A Public Affairs Unit was established in the Communications Division in 1974 to develop links with government and professional bodies and to research subjects relevant to the programme. In 1992 it was brought into the Overseas Division as part of a move to create a corporate policy unit with a remit to lobby for policy change on issues affecting poverty and development. This new Public Policy Department also encompassed the work of the Overseas Division's Development Policy Unit.

Following restructuring in 1993 and the addition of a Gender and Learning Team (previously the Gender and Development Unit), a Programme Development Team, and a Publications Team, the Public Policy Department was renamed the Policy Department. Strategic Planning and Evaluation staff were brought into the Policy Department in 2000, a Programme Policy Team was created, and the Department was incorporated into a new Campaigns and Policy Division.