OXFAM has agreed not to bid for more taxpayer cash, the international development secretary has said.

Penny Mordaunt added that the Government would take ‘whatever decisions about past or future funding’ it deems necessary.

The statement followed Oxfam's response to a set of demands issued by Ms Mordaunt on Monday in the wake of the scandal that has seen Oxfam accused of covering-up claims that staff used prostitutes while delivering aid to disaster-stricken Haiti in 2011.

Ms Mordaunt said: "I made three demands: that they make clear how they will handle any forthcoming allegations around safeguarding - historic or live; that they report staff members involved in this incident to their respective national governments; and that they fully co-operate with the Haitian authorities, including handing over all evidence they hold. Oxfam has now confirmed that they have complied with all of these points.

"Following our discussions, Oxfam has agreed to withdraw from bidding for any new UK Government funding until Department for International Development is satisfied that they can meet the high standards we expect of our partners."