Biggest-ever aid cut by G7 countries a death sentence for millions of people - Oxfam

G7 countries, which together account for around three-quarters of all official development assistance, are set to slash their aid spending by 28 per cent for 2026 compared to 2024 levels.

It would be both the biggest cut in aid since the G7 was established in 1975 and in aid records going back to 1960, according to new analysis by Oxfam ahead of the G7 Summit in Kananaskis, Canada this weekend.

In February, the UK Government announced the biggest cut to the international aid budget in 25 years, cutting it from 0.5 to 0.3 per cent of gross national income by 2027. With over £2 billion currently being spent in the UK on refugee costs, and a risk of greater proportions being diverted to profit-making investments like in private fee-paying hospitals; there are rising concerns that very little will be left to spend on what it’s intended for – communities around the world facing increasing conflict, poverty and climate disasters.

Helen Stawski, Oxfam Policy Lead said: “The G7’s retreat from the world is unprecedented and couldn’t come at a worse time, with hunger, poverty, and climate harm intensifying. The G7 cannot claim to build bridges on one hand while tearing them down with the other. It sends a shameful message to the Global South, that G7 ideals of collaboration mean nothing.”

Next year will mark the third consecutive year of decline in G7 aid spending – a trend not seen since the 1990s. If these cuts go ahead, G7 aid levels in 2026 will drop by $44 billion to $112 billion. The cuts are being driven primarily by the US (down $33 billion), the UK (down $5 billion), Germany (down $3.5 billion) and France (down $3 billion).

Analysis from the ONE Campaign found that a blanket 40 per cent cut to the UK’s aid funding could result in:

• 606,000 fewer deaths averted over five years, due to cuts to Gavi, a life-saving programme that provides immunisations from deadly diseases
• 37.9 million fewer children immunised, against measles, polio, rotavirus and other deadly diseases- equivalent to more than twice the entire child population of the UK
• 293,000 fewer schoolchildren receiving, nutritious meals and essential food assistance through the World Food Programme

Economic projections show that aid cuts will mean 5.7 million more people across Africa will fall below extreme poverty levels in the coming year, a number expected to rocket to 19 million by 2030.

Cuts to aid are putting vital public services at risk in some of the world’s poorest countries. In countries like Liberia, Haiti, Malawi, and South Sudan, US aid had made up over 40 per cent of health and education budgets, leaving them especially exposed. Combined with a growing debt crisis, this is undermining governments’ ability to care for their people.

The UK and other G7 countries are not just reneging on commitments to global aid and solidarity, they are fuelling conflicts by allowing grave violations of international law, like in Gaza where people are facing starvation. Whether in Ukraine, the Occupied Palestinian Territory, the Democratic Republic of the Congo or elsewhere, civilians must always be protected, and aid is often the first line of protection they get. It’s a double standard that risks more global instability, conflict and atrocities.

While G7 countries cut aid, their citizen billionaires continue to see their wealth surge. Since the beginning of 2025, the G7 ultra-rich have made $126 billion, almost the same amount as the G7's 2025 aid commitment of $132 billion. At this rate, it would take the world's billionaires less than a month to generate the equivalent of the G7's 2025 aid budget.

By taxing the super-rich, the G7 could easily meet their financial commitments to end poverty and climate breakdown, whilst also having billions in new revenue to fight inequality in their own countries. Extreme inequality, poverty and the climate crisis are key drivers of today’s rising conflict and insecurity which is why governments should be dialling up, not down efforts to tackle them in order to build a safer world.

Oxfam is calling on the G7 to urgently reverse aid cuts and restore funding to address today's global challenges. More than 50 years after the United Nations set the target of 0.7 per cent of income for aid spending, most G7 countries remain well below this.

Oxfam is also urging the G7 to support global efforts led by Brazil and Spain to raise taxes on the super-rich, and to back the call from the African Union and The Vatican for a new UN body to help manage countries’ debt problems.

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For more information and interviews, please contact Lisa Rutherford on 07917 791 836 /lrutherford@oxfam.org.uk

Notes to editor

According to OECD Data Explorer, the combined annual aid expenditure of the G7 in 2024 was $156.694 billion. Canada spent $7.323 billion, the United States $61.821 billion, Japan $17.583 billion, France $15.047 billion, Germany $31.382 billion, Italy $6.534 billion, and the United Kingdom $17.005 billion.

Donor Tracker estimates that the decline in combined annual aid spending of the G7 countries for the period 2024 to 2026 will be -$44.5 billion.

In 2024, aid from G7 countries declined by 8 per cent, and projections for 2025 point to a sharper drop of 19 per cent.

ONE analysis shows the likely impact of the UK Government aid cut decision in February 2025

There are 2,968 billionaires in the world, and 1,346 live in G7 countries (45 per cent).