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Guidance for DFID country offices on measuring and maximising value for money in cash transfer programmes

2011 — By Anthony Hodges,Philip White and Matthew Greenslade

This note responds to demand from DFID country offices for guidance on measuring and maximising value for money (VfM) in supporting cash transfer programmes, and reflects the post-election emphasis in DFID on “making every penny count” and the need for consistency of approaches and metrics across DFID country offices. A particular gap to fill is systematic assessment of the cost-effectiveness of design options in DFID supported cash transfer programmes.

This guidance is in two linked parts:

1. Part 1 provides a toolkit which sets out key concepts and metrics for analysing value for money (VfM) in cash transfer programmes. This gives an overview of the steps
required, and may be enough for those managing others carrying out VfM analysis.

2. Part 2 comprises explanatory text, providing more detailed guidance on the issues, concepts and approaches used for VfM analysis of cash transfers, as well as a range of examples. Part 2 needs to be read and understood by those carrying out the analysis.