£6.85m foreign aid scheme accused of ‘funnelling aid to firms’

New £6.85million foreign aid scheme to help workers supplying UK chains like M&S and Primark is accused of ‘funnelling aid into the pockets of wealthy firms’

  • Scheme promises to help workers in poorer countries during the pandemic
  • But critics say it uses taxpayer money to ‘pick up the bill’ for rich corporations
  • Others who will benefit include Sainsbury’s, Tesco, Morrisons, Co-op, Waitrose

A new £6.85million foreign aid scheme to help workers supplying UK chains like M&S and Primark has been accused of funnelling aid into the pockets of wealthy firms.

Announced by the Government on Thursday, it promises to benefit British consumers by supplying ‘affordable, high quality goods from around the world.’

But critics say the scheme helps suppliers to UK high streets by using taxpayer money to ‘pick up the bill.’

International development secretary Anne-Marie Trevelyan said: ‘This new fund will strengthen vital supply chains for UK consumers, while supporting some of the most vulnerable workers in developing countries. It will make a real difference to people in the UK and abroad.’

Operating with charities including Care UK, the Fairtrade Foundation and Ethical Trade Initiative, it will focus on workers living in in Myanmar, Bangladesh, Kenya, Uganda, Ethiopia, Tanzania, Rwanda and Ghana (pictured: a textile worker in Dhaka)

The Government will contribute £4.85million to the scheme which has been devised to ‘support workers in developing countries during the coronavirus pandemic and help keep some of the UK’s favourite products on high street shelves.’

Operating with charities including Care UK, the Fairtrade Foundation and Ethical Trade Initiative, it will focus on workers living in Myanmar, Bangladesh, Kenya, Uganda, Ethiopia, Tanzania, Rwanda and Ghana.

Retailers who will benefit include M&S, Primark, Sainsbury’s, Tesco, Morrisons, Co-op and Waitrose. 

But the Government’s plan was described as a ‘disgrace’ by Labour MP Kate Osamor who sits on the Commons International Development Committee.

Ms Osamor told The Guardian: ‘It is a disgrace that the government is funnelling the aid budget into the pockets of wealthy businesses like Morrisons and Primark at the same time as it cuts poverty reduction programmes in some of the poorest countries on Earth.’

She added that it is incumbent on British corporations to ensure that suppliers maintain adequate working conditions for employees.

‘[These companies] make hundreds of millions in profit each year; the UK taxpayer should not be picking up the bill when they finally decide it’s time to improve conditions for their workforce.’ Ms Osamor said.

The Department for International Development said that M&S and Care will work together to provide health services for 80,000 textile workers in Bangladesh.

Retailers who will benefit include M&S, Primark, Sainsbury's, Tesco, Morrisons, Co-op and Waitrose

Retailers who will benefit include M&S, Primark, Sainsbury’s, Tesco, Morrisons, Co-op and Waitrose

‘This is expected to have knock-on benefits for a further 300,000 people in Bangladesh’s poorest communities,’ DfID said in its press release. 

Labour MP Kate Osamor, a member of the Commons International Development Committee, said: ‘It is a disgrace that the Government is funnelling the aid budget into the pockets of wealthy businesses.’

A DfID spokesman said: ‘UK aid is not going to British businesses. DfID’s grant funding is providing support to workers and farmers through civil society partners that are working with businesses and their supply chain.’ 

Fiona Sadler, head of ethical trading for M&S, said: ‘At M&S we have a robust approach to ethical fashion – we know we’re only as strong as the communities where we operate and we’re committed to helping improve the lives of workers in our supply chain through collaborative initiatives.’