Aid agencies to be paid by results to 'reduce costs and waste'

From Aid | The Guardian Thu Jan 17 2013, 19:54:00

Development secretary introduces new code of conduct in crackdown on spending through external suppliers

Aid agencies and other suppliers must cut the cost of their contracts and will in future be paid by results under rules to be published today by the development secretary, Justine Greening.

With the coalition's spending on international aid under constant pressure from parts of the Conservative party and lacking majority public support, she has warned for months that she will crack down on spending through external suppliers.

The new code of conduct says external agencies must find "opportunities to reduce costs and waste" during their contracts, publish more information about results achieved, and accept that payment will be "in line with results" - a reform being introduced across public services from probation to drug rehabilitation, and in effect teachers' pay.

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