Policy paper

DFID's Strategy for Payment by Results: Sharpening incentives to perform

This publication was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This strategy sets out a consistent approach for DFID’s work on Payment by Results, identifying objectives and actions to achieve them.


DFID is increasingly making use of Payment by Results, where payments are linked to the delivery of pre-agreed results. For example, we 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 our objectives for the use of Payment by Results and the actions we 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 we can build the evidence base on how Payment by Results works best
  • ensuring our management and funding systems are suited to Payment by Results
  • supporting DFID staff and partners to do Payment by Results well