DFID is increasingly making use of Payment by Results, where payments are linked to the delivery of pre-agreed results. For example, DFID are pioneers in Results Based Aid, where partner governments are paid on results such as increases in the number of children who complete education.
As the number of programmes grows, DFID needs a consistent approach and a clear way forward. This strategy sets out the Department's objectives for the use of Payment by Results and the actions they will take to achieve them.
These actions include:
- doing Payment by Results in new ways
- programmes in new and priority sectors
- strengthened support for evaluation of PbR Projects, so that DFID can build the evidence base on how Payment by Results works best
- ensuring DFID's management and funding systems are suited to Payment by Results
- supporting DFID staff and partners to do Payment by Results well