than three months since the Prime Minister announced the reduction in aid spending, yet we still await a clear picture of what that means, as my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) eloquently set out. I appreciate that there are challenges for the Minister but, like the international development sector and partners, I still have many unanswered questions about what this means for UK development priorities, especially in the context of changes to USAID.

Decisions about the levels of US aid are, quite rightly, a matter for the US Government, but we should acknowledge that this is the new reality we are working with. It is therefore incumbent on Ministers to be across the changes and the detail, and to understand what they mean for the sector and our partners.

What assessment has the Department made of the impact of the changes to USAID? Understanding where the impact will be is crucial to ensuring that our programmes are as effective as they can be, given the global and domestic context. With that in mind, has the Minister assessed the number of UK aid programmes that are likely to be impacted and which sectors will be most affected? I would also be grateful for an update on her latest discussions with her counterparts in the US, as well as counterparts in other donor countries. Is she aware of any programmes or policy areas that the US is vacating where there might be appropriate opportunities for the UK to take on the mantle and further our own national interest?

Global health, as we have heard today, is an area where the UK has made a significant and positive contribution, for example to Gavi and the Global Fund. In 2020, while we hosted the global vaccine summit, it was the Conservative Government who committed £1.65 billion to Gavi. During the last two Global Fund replenishments, we pledged £1 billion in 2022 and £1.46 billion in 2020. These interventions really do matter: Gavi has saved 18.8 million lives and the Global Fund 65 million. Those are not numbers, but real lives, real people and real results. Sadly, we are yet to see a pledge from this Government.

Another example of global health in action is the Tackling Deadly Diseases in Africa programme. By working with African partners and the World Health Organisation to help to detect and tackle future epidemics and drug-resistant infections, the programme was integral to stopping Africa’s worst Ebola outbreak in 20 years. It is therefore rather concerning that we read in the press that the programme is at risk. Diseases do not respect borders, and we need to understand the risk of the changes for us at home. What assessment has the Minister made, ahead of the spending review, to inform her about how the global health budget should be managed?

On women and girls, the UK also has a good story to tell. In government, the Conservatives launched the women and girls strategy for 2023-30, which affirmed our commitment to the three Es: education, empowering women and girls, and ending violence. We worked with partners such as Education Cannot Wait and the Global Partnership for Education, demonstrating how the public and private sectors can work together to achieve maximum impact. Similarly, sexual and reproductive health and rights programmes are, as we have heard today, essential for saving lives and achieving gender equality, and, crucially, for empowering women. This is an area where the UK has a strong record of delivering.

As we are sadly all too aware, conflict has a disproportionate impact on women and girls. Too often, they are locked out of efforts to prevent and resolve conflicts, and to build peace. The women, peace and security agenda we championed in government is about building a more representative and effective approach to tackling conflict and advocating for women’s rights in an ever more challenging world. It matters because empowered and engaged women make societies more prosperous and more secure. The Minister’s colleague, the International Development Minister, recently told the International Development Committee that education and gender are likely to be impacted by the changes to ODA. As a priority, can the Minister therefore help us understand how that will impact on the FCDO’s work in women and girls’ education, SRHR, maternal health and the broader women, peace and security agenda?

There are so many other areas I would like to raise in the context of changes to USAID. As ever, I am conscious of time, but it is important that we do not lose sight of, for example, strong institutions and capacity building, and tackling corruption and illicit finance. Without that, we cannot help partner countries to become stronger and better allies—something that is increasingly important in today’s ever more challenging world.

De-mining in post-conflict and active conflict zones remains crucial. In that area, funding to the Mines Advisory Group and the HALO Trust—great examples of British NGOs—has helped not to just support the clearance of explosives, but to raise awareness of the danger of mines and, crucially, train and build capacity in countries so that they can help to clear the mines themselves.

I would also like to touch on nutrition, which underpins good development. The recent Nutrition for Growth summit in March this year is yet another example of a sector left in limbo where the UK did not make a financial commitment.

It has been clear throughout this debate that there are still many unanswered questions and much uncertainty in the sector. I know that I am not alone in having received answers to written questions telling me to wait for the spending review. My latest tally of such answers is 59, and the story is the same almost regardless of the policy area. Similarly, the Shafik review of international development appears to have been left gathering dust on the Foreign Secretary’s desk. There are so many unanswered questions, creating much uncertainty in an ever-changing and complex world of conflict.

I have a specific and topical question to press the Minister on regarding ODA spending on Chagos. What funds from ODA will be used as part of the payments and support for Mauritius under Labour’s Chagos surrender deal?

Finally, how have the changes to USAID impacted the Minister’s decisions on UK development priorities? Has her Department made a full sector-by-sector, country-by-country impact assessment ahead of tomorrow’s spending review that takes into account the new development landscape we are operating in?

As we adjust to the new reality with respect to USAID, it is vital that the UK is alive to the impact on our international development programmes while ensuring effectiveness in our delivery. Like many hon. and right hon. Members, I am sure, I remain patient and will wait until the spending review tomorrow, but let me reassure the Minister and her Department that if I am left with more questions than answers after that, I will keep asking those questions.

[Wera Hobhouse (in the Chair)]

I ask the Minister to leave a couple of minutes for the lead Member to wind up.