Although it adds up to less than a penny in every pound, the UK Government, along with the other G8 nations, had been dragging its heels on an aid promise made in 1970. A catalyst was needed that would convince decision-makers to act.
With the UK hosting the G8 summit in 2013, Oxfam supporters in their thousands rallied with other charities under the IF campaign to call on their MPs and the Government to lead by example and send a clear message to other rich countries that, even in tough times, the UK will not turn its back on the world's poorest people.
This agreement to increase aid represents a real chance to bring about change on a massive scale - it will mean fewer families going hungry, more children in schools, more trained nurses, and more clean water. Whole communities will have a brighter future as a result.
Effinesi Bilita from Malawi is living proof that a little lift goes a very long way. Thanks to Oxfam, she's now getting the support she needs - the seeds, tools and training - to grow more and earn more, lifting not only her life, but her children's lives too.
"Farming is very important for illiterate people like me who cannot get a good job. With farming you really benefit when you have a little support. It means you are able to harvest enough for your family and have something left to sell. With the money I earn, I'm determined to pay for all my children to go to school so they aren't illiterate like me."
And when you help one person, they will lift others. As well as investing in her children's future, Effinesi will help lift her whole community as she shares her new-found expertise and resources with her neighbours.
This increase in aid will change the lives of millions more families like Effinesi's around the world.