Humanitarian Emergency Fund: annual report 2025-2026

Section E: Looking ahead

The HEF Review^[13]

In 2025, following significant global aid cuts across the sector and governments, the Scottish Government commissioned an independent and external review of their existing humanitarian spending and funding streams, one of which is the HEF mechanism. All HEF Panel members and the DEC were interviewed and consulted as part of the process. Feedback and reflections were incorporated into the report. An external review of the HEF mechanism was undertaken in 2019 by the Cora Foundation; the 2025 review incorporated and built on these findings.

The recommendations from the review and the summarised Scottish Government’s responses^[14] are as follows:

Recommendation 1:

Review the level of humanitarian funding with a view to increasing the proportion of the International Development budget spend on humanitarian to at least 20% of overseas development aid.

Scottish Government response:

We note the importance of a defined budget and accept the recommendation of the report to increase the proportion of our ODA that is dedicated to humanitarian responses but cannot confirm a percentage figure at this stage. This increase of our humanitarian budget as a proportion of our ODA spend will take place in a phased manner aligned with an overall increase in ODA budgets.

Recommendation 2.1:

Invest in pooled funds: recommendation to contribute to Disasters Emergency Committee appeals

Scottish Government response:

The Scottish Government values the work of the DEC and its members in mobilising funding for response to large-scale disasters and providing a coordinated response across the UK. We therefore intend to continue supporting DEC appeals as they arise and will maintain a dedicated budget within our overall budget for humanitarian response for ongoing contributions to DEC appeals.

Recommendation 2.2:

Invest in pooled funds: recommendation to investigate and carry out a comparative analysis on potential impacts of investing in DEC or START network on an ongoing basis with a view to making an informed decision in future on which channel best aligns with Scottish Government needs.

Scottish Government response:

We are currently evaluating which pooled funds provide the best opportunities to effectively deliver humanitarian funding in line with our objectives and Principles. In March 2026 we have made an initial £200,000 contribution to the Global Start Fund. At the same time as contributing to thematic pooled funds, we also intend to continue to contribute to DEC appeals.

Recommendation 3:

Consider the launch of HEF 2.0 – a simplified mechanism which is less transaction heavy and for the Scottish Government to have direct line of sight of fund, and/or further consideration of other models in consultation with key stakeholders.

Scottish Government response:

We do not consider that this would be achievable in the way described in the Review without a similar level of administration and resource to the current model. However, we intend to explore alternative options for a model of delivery of Scottish Government humanitarian funding that would complement our contribution to pooled funds and the DEC, to be implemented in the 2027-2028 financial year.

Recommendation 4:

Invest in a global south pooled fund - carry out due diligence and invest in NEAR Change fund

Scottish Government response:

We consider pooled funds to be an effective way to deliver our humanitarian funding. We are also mindful that that investing in emerging global south-based pooled funds would align well with our commitment on shifting / equalising power to the global south. There are a number of such pooled funds that support our international development and FAIR objectives, and we will review these options with a view to investing in a humanitarian pooled fund that specifically furthers our international development Principles, including our commitments on shifting/equalising power.

Recommendation 5:

Establish an independent humanitarian advisory body to consult with on humanitarian crises and action.

Scottish Government response:

We intend to consider the options available for either establishing a new panel, leveraging existing Scottish Government mechanisms or engaging with existing groups that provide international expertise.

Next Steps

Looking ahead, the humanitarian sector faces a defining period of pressure and transformation as global funding cuts collide with rising needs driven by conflict, climate shocks, displacement and economic instability.

In the context of the ongoing ‘humanitarian reset^[15]’, there is growing recognition that the system must move beyond internationally led, short-term delivery models and fundamentally rethink how power, resources and decision-making are shared. This includes accelerating the shift towards locally led responses and pooled funding mechanisms that place greater trust and investment in national and local actors, particularly in the Global South, who are often best positioned to deliver sustainable and context-driven humanitarian action.

At the same time, the sector must strengthen equitable and quality partnerships, while embedding gender-informed approaches that recognise the disproportionate impact crises have on women, girls and marginalised groups.

With resources becoming increasingly constrained, there is an urgent need to prioritise underfunded and overlooked crises that receive limited political or media attention, ensuring humanitarian response remains principled, inclusive and accountable to affected communities.