International agency Oxfam today welcomed action by the UK government in response to the crisis caused by rising global food prices but said that not all the money announced was new, and that definitive action was needed on biofuels.

Oxfam's Director of Policy, Phil Bloomer, who is attending a meeting with Prime Minister Gordon Brown today, said:

"Food price rises pose a significant threat to poor people in developing countries, many of whom spend more than half their income on food already and will face hunger and even starvation unless we act now. For this reason the money announced today by the Government is welcome, as is their recognition of the need for both short and long term responses. However, it seems that not all of the money is new.

"We urge the government to make genuine and concrete changes. They could start by scrapping mandatory targets for biofuels, which are not only pushing up prices, but are linked to land-grabs and labour rights abuses in poor countries.

"Indeed, the £455m package announced today is less than total UK tax rebate for biofuels - currently standing at £550m a year. The Government should not only scrap its own mandatory targets but must show leadership in Europe and make sure no further targets are set there."

Oxfam has produced a briefing on food prices that calls for action in response the crisis including:

•Reassessment of mandatory biofuels targets in light of negative social and environmental side effects in developing countries

•Increased donor and national government investment in small-scale agriculture in developing countries, especially in Sub-Saharan Africa.

•A better global system of safety nets, including social protection schemes such as minimum income guarantees and cash for work programmes

•Reform of the food aid system to be faster, more flexible, cheaper. Donors should provide cash rather than food 'in kind'.

•Space for national trade policies to manage food security and rural development

•Recognition that climate change is going to exacerbate these problems, requiring urgent mitigation and adaptation response

Phil Bloomer: "The current situation is a threat - but it is also an opportunity to address the underlying causes of the crisis. Deeper and more sustained investment in small-agriculture in developing countries is needed to enable poor marginalised producers and agricultural workers, especially women, to get out of poverty and benefit from agricultural trade.

"Also, climate change is causing increasingly erratic weather, which is impacting on supply and putting upward pressure on prices. So money to help poor countries adapt and action to mitigate further warming must be forthcoming."

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For more information contact Amy Barry or Lucy Brinicombe on 01865 472498 or 07786 110054

* According to DFID, the money for WFP and Ethiopia is new, but the agricultural research money has been announced before