The UK’s approach to funding the UN humanitarian system A performance review

DFID seeks to use its influence as a major funder of UN humanitarian agencies to build their capacities and improve global humanitarian practice. It has pursued a clear set of reform objectives, including better coordination, more flexible funding and greater use of cash transfers. It has coordinated well with other donors and has been a thought leader in a number of areas. It has innovated in its own funding practices in order to build UN agency capacity and tackle systemic problems such as overlapping mandates and unclear lines of accountability. DFID’s flexible, multiannual funding has helped to build the capacity of UN agencies and equip them to respond more effectively to emergencies. DFID is widely credited with introducing a stronger focus on value for money into humanitarian practice. Its reporting and due diligence requirements have given it greater ability to oversee how UK aid is spent, but are increasingly demanding, taking resources away from programme implementation. DFID has been highly influential in promoting the use of cash transfers. Other reform objectives have not been pursued as intensely and have achieved mixed results. While DFID has begun to align its influencing efforts at international and country levels, its humanitarian cadre lacks the resources to support the ambitious ‘Grand Bargain’ reform agenda. The use of payment by results to encourage improvements in the UN’s collective performance is experimental, but weaknesses in design and delivery, and DFID’s initial lack of engagement with other donors, suggest that this approach will need refinement to achieve DFID's objectives.