Government Digital Strategy Implementation

The Department has been slow to develop the capacity and capability it needs to deliver such a complex programme. The Department’s central programme team for the New Hospital Programme will require significant technical expertise to deliver successfully. Prior to the 2025 reset, the programme had struggled to recruit staff and had become reliant on external contractors. By November 2025, the programme team was still struggling with a vacancy rate of 39% due to an ongoing recruitment freeze in...

The Department has been slow to develop the capacity and capability it needs to deliver such a complex programme. The Department’s central programme team for the New Hospital Programme will require significant technical expertise to deliver successfully. Prior to the …

The Department told us that while there had been a slight pause in recruitment, the programme was not currently under a recruitment freeze for key roles and it did not currently see resourcing as a concern.55 We challenged the Department on this, highlighting that the impact of public sector vacancies on deliverability was rated red on the programme’s risk register as at November 2025. The Department said that the programme had subsequently been on a recruitment drive, specifically looking at...

The Department told us that while there had been a slight pause in recruitment, the programme was not currently under a recruitment freeze for key roles and it did not currently see resourcing as a concern.55 We challenged the Department …

We are concerned that government has not built the digital capability or senior digital leadership it needs to achieve change and bring fraud savings from data analytics. Digital transformation will require strong leadership. The government accepted the previous Committee’s September 2023 recommendation that all departments should have a non-executive director with relevant digital, data and technology transformation expertise on their Boards. While DSIT assured us that this is now the case a...

We are concerned that government has not built the digital capability or senior digital leadership it needs to achieve change and bring fraud savings from data analytics. Digital transformation will require strong leadership. The government accepted the previous Committee’s September …

The previous Committee recommended in September 2023 that all Departments should appoint at least one non-executive director with relevant digital, data and technology transformation expertise to their Board.22 This recommendation is reflected in the Government’s new Roadmap for modern digital government, which sets an expectation that by December 2026 “Central and local government will be expected to have a digital leader on their executive committee and a digital non- executive director on ...

The previous Committee recommended in September 2023 that all Departments should appoint at least one non-executive director with relevant digital, data and technology transformation expertise to their Board.22 This recommendation is reflected in the Government’s new Roadmap for modern digital …

The Cabinet Office told us in March 2025 that, to achieve annual savings of up to £500 million by reducing the need for digital consultants, it was aiming for 10% of civil servants to have digital expertise.25 Only 5.5% of the civil service met this criteria in April 2025, though DSIT told us that some government departments had already met this 10% target and that others are progressing towards it.26 It also told us that while there are schemes, such as apprenticeships, aimed at developing g...

The Cabinet Office told us in March 2025 that, to achieve annual savings of up to £500 million by reducing the need for digital consultants, it was aiming for 10% of civil servants to have digital expertise.25 Only 5.5% of …

As confirmed in January 2025’s Blueprint for modern digital government policy paper, cross-government digital leadership now resides with DSIT.32 The blueprint included a plan to raise the status of the Government Chief Digital Officer to second permanent secretary-level. DSIT told us that it has now replaced the Government Chief Digital Officer, who was responsible for all the digital work within the GDS, with two new directors general posts. One of these is the director-general for digital ...

As confirmed in January 2025’s Blueprint for modern digital government policy paper, cross-government digital leadership now resides with DSIT.32 The blueprint included a plan to raise the status of the Government Chief Digital Officer to second permanent secretary-level. DSIT told …

The Cabinet Office and DSIT have many expectations for the Digital Commercial Centre of Excellence to deliver the large–scale improvements needed to current digital commercial activities, as well as its existing aims. Government’s current digital commercial approaches and practices require improvement in a range of areas, including creating a clear sourcing strategy setting out what government wants and how it will procure it. Yet government does not have sufficient skills to manage the depth...

The Cabinet Office and DSIT have many expectations for the Digital Commercial Centre of Excellence to deliver the large–scale improvements needed to current digital commercial activities, as well as its existing aims. Government’s current digital commercial approaches and practices require …

Cabinet Office and DSIT’s approach to preparing for the opportunities and risks presented by new technologies is not yet being developed alongside addressing more immediate digital procurement challenges. Government faces uncertain but profound technological changes, particularly around artificial intelligence, and rapidly needs to develop the skills to deliver the next generation of programmes for digitally enabled change and the significant task of replacing legacy IT systems 4 with modern ...

Cabinet Office and DSIT’s approach to preparing for the opportunities and risks presented by new technologies is not yet being developed alongside addressing more immediate digital procurement challenges. Government faces uncertain but profound technological changes, particularly around artificial i

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and the Department for Science, Innovation and Technology (DSIT) on government’s relationship with technology suppliers.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and the Department for Science, Innovation and Technology (DSIT) on government’s relationship with technology suppliers.1 Type: conclusion | Number: 1 | …

We therefore asked how government was keeping up with the pace of change in technology markets, and when we could expect a coherent strategy in response. DSIT recognised that there was currently a gap between the market in which it was operating and its approach and committed to publishing a sourcing strategy. DSIT similarly recognised that the technology market had shifted, and that sourcing in digital was “probably more complicated than it used to be”. It told us that it would need strategi...

We therefore asked how government was keeping up with the pace of change in technology markets, and when we could expect a coherent strategy in response. DSIT recognised that there was currently a gap between the market in which it …

During our evidence session, the Cabinet Office and DSIT identified a range of other areas that they expected the new Centre of Excellence to contribute to. For example, the GCF recognised that it needed to do “a lot more” to refresh the digital, data and technology playbook, which it would do through the Centre of Excellence. DSIT told us that one of its priorities for the Centre was to jointly produce a clear digital sourcing strategy to steer Departments on when it makes sense to build thi...

During our evidence session, the Cabinet Office and DSIT identified a range of other areas that they expected the new Centre of Excellence to contribute to. For example, the GCF recognised that it needed to do “a lot more” to …

The government has published a ‘Digital, data and technology playbook’, which sets out key policies and guidance for how digital projects are assessed, procured and delivered.33 We asked whether this would be the primary tool for driving some of the change that was needed. DSIT described the purpose of the playbook as “how do we buy well and manage well” 28 Qq 69–71 29 Qq 7, 51 30 Q 48 31 Qq 49–50 32 Letter from the Cabinet Office, 13 March 2025 33 Cabinet Office, The Digital, Data and Techno...

The government has published a ‘Digital, data and technology playbook’, which sets out key policies and guidance for how digital projects are assessed, procured and delivered.33 We asked whether this would be the primary tool for driving some of the …

The GCF accepted that the playbook needed to be enhanced and improved, and said that in doing so it would involve GDS. It explained that its aim was to ensure that the playbook was “really fit for purpose”, in terms of where government wanted to move forward in the digital landscape.36 GDS agreed that there were some areas that it would like to emphasise more, including: ensuring that there would be clear guidance on joint commercial and digital leadership for procurements; and describing how...

The GCF accepted that the playbook needed to be enhanced and improved, and said that in doing so it would involve GDS. It explained that its aim was to ensure that the playbook was “really fit for purpose”, in terms …

We asked the Cabinet Office the extent to which it felt that government was “moving from a basic digital world to an evolved digital world” and whether addressing issues with digital procurement, at the speed needed, could help this transition. The Cabinet Office agreed that “procurement and commercial teams can be a catalyst in the change that we have to make”. It accepted that it needed to both recruit some different skills, and to “step up the skills and the training programmes that we hav...

We asked the Cabinet Office the extent to which it felt that government was “moving from a basic digital world to an evolved digital world” and whether addressing issues with digital procurement, at the speed needed, could help this transition. …

We observed that our predecessor Committee saw examples where departments made mistakes in designing and procuring digital programmes, particularly where legacy technology was involved. We were concerned that some larger departments are better served with digital skills than some of the smaller ones, but that even in large departments this expertise is not always utilised. We asked whether there would be a set of commercial people with digital skills in every department. The Cabinet Office to...

We observed that our predecessor Committee saw examples where departments made mistakes in designing and procuring digital programmes, particularly where legacy technology was involved. We were concerned that some larger departments are better served with digital skills than some of …

We challenged the Cabinet Office on whether its plans were realistic. The Cabinet Office told us it had accepted the NAO’s recommendation that it needed a cross–Government implementation plan and a stronger monitoring and evaluation framework.75 It said these would be ready in the summer of 2025, after the Spending Review concluded.76 We asked the Cabinet Office how it knew which were the right issues to focus on if it lacked oversight of departments’ activities. The Cabinet Office clarified ...

We challenged the Cabinet Office on whether its plans were realistic. The Cabinet Office told us it had accepted the NAO’s recommendation that it needed a cross–Government implementation plan and a stronger monitoring and evaluation framework.75 It said these would …

In our recent report on the use of AI in government we said: Artificial intelligence has the potential to transform public services by automating routine tasks, making public services quicker and more efficient, and making better use of government data to target support at those that need it. ….. Achieving large–scale benefits will require not only adoption of new technology but significant change in business practices, and will be dependent on government putting in place the right foundation...

In our recent report on the use of AI in government we said: Artificial intelligence has the potential to transform public services by automating routine tasks, making public services quicker and more efficient, and making better use of government data …

We therefore asked the Department what it would have done differently if it had to set up a similar loan scheme again. It told us that it had tried to build in lessons learned as it went through the process. For example, it had been optimistic about the number of staff and the capability it required to manage the loans. It had since, therefore, increased significantly the resources in its loan team, with recruitment almost complete by July 2024, and had embedded in this team digital, data and...

We therefore asked the Department what it would have done differently if it had to set up a similar loan scheme again. It told us that it had tried to build in lessons learned as it went through the process. …

During 2020, the Department had appointed two of its arm’s–length bodies, Arts Council England and Sport England, as its loan agents for the day–to–day monitoring and management of the loans, including relationships with borrowers. However, both Arts Council England and Sport England were new to loan management on this scale and were initially short on loan–specific expertise, such as knowledge of loan restructuring and the use of digital technology to identify problem cases.8 The Department ...

During 2020, the Department had appointed two of its arm’s–length bodies, Arts Council England and Sport England, as its loan agents for the day–to–day monitoring and management of the loans, including relationships with borrowers. However, both Arts Council England and …

The Department did not employ a specialist loan management company. It told us that it adopted a hybrid approach, with separate loan agents for culture and sport and a managed service provider, to the management of its loan book in line with a recommendation from PwC.10 The Department also said that the insights its loan agents had on those bodies in receipt of a loan had been invaluable in helping it to understand the borrowers,11 and that the range of professional services available from Pw...

The Department did not employ a specialist loan management company. It told us that it adopted a hybrid approach, with separate loan agents for culture and sport and a managed service provider, to the management of its loan book in …

The Department originally commissioned PwC in 2022 to assess the different options for the long–term management of its loan book. In line with PwC’s advice, the Department decided to retain management of the loan book in–house, with day–to–day management through the loan agents, supplemented by appointing a managed service provider.15 7 Qq 3–7, 13, 21, 52, 83; C&AG’s Report, paras 11, 2.2 and 2.10 8 C&AG’s Report, paras 3, 9, 1.15 and 2.3 9 Qq 54, 55, 60; C&AG’s Report, paras 10 and 1.16 10 Q...

The Department originally commissioned PwC in 2022 to assess the different options for the long–term management of its loan book. In line with PwC’s advice, the Department decided to retain management of the loan book in–house, with day–to–day management through …

We observed that the above arrangements appeared favourable to PwC and that it was not unheard of for government to appoint consultants to implement the advice they have given and for the scope of such implementation work, and therefore its costs, to increase subsequently. The Department pointed out that it had originally appointed PwC as the managed service provider after an open procurement which PwC had won after meeting the required criteria.19 It, not PwC, had then increased the scope of...

We observed that the above arrangements appeared favourable to PwC and that it was not unheard of for government to appoint consultants to implement the advice they have given and for the scope of such implementation work, and therefore its …

Public trust is being jeopardised by slow progress on embedding transparency and establishing robust standards for AI adoption in the public sector. Public confidence that the AI technology used by government is fair, accurate, secure and safe is key to successful adoption. Transparency is fundamental to building that trust but as at January 2025, only 33 records had been published on the government website set up to provide greater transparency on algorithm–assisted decision making in the pu...

Public trust is being jeopardised by slow progress on embedding transparency and establishing robust standards for AI adoption in the public sector. Public confidence that the AI technology used by government is fair, accurate, secure and safe is key to …

There are persistent digital skills shortages in the public sector and DSIT’s plans to address the skills gap may not be enough. 70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption. In 2024, around 50% of roles advertised in civil service digital and data campaigns were unfilled. In January 2025, the government’s State of digital government review set out the skills challenge faced by gove...

There are persistent digital skills shortages in the public sector and DSIT’s plans to address the skills gap may not be enough. 70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI …

DSIT has no systematic mechanism for bringing together learning from pilots and there are few examples of successful at–scale adoption across government. At the time of the NAO report (March 2024), levels of AI use in government were low, but 70% of surveyed government bodies were piloting or planning AI tools. Examples of pilot activity include use of AI to analyse digital images to identify and classify objects, use of natural language processing to summarise or draft text, and use of AI to...

DSIT has no systematic mechanism for bringing together learning from pilots and there are few examples of successful at–scale adoption across government. At the time of the NAO report (March 2024), levels of AI use in government were low, but …

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (DSIT) and the Cabinet Office on the use of artificial intelligence (AI) in government.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (DSIT) and the Cabinet Office on the use of artificial intelligence (AI) in government.1 Type: conclusion | …

A blueprint for modern digital government sets out government’s intention to identify remediation funding for legacy technology. DSIT told us the new Government Digital Service will work with HM Treasury to review all spending review bids for legacy remediation to assess their credibility and ambition, while also tracking the allocated money which in the past had too often been reallocated elsewhere.14 It also intends to pilot funding on a continuous improvement basis to ensure that IT system...

A blueprint for modern digital government sets out government’s intention to identify remediation funding for legacy technology. DSIT told us the new Government Digital Service will work with HM Treasury to review all spending review bids for legacy remediation to …

We challenged DSIT on what it was doing to address barriers to data sharing in government and it told us a change in culture is needed and government bodies need to think about the collective interest of the public when assessing the risks of data–sharing.20 A blueprint for modern digital government sets out government’s intention to work to reduce the barriers to sharing data by implementing standards, frameworks and tools. As set out in the blueprint, DSIT also told us it plans to create a ...

We challenged DSIT on what it was doing to address barriers to data sharing in government and it told us a change in culture is needed and government bodies need to think about the collective interest of the public when …

The Algorithmic Transparency Recording Standard (ATRS), is intended to support public sector bodies to improve transparency and provide information about the algorithmic tools they are using, but the NAO found it was not widely used.27 We challenged DSIT on this lack of transparency as, at January 2025, only 33 records had been published on the ATRS website. 20 Q 38 21 Q 37; DSIT, A blueprint for modern digital government, January 2025, p 20 22 Q 39 23 C&AG’s Report, figure 10 24 UAIG0012, UA...

The Algorithmic Transparency Recording Standard (ATRS), is intended to support public sector bodies to improve transparency and provide information about the algorithmic tools they are using, but the NAO found it was not widely used.27 We challenged DSIT on this …

We asked DSIT for reassurances that there would be sufficient transparency and mechanisms for citizens to challenge AI assisted decisions. It told us that there were provisions in the Data (Use and Access) Bill to allow for redress and challenge in cases of automated decision–making. It also acknowledged that it had more to do to communicate effectively with the public and to be “demonstrably trustworthy” and this was an important area of focus for it in the coming years.29 Actions it told us...

We asked DSIT for reassurances that there would be sufficient transparency and mechanisms for citizens to challenge AI assisted decisions. It told us that there were provisions in the Data (Use and Access) Bill to allow for redress and challenge …

70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption.31 In January 2025, the government’s State of digital government review set out the digital and data skills challenge faced by government, reporting difficulties in recruitment (around 50% of roles advertised in civil service digital and data campaigns in 2024 were unfilled), pay levels that were uncompetitive with the private sector, suc...

70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption.31 In January 2025, the government’s State of digital government review set out the digital and …

The digital and data skills gap in government is long–standing and this committee has raised concerns about this issue in the past.35 We challenged the Cabinet Office and DSIT on how they were tackling the problem and they told us they need to do more to communicate the benefits of working in the public sector, including the opportunity for public service and to have an impact on people’s lives.36 They also told us they wanted to encourage the flow of people and skills between the private and...

The digital and data skills gap in government is long–standing and this committee has raised concerns about this issue in the past.35 We challenged the Cabinet Office and DSIT on how they were tackling the problem and they told us …

DSIT’s A blueprint for modern digital government also sets out a series of priority reforms. These include commitments to assess the optimum employment models and the competitiveness of the overall package for digital and data staff. To strengthen digital leadership, the blueprint also sets out plans to require all public sector organisations to have a digital leader on their executive committee and a digital non–executive director on their board by 2026.39 DSIT told us that chief digital inf...

DSIT’s A blueprint for modern digital government also sets out a series of priority reforms. These include commitments to assess the optimum employment models and the competitiveness of the overall package for digital and data staff. To strengthen digital leadership, …

We questioned DSIT on how it is evaluating and sharing learning from AI pilot activity across government to avoid reinventing the wheel and to support AI adoption at scale. It told us that it was taking a range of approaches including developing guidance and identifying good practice case studies, establishing communities of AI practitioners, and adopting an ‘open build’ approach to developing AI tools, publishing their results to make them available to others in the public and private sector...

We questioned DSIT on how it is evaluating and sharing learning from AI pilot activity across government to avoid reinventing the wheel and to support AI adoption at scale. It told us that it was taking a range of approaches …

The State of digital government review reported that government is not doing enough to ensure the public sector benefits from the scale of its buying power.56 The Cabinet Office and DSIT told us they are working to tackle this, giving as an example a recent agreement reached with 48 Q 15 49 Q 41 50 Q 29 51 DSIT, State of digital government review, January 2025, pp 34–35 52 UAIG0014, UAIG0028, UAIG0033, UAIG0034, UAIG0036 53 UAIG0031, UAIG0034 54 Qq 8, 22 55 Q 9 56 DSIT, State of digital gover...

The State of digital government review reported that government is not doing enough to ensure the public sector benefits from the scale of its buying power.56 The Cabinet Office and DSIT told us they are working to tackle this, giving …

At the time of the NAO report, responsibility for AI in government was split across the Cabinet Office—which was primarily responsible for AI adoption in the public sector, through CDDO, i.AI and the Government Digital Service (GDS)—and DSIT, which held responsibility for wider AI policy. The NAO concluded that limited integration of governance between these respective programmes increased risks to delivery and to the benefits of a coordinated approach.60 The NAO also reported that the then–d...

At the time of the NAO report, responsibility for AI in government was split across the Cabinet Office—which was primarily responsible for AI adoption in the public sector, through CDDO, i.AI and the Government Digital Service (GDS)—and DSIT, which held …

The Departments told us that the departmental moves had been supported by a new digital inter–ministerial group (IMG) which provides greater focus and links the work with wider cross–government work on public service reform and the government’s missions.66 DSIT emphasised that this was about “about having multiple members of the Cabinet really focused on the change agenda for Government on digital services” and “a very significant step up in ministerial engagement on the digital transformatio...

The Departments told us that the departmental moves had been supported by a new digital inter–ministerial group (IMG) which provides greater focus and links the work with wider cross–government work on public service reform and the government’s missions.66 DSIT emphasised …

We challenged DSIT and the Cabinet Office on the scale of the challenge and whether the public sector would be able to grasp the opportunities offered by AI. DSIT told us that it had to be self–critical about digital leadership across government, observing that digital leaders are not well represented at executive level across the public sector and many public sector leaders do not have enough technical expertise or training.70 As part of its blueprint for modern digital government, it will r...

We challenged DSIT and the Cabinet Office on the scale of the challenge and whether the public sector would be able to grasp the opportunities offered by AI. DSIT told us that it had to be self–critical about digital leadership …

The Public Accounts Committee has repeatedly raised concerns over whether the Department and HS2 Ltd have had the necessary skills and capability to deliver HS2 successfully. In 2020 the previous Committee cautioned that it was not yet convinced that the Department and HS2 Ltd had the skills and capability they needed either then, now or in the future.46 “In 2013 and 2016, previous Public Accounts Committees identified the challenges the Department has faced in securing the skills it needs fo...

The Public Accounts Committee has repeatedly raised concerns over whether the Department and HS2 Ltd have had the necessary skills and capability to deliver HS2 successfully. In 2020 the previous Committee cautioned that it was not yet convinced that the …

The Home Office failed to ensure it had sufficient capability to manage the commercial and property risks during its acquisition of the Northeye site. In 2023, the Home Office was acquiring several large asylum accommodation sites at the same time but lacked the in-house skills and capacity to effectively manage the commercial risks. Despite offers of support, including expert advice from the Ministry of Justice’s property team, the Home Office chose not to use these options. It brought in co...

The Home Office failed to ensure it had sufficient capability to manage the commercial and property risks during its acquisition of the Northeye site. In 2023, the Home Office was acquiring several large asylum accommodation sites at the same time …

Realising the benefits of service modernisation will require strong leadership to embed cultural change within DWP and its outsourced providers. DWP’s Service Modernisation Programme is an 11–year organisation-wide programme estimated to cost £312.1 million, running from 2022–23 to 2032–33, which is seeking to deliver benefits for customers, staff and taxpayers. However, the scale and complexity of the programme means delivery involves significant risk. Strong leadership is needed to make the...

Realising the benefits of service modernisation will require strong leadership to embed cultural change within DWP and its outsourced providers. DWP’s Service Modernisation Programme is an 11–year organisation-wide programme estimated to cost £312.1 million, running from 2022–23 to 2032–33, which …

DWP acknowledged that cultural change can be the hardest part of any transformation programme. It told us that this requires leadership to help people understand the change that is coming, why the change is a good 35 Qq 19-20 36 C&AG’s Report (customer service), paras 2.2, 2.3 37 Q 25 38 C&AG’s Report (customer service), paras 3.10, 3.11 39 C&AG’s Report (customer service), para 3.17 40 Q 30 12 thing and how they have a part to play in making the change. DWP said it took comfort from its wide...

DWP acknowledged that cultural change can be the hardest part of any transformation programme. It told us that this requires leadership to help people understand the change that is coming, why the change is a good 35 Qq 19-20 36 …

DWP said that missing its savings target was not a cause for concern, describing it as “a blip” caused by a change in its approach to implementing the Targeted Case Reviews due to wider pressures in the Department. In 2023–24, it had realised that it could not recruit the staff needed for Targeted Case Reviews alongside the extra work coaches and other staff required to administer the growth in benefits. It therefore decided to use a contracted route and had to divert some resources away from...

DWP said that missing its savings target was not a cause for concern, describing it as “a blip” caused by a change in its approach to implementing the Targeted Case Reviews due to wider pressures in the Department. In 2023–24, …

We challenged NHSE on what it would do differently to achieve the ambitious annual productivity improvements it has committed to. NHSE told us annual productivity improvements were currently running at about 1.8% and it was confident that the annual gains that it has committed to of 2.0% could be achieved over the next two years. It contends that the previous two years had been affected by ongoing disruptions such as industrial action, and that further recovery was still possible, particularl...

We challenged NHSE on what it would do differently to achieve the ambitious annual productivity improvements it has committed to. NHSE told us annual productivity improvements were currently running at about 1.8% and it was confident that the annual gains …

We asked what was being done to improve productivity through the use of new technologies. NHSE told us the NHS currently lacks a consistent data infrastructure and that NHS providers varied in terms of their levels of technological maturity.50 NHSE said that it was putting modern technology into some of its providers that “have lived on paper”. While it still had work to do to complete the programme, its aim was to do so over the next 18 months.51 NHSE told us that the NHS providers that have...

We asked what was being done to improve productivity through the use of new technologies. NHSE told us the NHS currently lacks a consistent data infrastructure and that NHS providers varied in terms of their levels of technological maturity.50 NHSE …

i.AI should undertake an assessment of the existing civil service workforce’s AI capability, identify areas of the public sector that would benefit the most from the use of AI and where value for money can be delivered, set out how potential risks associated with its use should be mitigated, and publish a detailed AI public sector action plan. Progress against these should be reported to Parliament on an annual basis and through regular written or oral statements by Ministers.

i.AI should undertake an assessment of the existing civil service workforce’s AI capability, identify areas of the public sector that would benefit the most from the use of AI and where value for money can be delivered, set out how …

Cabinet Office’s information on concerns and arrangements across the civil service has improved but it still has several quality limitations. For example, there is no method for capturing outcomes for concerns that are ‘ongoing’ at the point of an annual data collection and no structured data on what the process is like from the whistleblowers’ perspective.10 The Cabinet Office told us that the next time it collects data, it will pick up cases that were outstanding at the previous data collec...

Cabinet Office’s information on concerns and arrangements across the civil service has improved but it still has several quality limitations. For example, there is no method for capturing outcomes for concerns that are ‘ongoing’ at the point of an annual …

The National Audit Office found that just 52% of people ‘think it is safe to challenge the way things are done’, from their review of responses to the 2022 Civil Service People Survey. The equivalent figure for the NHS was 61.5%.29 The Cabinet Office told us it has improved over the recent People Surveys, but it needs to work on increasing this percentage as its not where it wants it to be. The Cabinet Office highlighted that it can support departments with the right tools to improve their ‘s...

The National Audit Office found that just 52% of people ‘think it is safe to challenge the way things are done’, from their review of responses to the 2022 Civil Service People Survey. The equivalent figure for the NHS was …

Digital devices provided to schools by the Government must be maintained and kept secure through regular renewals and software updates. The Department for Education must set out a funding and renewal strategy for device management alongside a strategy for disposing of digital hardware that is no longer fit for purpose within the first year of the new Parliament. (Paragraph 136) 52 Screen time: impacts on education and wellbeing

Digital devices provided to schools by the Government must be maintained and kept secure through regular renewals and software updates. The Department for Education must set out a funding and renewal strategy for device management alongside a strategy for disposing …

The IPA’s plans to improve the quality of government’s cost estimates of major projects have taken too long to implement. We have examined many projects Delivering value from government investment in major projects 7 where early cost estimates have proved to bear little resemblance to what a project will ultimately cost, and there is optimism bias in nearly every project we look at. Funding packages are often agreed, and projects approved before projects have reached sufficient maturity. High...

The IPA’s plans to improve the quality of government’s cost estimates of major projects have taken too long to implement. We have examined many projects Delivering value from government investment in major projects 7 where early cost estimates have proved …

The IPA told us that there remains a lack of project management skills in the civil service and that there are particular shortages in technical and engineering skills. This lack of skills places too much reliance on the supply chain for those skills, which can place government departments in a weak position because it means departments cannot act as an intelligent client. Improving project management skills in government could also help to mitigate risks from there being shortages in the sup...

The IPA told us that there remains a lack of project management skills in the civil service and that there are particular shortages in technical and engineering skills. This lack of skills places too much reliance on the supply chain …

Lack of cost-estimation capability in government means that government is reliant on suppliers to government defining what a project will cost. The IPA told us that cost estimation is an important skill and one that government departments need to be much better at. HM Treasury told us that the challenge of estimating cost accurately for developing business cases and for spending reviews is an area that government still has not cracked and that better transparency about cost estimates can be h...

Lack of cost-estimation capability in government means that government is reliant on suppliers to government defining what a project will cost. The IPA told us that cost estimation is an important skill and one that government departments need to be …

The Cabinet Office does not yet have the data it needs to oversee the appointments process effectively. Until April 2023, the Cabinet Office’s only method of collecting data about public appointments was a manual exercise, requesting data from departments once a year, in which errors and inconsistencies were common. Its new applicant tracking system, introduced in April 2023, should allow it to build up a picture of how each department is performing on appointments, including timeliness and c...

The Cabinet Office does not yet have the data it needs to oversee the appointments process effectively. Until April 2023, the Cabinet Office’s only method of collecting data about public appointments was a manual exercise, requesting data from departments once …

We are not convinced that current outreach activities are helping government to recruit the best candidates for NED roles. The Cabinet Office, the Government Lead Non-Executive, and the Commissioner for Public Appointments have all publicly declared their interest in improving outreach in order to encourage diverse and talented applicants to apply for public appointments from a wide range of sectors, including the private and voluntary sectors, as well as veterans and disabled groups. The Cab...

We are not convinced that current outreach activities are helping government to recruit the best candidates for NED roles. The Cabinet Office, the Government Lead Non-Executive, and the Commissioner for Public Appointments have all publicly declared their interest in improving …

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Government’s Lead Non-Executive, and the Chair of the Rural Payments Agency (RPA) about non-executive director appointments across government departments and public bodies.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Government’s Lead Non-Executive, and the Chair of the Rural Payments Agency (RPA) about non-executive director appointments across government departments and …

The NAO and the Commissioner for Public Appointments have noted that delays can put off candidates, leading them to withdraw their application or deterring them from applying in the first place.8 The Cabinet Office also told us that its outreach work showed that people can feel put off applying in the first place because they fear it will take too long. It said that executive search firms reported that people will take private sector posts instead of public appointments because they envisage ...

The NAO and the Commissioner for Public Appointments have noted that delays can put off candidates, leading them to withdraw their application or deterring them from applying in the first place.8 The Cabinet Office also told us that its outreach …

The Cabinet Office agreed that it is not satisfactory that the appointments process takes so long. It noted that it is a ministerial priority to speed up the process. It reported that its latest data shows the number has fallen from an average 203 days in 2022–23 to 146 days, but acknowledged that additional work is needed to bring the number down to closer to the target of 90 days.12 The Cabinet Office attributed some of the delays to ministerial turnover as well as security vetting and refe...

The Cabinet Office agreed that it is not satisfactory that the appointments process takes so long. It noted that it is a ministerial priority to speed up the process. It reported that its latest data shows the number has fallen …

Until April 2023, the Cabinet Office’s only method of collecting data about public appointments was a manual exercise once a year, so it did not hold real-time data on delays. Departments were required to provide information about all those serving in post as regulated public appointments on March 31 of the given year. Departments would also provide data on recruitment campaigns undertaken during the previous year, including information about the candidates who applied, those shortlisted, tho...

Until April 2023, the Cabinet Office’s only method of collecting data about public appointments was a manual exercise once a year, so it did not hold real-time data on delays. Departments were required to provide information about all those serving …

In April 2023, the Cabinet Office launched a new, centralised applicant-tracking system that consolidates the selection process for all regulated public appointments and some unregulated appointments. The centralised system makes it possible for the Cabinet Office to collect richer, real-time data on the appointments. The recruiting department is expected to manage the entire process through the applicant-tracking system and the system will keep detailed records of each step of the process. T...

In April 2023, the Cabinet Office launched a new, centralised applicant-tracking system that consolidates the selection process for all regulated public appointments and some unregulated appointments. The centralised system makes it possible for the Cabinet Office to collect richer, real-time …

The NAO reported that some departments were still running the process outside of the new system and entering data into the system after the fact, instead of in real time. The NAO also noted that basic errors in data entry, such as inverting dates, meant that the data generated by the new system were not accurate.16 We asked the Cabinet Office what it was doing to address these problems: it told us that it agreed that this was not satisfactory and shared our disappointment. It told us that it ...

The NAO reported that some departments were still running the process outside of the new system and entering data into the system after the fact, instead of in real time. The NAO also noted that basic errors in data entry, …

The Cabinet Office does not know how many NEDs in total are serving on all government boards, including ALBs and government companies. The Cabinet Office and the Commissioner for Public Appointments collect data on regulated public appointments. However, the available data do not differentiate between types of public appointments, so they do not show how many appointments are for NEDs. The government’s Public Appointments Data Report 2021–22 reported 4,476 chairs and members in post at regula...

The Cabinet Office does not know how many NEDs in total are serving on all government boards, including ALBs and government companies. The Cabinet Office and the Commissioner for Public Appointments collect data on regulated public appointments. However, the available …

We challenged the Cabinet Office on how it can provide effective oversight if it does not know how many NEDs there are serving on all government boards. The Cabinet Office responded that it does not recognise NEDs as a distinct category of public appointment. It told us that the vast majority of public appointments are non-executives but not all of them would be described as non-executive directors. They could, for example, be trustees, commissioners, advisers, board members, chief inspectors...

We challenged the Cabinet Office on how it can provide effective oversight if it does not know how many NEDs there are serving on all government boards. The Cabinet Office responded that it does not recognise NEDs as a distinct …

The Cabinet Office told us that it does not have a central list of how many unregulated appointments there are.20 It said that it does not currently have central oversight of any aspect on unregulated appointments and it is not mandatory for departments to put unregulated appointments on to its new applicant tracking system.21 It stated that it would imagine that as its new applicant tracking system matures departments will start to use it for unregulated appointments, noting that 127 unregul...

The Cabinet Office told us that it does not have a central list of how many unregulated appointments there are.20 It said that it does not currently have central oversight of any aspect on unregulated appointments and it is not …

We asked when the Cabinet Office will decide what information it will provide to Ministers, and to Parliament, in order to improve transparency of the appointment process. The Cabinet Office acknowledged that the system was not working perfectly yet and said that it would be introducing some enhancements.23 The Cabinet Office stated that it expected to outline a plan to Ministers on how the data should be used later this year, noting that the more confident it could be in the data the quicker...

We asked when the Cabinet Office will decide what information it will provide to Ministers, and to Parliament, in order to improve transparency of the appointment process. The Cabinet Office acknowledged that the system was not working perfectly yet and …

We questioned the witnesses about what standards of independence they would expect from NEDs, in particular how independent they should be from ministers with whom they will be working. The Cabinet Office told us that this is not set out explicitly and that it is a judgment call. It further clarified that “independence”, in this context, does not mean that they should be immune from politics, but it should be declared. The Cabinet Office told us that it relies on self-declaration. The Cabinet...

We questioned the witnesses about what standards of independence they would expect from NEDs, in particular how independent they should be from ministers with whom they will be working. The Cabinet Office told us that this is not set out …

In June 2019, the Cabinet Office launched a Public Appointments Diversity Action Plan (the Plan”) to focus on broadening access and improving the diversity and quality of appointees.31 The Plan set out ambitions for 50% of all public appointees to be female and 14% of all public appointments to come from ethnic minority backgrounds by 2022.32 The Cabinet Office did not meet these targets. Its Public Appointments Data Report for 2021–22 reported that 47% of all serving public appointees were f...

In June 2019, the Cabinet Office launched a Public Appointments Diversity Action Plan (the Plan”) to focus on broadening access and improving the diversity and quality of appointees.31 The Plan set out ambitions for 50% of all public appointees to …

We questioned the witnesses about their current approach to diversity. The Government’s Lead Non-Executive noted that he thought the only target that would make sense in the long-run would be a 50% split of gender between men and women.34 The Cabinet Office told us that currently 48% of NEDs in post are women. The Cabinet Office also told us that the most recent numbers showed 14.5% of appointments made in the year were to people identifying as from an ethnic minority, slightly below the corr...

We questioned the witnesses about their current approach to diversity. The Government’s Lead Non-Executive noted that he thought the only target that would make sense in the long-run would be a 50% split of gender between men and women.34 The …

We asked about what was done to address conscious or unconscious bias in the way jobs are advertised and described. The Cabinet Office said that the written description and criteria were vital and, indeed, served as the basis for judging who would be appointable.37 It told us that it would expect job advertisements to be scrutinised for such bias before being provided to ministers for approval but it was not a requirement or something it tracked. It also said that it should include such consi...

We asked about what was done to address conscious or unconscious bias in the way jobs are advertised and described. The Cabinet Office said that the written description and criteria were vital and, indeed, served as the basis for judging …

We asked the Cabinet Office if it monitors and publishes a breakdown of the diversity of panel members, including gender and ethnicity details. The Cabinet Office said that it does not monitor the composition of Advisory Assessment Panels. It told us that Advisory Assessment Panels are dealt with within each department. However, it told us that there may be ways in which it could monitor panel composition more effectively that it could take away to consider.42 One of the ways it could do this...

We asked the Cabinet Office if it monitors and publishes a breakdown of the diversity of panel members, including gender and ethnicity details. The Cabinet Office said that it does not monitor the composition of Advisory Assessment Panels. It told …

The Cabinet Office told us that one of its priorities is outreach, to develop a talent pool of potential applicants. The Government’s Lead Non-Executive and the Commissioner for Public Appointments have also declared their intention to improve outreach. The Cabinet Office told us that it has reached out to private-sector professionals, volunteers, veterans, disabled peoples’ forums, and faith communities.46 The Cabinet Office has also held “roadshow” events for prospective applicants, includi...

The Cabinet Office told us that one of its priorities is outreach, to develop a talent pool of potential applicants. The Government’s Lead Non-Executive and the Commissioner for Public Appointments have also declared their intention to improve outreach. The Cabinet …

We questioned the witnesses about their outreach initiatives and how success will be measured. When we asked how they measured success of “roadshow” events, the Cabinet Office told us that it tracks whether people sign up on the website and noted that 84% of attendees to the outreach events it has held so far strongly agree that they would recommend interest or involvement in the public appointments process to friends or colleagues. It told us that it was continuing to measure data against ge...

We questioned the witnesses about their outreach initiatives and how success will be measured. When we asked how they measured success of “roadshow” events, the Cabinet Office told us that it tracks whether people sign up on the website and …

The BBC’s initial lack of planning resulted in unrealistic timelines for some areas of the programme, such as moving roles and local recruitment. It took three months for it to catch up and meet its target for transferring overall expenditure outside London, achieving its target by the end of June 2023.22 We therefore asked the BBC how confident it was that it would meet its targets for the remainder of the programme. The BBC repeatedly told us that it was confident of hitting its targets for...

The BBC’s initial lack of planning resulted in unrealistic timelines for some areas of the programme, such as moving roles and local recruitment. It took three months for it to catch up and meet its target for transferring overall expenditure …

The BBC was also behind on its targets for apprentice recruitment, namely to double the number of in-house apprentices by the end of 2025, supporting 1,000 in any given year, with 80% of its apprentices outside London. By March 2023, the BBC had recruited 617 in-house apprentices, against a target of 713, with 60% outside London against a target of 80%. As part of Across the UK, the BBC was trialling a new apprenticeship model in the West Midlands with its Apprentice Hub. Through the Apprenti...

The BBC was also behind on its targets for apprentice recruitment, namely to double the number of in-house apprentices by the end of 2025, supporting 1,000 in any given year, with 80% of its apprentices outside London. By March 2023, …

It will be several years before the NHS sees the benefits from NHS Supply Chain’s efforts to improve its business. NHS Supply Chain’s main vehicle for improvement is a transformation programme which is expected to run from 2022–30. We are concerned that the risk to this transformation programme was rated red/amber in August 2023. NHS Supply Chain acknowledges the difficulties it faces in transforming its business. It told us that the seven projects it is running in 2023–24 to modernise the wa...

It will be several years before the NHS sees the benefits from NHS Supply Chain’s efforts to improve its business. NHS Supply Chain’s main vehicle for improvement is a transformation programme which is expected to run from 2022–30. We are …

NHS Trusts largely have the choice whether or not to purchase equipment and consumables through NHS Supply Chain. NHS Supply Chain must therefore gain trusts’ confidence in its services. It carries out a customer satisfaction survey to measure how satisfied customers are with its service. The survey shows that overall net customer satisfaction is in steady decline, from its peak of 67% in quarter two 2021–22 to 54% in quarter two 2023–24. NHS Supply Chain calculates overall net satisfaction b...

NHS Trusts largely have the choice whether or not to purchase equipment and consumables through NHS Supply Chain. NHS Supply Chain must therefore gain trusts’ confidence in its services. It carries out a customer satisfaction survey to measure how satisfied …

The data NHSE collects is incomplete, as 55 trusts (out of more than 200) do not routinely provide this data. When we asked NHSE about the completeness of the data, NHSE told us it is working with trusts that are not routinely submitting and considering what other actions and levers it might have available to require people to submit in a timely fashion. It confirmed that one consequence of incomplete returns is that it has to make an estimate of the value of potential procurement savings and...

The data NHSE collects is incomplete, as 55 trusts (out of more than 200) do not routinely provide this data. When we asked NHSE about the completeness of the data, NHSE told us it is working with trusts that are …

NHS Supply Chain has started a transformation programme which aims to bring key improvements to the business. This programme runs from 2022–30 and its focus includes replacing or upgrading legacy IT and improving inventory management and supply chain capacity.23 The transformation programme was rated red/amber by NHS Supply Chain in its risk register as at August 2023, recognising the complex delivery challenges involved.24 NHS Supply Chain acknowledged the difficulties with transformation, i...

NHS Supply Chain has started a transformation programme which aims to bring key improvements to the business. This programme runs from 2022–30 and its focus includes replacing or upgrading legacy IT and improving inventory management and supply chain capacity.23 The …

There are some weaknesses and strengths in how NHS Supply Chain is managing the transformation programme. Most notably, there are questions about the capacity and resilience of NHS Supply Chain to deliver the necessary change, particularly in light of the heavy reliance on the Chief Executive Officer for NHS Supply Chain and delays in getting the appropriate approvals for recruiting a chief delivery officer.27 NHSE acknowledged that the process has taken longer than it would want and that the...

There are some weaknesses and strengths in how NHS Supply Chain is managing the transformation programme. Most notably, there are questions about the capacity and resilience of NHS Supply Chain to deliver the necessary change, particularly in light of the …

NHS Supply Chain is also trying to improve its procurement route known as eDirect, which has had well-known problems since 2018. Some £1.5 billion of orders came through this channel in 2022–23.29 NHS Supply Chain acknowledged that from a trust’s perspective, while eDirect is working as it was designed, it is no longer what is needed to match the technology in some hospitals. NHS Supply Chain will therefore have to modernise at the same pace as NHS trusts are modernising their technology.30 N...

NHS Supply Chain is also trying to improve its procurement route known as eDirect, which has had well-known problems since 2018. Some £1.5 billion of orders came through this channel in 2022–23.29 NHS Supply Chain acknowledged that from a trust’s …

The time taken to recruit staff across the civil service is too slow. It takes an average of 99 days to hire new staff in the civil service, from the job being advertised to completing basic pre-employment checks. Completing security checks for new recruits can take on average an additional 171 days for candidates requiring the highest level of security clearance. The Cabinet Office acknowledges that civil service recruitment times are slow, particularly compared with private sector firms, an...

The time taken to recruit staff across the civil service is too slow. It takes an average of 99 days to hire new staff in the civil service, from the job being advertised to completing basic pre-employment checks. Completing security …

Most departments do not know how much it costs to recruit staff, or how they could be more efficient. 14 of the 16 main departments cannot provide full recruitment cost data. Only one department, HM Revenue & Customs, understands its recruitment costs well enough to be able to calculate its cost per hire, which is a standard metric for assessing the efficiency of an organisation’s recruitment processes. The Cabinet Office says it is developing a way of measuring and benchmarking recruitment c...

Most departments do not know how much it costs to recruit staff, or how they could be more efficient. 14 of the 16 main departments cannot provide full recruitment cost data. Only one department, HM Revenue & Customs, understands its …

However, the commitments and metrics in the Civil Service People Plan do not set out target or expected levels of performance against which the Cabinet Office can measure and evaluate the success of the Plan. For example, recruitment times will be measured using a common time to hire metric, but the Cabinet Office told us it was not yet able to specify a benchmark for how many days it should take departments to hire staff.9 The People Plan also does not say how it will improve the poor state ...

However, the commitments and metrics in the Civil Service People Plan do not set out target or expected levels of performance against which the Cabinet Office can measure and evaluate the success of the Plan. For example, recruitment times will …

The Cabinet Office told us that it had agreed a standard definition of time to hire with departments, defined as the time taken from a job advertisement being published to a job offer being made.13 Using a similar definition, the average time to hire across all departments in 2022 was 99 calendar days, based on departments’ reported recruitment times. Security clearance vetting time was on average an additional 171 calendar days, for recruits requiring the highest level of security clearance....

The Cabinet Office told us that it had agreed a standard definition of time to hire with departments, defined as the time taken from a job advertisement being published to a job offer being made.13 Using a similar definition, the …

The Cabinet Office acknowledged that departments did not collect consistent and comparable data on how long it takes to recruit and vet candidates.16 The Cabinet Office told us it is working to improve the understanding of recruitment times across the civil 8 Cabinet Office, Civil Service statistics: 2019, 24 July 2019; Cabinet Office, Civil Service statistics: 2023, 2 August 2023 9 Qq10, 15 10 Qq29, 31 11 Q97 12 C&AG’s Report, para 2.4 13 Q10 14 Q12; C&AG’s Report, paras 10–11 15 Q12 16 Q13;...

The Cabinet Office acknowledged that departments did not collect consistent and comparable data on how long it takes to recruit and vet candidates.16 The Cabinet Office told us it is working to improve the understanding of recruitment times across the …

Most departments—14 out of the 16 main civil service departments in 2022—do not collect full information on their recruitment costs and therefore do not understand how much it costs them to hire staff. The Ministry of Justice told us that, in common with most other departments, it does not track the cost of staff time spent on recruitment activities by line managers involved in hiring staff.19 HMRC is the only department that is able to calculate its cost per hire, a standard measure for asse...

Most departments—14 out of the 16 main civil service departments in 2022—do not collect full information on their recruitment costs and therefore do not understand how much it costs them to hire staff. The Ministry of Justice told us that, …

The Cabinet Office noted that it was seeking to improve cost data and was benchmarking all costs associated with recruitment, which would enable departments to compare cost elements such as those for advertising or employment checks.21 However, there are no metrics on recruitment costs in the Civil Service People Plan, such as cost per hire, that departments will need to report against.22 The Cabinet Office did not confirm whether it would require departments to report recruitment costs consi...

The Cabinet Office noted that it was seeking to improve cost data and was benchmarking all costs associated with recruitment, which would enable departments to compare cost elements such as those for advertising or employment checks.21 However, there are no …

Most departments do not know how their recruitment performance compares to that of other organisations, either within the civil service or externally. In part this is due to the poor quality of recruitment data, as described above in relation to recruitment times and costs. The Cabinet Office explained this was why it was developing common metrics to enable departments to understand, compare and benchmark their performance internally and externally.24

Most departments do not know how their recruitment performance compares to that of other organisations, either within the civil service or externally. In part this is due to the poor quality of recruitment data, as described above in relation to …

Improving recruitment performance will also involve learning from the experience of others and from external best practice. We heard several examples of efficiency and good recruitment practice within the civil service, such as HMRC on recruitment costs and centralised recruitment, and the Ministry of Justice on ensuring the diversity of staff 17 Qq10–11 18 Cabinet Office, Civil Service People Plan 2024–2027, 10 January 2024 19 Qq 27–28; C&AG’s Report, para 12 20 Q30 21 Qq29, 31–32, 53 22 Cab...

Improving recruitment performance will also involve learning from the experience of others and from external best practice. We heard several examples of efficiency and good recruitment practice within the civil service, such as HMRC on recruitment costs and centralised recruitment, …

Performance management for civil service staff below SCS level is another responsibility delegated to individual departments. This has resulted in differences among departments in how they manage staff performance and support employees’ development. In particular, there is no common civil service-wide approach for identifying and dealing with staff underperformance in grades below the SCS.40 This has resulted in some departments not routinely collecting data on the number of underperforming s...

Performance management for civil service staff below SCS level is another responsibility delegated to individual departments. This has resulted in differences among departments in how they manage staff performance and support employees’ development. In particular, there is no common civil …

The Cabinet Office’s approach to dealing with staff underperformance, and raising performance levels more generally, is based on improving the confidence and capability of line managers in departments. The Cabinet Office told us that as part of work to implement the Civil Service People Plan, it is setting standards that line managers will need to work towards and is providing training to support line managers.45 However, it is hard to see how performance management in the civil service can b...

The Cabinet Office’s approach to dealing with staff underperformance, and raising performance levels more generally, is based on improving the confidence and capability of line managers in departments. The Cabinet Office told us that as part of work to implement …

The Cabinet Office has not assessed or coherently identified the skills and expertise needed for monitoring and responding to companies in distress. We have previously raised concerns about the level of commercial, risk management and corporate finance expertise in government amid increasing demand for these skills, all of which are important for monitoring and responding to companies in distress. Departments and regulators face the challenge of competing with the private sector for these hig...

The Cabinet Office has not assessed or coherently identified the skills and expertise needed for monitoring and responding to companies in distress. We have previously raised concerns about the level of commercial, risk management and corporate finance expertise in government …

The government’s corporate knowledge about the health of key sectors and companies may be vulnerable because of the high turnover of civil servants in this field, who may have 17 Correspondence from HM Treasury to Committee, 30 January 2024 18 C&AG’s Report, para 1.8 19 Q23 20 C&AG’s Report, para 2.15 21 National Audit Office (NAO) Report, Good practice guide: Monitoring and responding to companies in distress, October 2023, page 10 22 C&AG’s Report, para 2.17 23 Qq13,27; C&AG’s Report, para ...

The government’s corporate knowledge about the health of key sectors and companies may be vulnerable because of the high turnover of civil servants in this field, who may have 17 Correspondence from HM Treasury to Committee, 30 January 2024 18 …

Departments must have, or be able to access, the skills, expertise and capacity needed through the whole lifecycle of any intervention in a company, including to prepare for and respond to company distress scenarios.56 We have repeatedly highlighted longstanding issues with a lack of specialist skills in the civil service and the challenges with attracting and retaining specialist staff.57 We recently found in our 2023 Bulb Energy report that the need for commercial and corporate finance skil...

Departments must have, or be able to access, the skills, expertise and capacity needed through the whole lifecycle of any intervention in a company, including to prepare for and respond to company distress scenarios.56 We have repeatedly highlighted longstanding issues …

The Treasury told us that having the right skills and capabilities in place is “a really critical lesson” highlighted by the NAO’s report. It acknowledged that these skills are currently “patchy across government”.61 The relevant specialist skills for responding to company distress situations are concentrated mainly at the centre of government.62 The Treasury told us that its special situations team, UKGI and the Cabinet Office were the “three pockets in the centre” that held the “expertise a...

The Treasury told us that having the right skills and capabilities in place is “a really critical lesson” highlighted by the NAO’s report. It acknowledged that these skills are currently “patchy across government”.61 The relevant specialist skills for responding to …

Nonetheless, the Treasury reiterated that it is up to departments and regulators to ensure they have the capability and capacity to discharge their duties, including understanding what financial expertise they need.66 The Department for Business and Trade explained how the kinds of skills it requires, including commercial, financial and accounting skills, are high in demand across the private sector and government. We heard how regulators face the same challenges in competing for these skills...

Nonetheless, the Treasury reiterated that it is up to departments and regulators to ensure they have the capability and capacity to discharge their duties, including understanding what financial expertise they need.66 The Department for Business and Trade explained how the …

The MoD has made some progress with training senior responsible owners (SROs) and increasing the proportion of their time spent on delivering projects.64 SROs also now 52 Q 23 53 Qq 21, 23; C&AG’s Report, para 2.4 54 Qq 31, 113; C&AG’s Report, para 2.6 55 Q 30 56 Q 75 57 Q 75 58 Q 26; C&AG’s Report, para 2.6 59 Qq 15, 16 60 Q 102; C&AG’s Report, para 2.11 61 Q 106; C&AG’s Report, paragraph 2.11; “The full definition of ‘red’ is that “Successful delivery of the project appears to be unachievab...

The MoD has made some progress with training senior responsible owners (SROs) and increasing the proportion of their time spent on delivering projects.64 SROs also now 52 Q 23 53 Qq 21, 23; C&AG’s Report, para 2.4 54 Qq 31, …

We are concerned that the Treasury, DMO and NS&I will not have the necessary skills, experience, and institutional knowledge needed to overcome the challenges they face now, and in the years to come. The DMO and NS&I are both specialist organisations, with distinctly different skills sets and experience to those normally found in the Treasury. The Treasury faces challenges in maintaining the appropriate expertise in its debt management functions to be able to adequately scrutinise and challen...

We are concerned that the Treasury, DMO and NS&I will not have the necessary skills, experience, and institutional knowledge needed to overcome the challenges they face now, and in the years to come. The DMO and NS&I are both specialist …

We are concerned that significant problems with NS&I’s procurement of its Rainbow Programme could leave limited flexibility or room for further delays. During the COVID-19 pandemic, the Treasury required NS&I to raise £35 billion from retail savers – more than three times the previous year’s requirement. While unable to deliver this, NS&I managed to raise a record £23.8 billion. One of the challenges NS&I faced during the pandemic was its inability to scale up its customer facing operations o...

We are concerned that significant problems with NS&I’s procurement of its Rainbow Programme could leave limited flexibility or room for further delays. During the COVID-19 pandemic, the Treasury required NS&I to raise £35 billion from retail savers – more than …

However, the Rainbow Programme is already behind schedule. NS&I’s contract with Atos was due to expire in 2024, but delays to the Rainbow Programme resulted in NS&I extending the contract until April 2025. We asked NS&I about the reasons for this delay. In response, NS&I explained that one particular procurement process, which related to finding a company to provide the “digital experience” component of the Rainbow Programme (one element of the multiple provider model) was the main cause of t...

However, the Rainbow Programme is already behind schedule. NS&I’s contract with Atos was due to expire in 2024, but delays to the Rainbow Programme resulted in NS&I extending the contract until April 2025. We asked NS&I about the reasons for …

NS&I told us it had now successfully completed all the procurement stages and secured all the suppliers for the Rainbow Programme, meaning it was moving into the delivery phase. Despite meeting this milestone, NS&I still described the Rainbow Programme as a “big, complex programme” with many moving parts and challenges. NS&I explained that the three successful suppliers had developed their plans in isolation, meaning there was currently only a “loose plan” for the Rainbow Programme. NS&I adde...

NS&I told us it had now successfully completed all the procurement stages and secured all the suppliers for the Rainbow Programme, meaning it was moving into the delivery phase. Despite meeting this milestone, NS&I still described the Rainbow Programme as …

We asked NS&I whether it was working collaboratively with other parts of government to overcome some of the issues being faced on its Rainbow Programme. NS&I told us that it was receiving support from the Cabinet Office on “various complex transactions”. The Treasury added that it was “upskilling” and increasing the size of the NS&I workforce “quite considerably”. The Treasury explained that it aimed to reduce NS&I’s reliance on 37 Q 86 38 C&AG’s Report, para 3.22 39 Q 81 40 Q 78; C&AG’s Repo...

We asked NS&I whether it was working collaboratively with other parts of government to overcome some of the issues being faced on its Rainbow Programme. NS&I told us that it was receiving support from the Cabinet Office on “various complex …

We note the welcome increase in the PHSO’s number of staff, especially its new caseworkers. Likewise, we welcome the fact that it has retained specialist workers and has increased the amount of training it delivers to staff. This increase in training means it is even more important for the PHSO to retain staff, given the additional investment now being made in them. The Ombudsman and Chief Executive suggested current levels of staff turnover could be the result of a lack of opportunity for ca...

We note the welcome increase in the PHSO’s number of staff, especially its new caseworkers. Likewise, we welcome the fact that it has retained specialist workers and has increased the amount of training it delivers to staff. This increase in …

We welcome the PHSO’s digital ambition and believe that this is a sensible way to increase value for money. We request from the PHSO a further update on progress Parliamentary and Health Service Ombudsman Scrutiny 2022–23 29 towards achieving these aims, along with a detailed analysis of any financial savings expected to be made as a result, with both to be included in the PHSO’s next Annual Report and Accounts.

We welcome the PHSO’s digital ambition and believe that this is a sensible way to increase value for money. We request from the PHSO a further update on progress Parliamentary and Health Service Ombudsman Scrutiny 2022–23 29 towards achieving these …

Cabinet Office and HM Treasury do not have a full picture of the performance of functions. Cabinet Office’s current exercise to quantify functional savings has reported for the last two years, but it does not include all functions. In addition, 6 Cabinet Office functional savings functions deliver different types of savings and each sets its own methodology for tracking and claiming savings. This can make it hard to compare progress between the functions and means that there is a risk that ef...

Cabinet Office and HM Treasury do not have a full picture of the performance of functions. Cabinet Office’s current exercise to quantify functional savings has reported for the last two years, but it does not include all functions. In addition, …

Cabinet Office and HM Treasury have not ensured that functions have fully reported the efficiencies they achieve. Overall, government expects departments to make efficiency savings equivalent to 5% of their day-to-day budgets by 2024– 25, and each department has its own efficiency target. Currently, functions do not report all the savings they produce, and not all functions report their savings. There are no targets reported in the Government Efficiency Savings report Cabinet Office publishes...

Cabinet Office and HM Treasury have not ensured that functions have fully reported the efficiencies they achieve. Overall, government expects departments to make efficiency savings equivalent to 5% of their day-to-day budgets by 2024– 25, and each department has its …

Since the first functions were established in 2013, there are now 14 government functions, covering activities such as procurement, major project delivery and finance. We asked the Cabinet Office how successful it thought functions had been in improving efficiency. It told us that it thought that the functions had been very successful and provided a high level of specialist expertise to departments, as well as external challenge.11 The NAO found that the functions were different shapes and si...

Since the first functions were established in 2013, there are now 14 government functions, covering activities such as procurement, major project delivery and finance. We asked the Cabinet Office how successful it thought functions had been in improving efficiency. It …

The Cabinet Office told us that while it thought that the reported savings figures were “pretty robust”, it recognised that the figures could be more comprehensive and more consistent in the measurement of savings. The Cabinet Office recognised the need for consistent methodologies for calculating the savings achieved by functions, but asserted that these did not need to be identical because “the ways in which we actually achieve the savings across the different functions are genuinely differ...

The Cabinet Office told us that while it thought that the reported savings figures were “pretty robust”, it recognised that the figures could be more comprehensive and more consistent in the measurement of savings. The Cabinet Office recognised the need …

The Cabinet Office has measured and reported on the financial efficiency savings and wider benefits made by cross-government functions since 2021. In March 2022, it reported that functions, departments and other central government bodies had achieved £3.4 billion of cash-releasing savings in 2020–21. Of this, £1.4 billion was attributable to the Counter fraud Function and £1.2 billion to the Commercial Function. In July 2023, it reported that the cross-cutting central functional teams had del...

The Cabinet Office has measured and reported on the financial efficiency savings and wider benefits made by cross-government functions since 2021. In March 2022, it reported that functions, departments and other central government bodies had achieved £3.4 billion of cash-releasing …

We noted that, of the reported £3.4 billion savings, the overwhelming majority was attributed to a small number of functions. We therefore asked what work the Cabinet Office has undertaken to identify whether more savings could be achieved from elsewhere. The Cabinet Office explained that a lot of work was being done by functional experts and departments was regarded as business as usual, so was not counted as part of the efficiency savings achieved. It recognised that savings were heavily de...

We noted that, of the reported £3.4 billion savings, the overwhelming majority was attributed to a small number of functions. We therefore asked what work the Cabinet Office has undertaken to identify whether more savings could be achieved from elsewhere. …

The Cabinet Office is ultimately responsible for the accuracy of the figure for the total amount of savings reports. It co-ordinates, assures and reports the efficiency savings achieved by functions, and provides guidance on what they should report. But the NAO found that the Cabinet Office had not consistently reported the efficiency savings delivered by the functions. The Cabinet Office reports savings from those functions headquartered in the Cabinet Office for the period it is reporting o...

The Cabinet Office is ultimately responsible for the accuracy of the figure for the total amount of savings reports. It co-ordinates, assures and reports the efficiency savings achieved by functions, and provides guidance on what they should report. But the …

We noted that the NAO report stated that it was important that the Cabinet Office had a tighter definition of what a saving is, and that this needed to be consistently applied and have the same methodology and baseline. In its July 2023 report on the savings achieved, the Cabinet Office noted that the savings reported related to central government functional teams – the parts of functions which sit in the centre of government, rather than within 17 Qq 2, 4, 8, 28; C&AG’s Report paras 4, 6–7, ...

We noted that the NAO report stated that it was important that the Cabinet Office had a tighter definition of what a saving is, and that this needed to be consistently applied and have the same methodology and baseline. In …

The NAO concluded that functional savings report may therefore give an incomplete picture of savings generated across the functions. The Cabinet Office provides challenge on an ad-hoc basis to functions where it believes that they have secured savings but not submitted them as part of the reporting process. In 2023, the GIAA noted that this approach meant that there was a risk that efficiencies might be underreported due to the amount of support the Cabinet Office could provide to the functio...

The NAO concluded that functional savings report may therefore give an incomplete picture of savings generated across the functions. The Cabinet Office provides challenge on an ad-hoc basis to functions where it believes that they have secured savings but not …

We noted that a crucial area to improving reporting is ensuring that functions can get the data they need to identify savings, and that to do this effectively data systems needed to be updated or redesigned so that data sets were comparable. The Cabinet Office explained that two types of data were key; operational data, which is used to support the delivery of public services and analytical data which informs future policy. It told us that the crucial thing was ensuring that different local d...

We noted that a crucial area to improving reporting is ensuring that functions can get the data they need to identify savings, and that to do this effectively data systems needed to be updated or redesigned so that data sets …

As part of the government’s ambition to make savings equivalent to 5% of overall spend across government by 2024–25, every government department has both an efficiency target and an efficiency assumption “baked-in” to the funding allocated to it as part of the Spending Review. The Treasury explained that different departments had slightly different targets, depending on what it considered was deliverable. In its March 2022 and July 2023 reports on Government Efficiency Savings, however, the C...

As part of the government’s ambition to make savings equivalent to 5% of overall spend across government by 2024–25, every government department has both an efficiency target and an efficiency assumption “baked-in” to the funding allocated to it as part …

We asked the Cabinet Office how it was ensuring that there was sufficient direction and leadership in departments and functions’ approaches to achieving savings. The Cabinet Office told us that it was getting “terrific value” in areas such as land disposals, where it had set a clear target for each department and public body to help achieve savings 20 Q 41; C&AG’s Report, para 1.9–1.10 21 C&AG’s Report paras 11, 2.6 22 Qq 59–62 23 Qq 33, 36; C&AG’s Report, para 2, 3.2; Cabinet Office, Governm...

We asked the Cabinet Office how it was ensuring that there was sufficient direction and leadership in departments and functions’ approaches to achieving savings. The Cabinet Office told us that it was getting “terrific value” in areas such as land …

We asked the Treasury whether, as the lead for the Finance Function, it had shared the methods it had put in place to develop savings with other functions. The Treasury told us that the heads of functions met regularly as part of the Government Finance Function Efficiency and Performance Group, which focused on sharing best practice within functions, between functions, and across departments. However, the NAO, concluded that the Cabinet Office did not share examples of good practice between f...

We asked the Treasury whether, as the lead for the Finance Function, it had shared the methods it had put in place to develop savings with other functions. The Treasury told us that the heads of functions met regularly as …

We asked the Cabinet Office how accurately it could predict what savings would be achieved in future. It told us that this had changed over time and depended in part on the extent to which the methodologies to calculate savings had been developed by the functions. The Cabinet Office explained that the methodology used to calculate efficiency savings was working well in relation to areas such as counter-fraud, debt management and commercial transactions, but in others they were still being dev...

We asked the Cabinet Office how accurately it could predict what savings would be achieved in future. It told us that this had changed over time and depended in part on the extent to which the methodologies to calculate savings …

We asked what scope there was to accelerate the identification of savings. The Cabinet Office told us that the next year would be one of transition given the introduction of the Efficiency Framework and expanding this from the Treasury and Cabinet Office teams to all government departments. The Cabinet Office told us that it wanted to increase savings, but that it was simultaneously aware that savings were also indications that something could have been done at a lower cost in the first place...

We asked what scope there was to accelerate the identification of savings. The Cabinet Office told us that the next year would be one of transition given the introduction of the Efficiency Framework and expanding this from the Treasury and …

The NAO found that while the Government Internal Audit Agency (GIAA) looked at the processes the functions used to calculate and assure the savings claimed, it did not consider whether the efficiency savings created adverse effects on other parts of government. The scope of the GIAA’s audit did not include assurance over whether savings affect resilience planning, service user experience, or add costs to other parts of government. In addition, the NAO found that the Cabinet Office did not ask...

The NAO found that while the Government Internal Audit Agency (GIAA) looked at the processes the functions used to calculate and assure the savings claimed, it did not consider whether the efficiency savings created adverse effects on other parts of …

The Cabinet Office also noted that the introduction of the new Framework will mean that there will need to be an agreement between central government and departments about the proportions of savings that are collated to each, which is thought would become “a bit tighter”. It said that it was still keen to track the overall picture of savings across functions, because this was important to benchmarking activity – whereas if thought that if it only tracked savings by department, it would lose “...

The Cabinet Office also noted that the introduction of the new Framework will mean that there will need to be an agreement between central government and departments about the proportions of savings that are collated to each, which is thought …

In February 2023, the Government’s Chief Commercial Officer wrote to Palantir noting his concern about the practice of offering services to public sector customers for a zero or nominal cost to gain a commercial foothold, contrary to the principles of public procurement which usually require open competition. The Chief Commercial Officer’s advice was copied to senior digital and procurement officials in government alongside confirmation that free trial contracts should be avoided by governmen...

In February 2023, the Government’s Chief Commercial Officer wrote to Palantir noting his concern about the practice of offering services to public sector customers for a zero or nominal cost to gain a commercial foothold, contrary to the principles of …

Effective regulation will require Ofcom and the Department to sustain the skills and people they need in a fast-moving and highly technical sector. To date, Ofcom has successfully recruited the skills it requires, recruiting people from industry and a wide variety of other sources. This has increased Ofcom’s headcount by nearly 50%. Ofcom has taken the opportunity to reshape itself more widely and is recruiting non-executive directors to ensure its board is appropriately diverse with relevant...

Effective regulation will require Ofcom and the Department to sustain the skills and people they need in a fast-moving and highly technical sector. To date, Ofcom has successfully recruited the skills it requires, recruiting people from industry and a wide …

To deliver its online safety work, Ofcom reported that it has increased its headcount, from around 950 people to what will probably be around 1,500, an increase of about 50%.52 Progress in meeting its staffing requirements has been broadly to schedule.53 Ofcom described such a major recruitment programme as both a challenge and an opportunity to improve the overall shape and make-up of the organisation. It had been able to grow its expertise in technology and data, and now had a workforce tha...

To deliver its online safety work, Ofcom reported that it has increased its headcount, from around 950 people to what will probably be around 1,500, an increase of about 50%.52 Progress in meeting its staffing requirements has been broadly to …

Ofcom told us that some recruits have returned to industry, but that retention generally is not an issue at the moment.56 It told us that it is confident in its ability to attract the necessary talent, with people attracted by Ofcom’s mission and the opportunity to achieve change to online safety. We asked Ofcom about the salaries it is offering. As an independent regulator, Ofcom is able to set its own salaries. Ofcom told us that the salaries it offers are what is required to attract the ne...

Ofcom told us that some recruits have returned to industry, but that retention generally is not an issue at the moment.56 It told us that it is confident in its ability to attract the necessary talent, with people attracted by …

Ofcom has undertaken extensive organisational design work to prepare for and operate the new regulatory regime.58 Ofcom explained that, to improve accountability and organisational clarity, it re-organised around four groups of work, of which online safety is one. Accountability for delivering Ofcom’s online safety responsibilities sits within this online safety group.59 Ofcom is confident that this new structure will enable it to respond quickly to new and emerging harms but acknowledged tha...

Ofcom has undertaken extensive organisational design work to prepare for and operate the new regulatory regime.58 Ofcom explained that, to improve accountability and organisational clarity, it re-organised around four groups of work, of which online safety is one. Accountability for …

The Department also recognised that it needs to be constantly evolving its own capabilities so that it has the right resources to deal with the new risks and opportunities arising in a rapidly changing environment. It cited as examples the work it had done since its own creation in response to the rapid developments in generative AI, such as the emergence of ChatGPT. However, the challenge it faced was making that ability to evolve and respond quickly to change part of its DNA.62 Evaluating a...

The Department also recognised that it needs to be constantly evolving its own capabilities so that it has the right resources to deal with the new risks and opportunities arising in a rapidly changing environment. It cited as examples the …

Many cross-government projects that come before this Committee are hindered by missing or inadequate data. The government has historically had an issue with poor quality and inconsistent data and with ineffective data sharing arrangements. Whilst there have been some positive improvements, such as establishing data standards across government, difficulty with data sharing was the most commonly identified barrier in a recent HM Treasury survey about cross-government working. In addition, insuf...

Many cross-government projects that come before this Committee are hindered by missing or inadequate data. The government has historically had an issue with poor quality and inconsistent data and with ineffective data sharing arrangements. Whilst there have been some positive …

On the basis of a report by the Comptroller and Auditor General, we took evidence from Sir Alex Chisholm, Permanent Secretary at the Cabinet Office, and from Cat Little, Second Permanent Secretary at HM Treasury, about cross-government working.1 We also took evidence from four practitioners to understand more about the key challenges and opportunities they have experienced from cross-government working. They were: Catherine Hutchinson, Head of the Evaluation Task Force; Will Garton, Director ...

On the basis of a report by the Comptroller and Auditor General, we took evidence from Sir Alex Chisholm, Permanent Secretary at the Cabinet Office, and from Cat Little, Second Permanent Secretary at HM Treasury, about cross-government working.1 We also …

Both our reports and those undertaken by the National Audit Office (NAO) regularly demonstrate the importance of a shared vision and objectives, coordinated programme and risk management, and compatible data and technology to ensure successful cross- government working.8

Both our reports and those undertaken by the National Audit Office (NAO) regularly demonstrate the importance of a shared vision and objectives, coordinated programme and risk management, and compatible data and technology to ensure successful cross- government working.8 Type: conclusion …

It is important to understand how these models are being used across government and identify which model of joint working is most appropriate in different circumstances. HM Treasury explained that it had not yet analysed what proportion of cross-government working was undertaken through each of the different models but said this would certainly be something they could consider taking forward.10

It is important to understand how these models are being used across government and identify which model of joint working is most appropriate in different circumstances. HM Treasury explained that it had not yet analysed what proportion of cross-government working …

Many of the projects and programmes brought before the Committee suffer from a lack of good quality data or are adversely affected by government IT systems not ‘talking’ to each other.22 Issues with data was identified as the main barrier to cross-government working in HM Treasury’s and the Cabinet Office’s survey of 229 departmental practitioners in 2022. 63% of respondents felt that technical issues made it difficult to share data effectively across government and 62% saw departmental unwil...

Many of the projects and programmes brought before the Committee suffer from a lack of good quality data or are adversely affected by government IT systems not ‘talking’ to each other.22 Issues with data was identified as the main barrier …

The Cabinet Office told us that one of the bigger challenges across government is extracting the value out of the data to drive insights and decisions in a timely way.27 Without good data it is difficult to evaluate effectively what works.28 In addition, insufficient data capacity and capability across government means skills needed to interpret data are not available. The Cabinet Office told us it launched the ‘One Big Thing’ initiative to deliver data training and claimed that 40% of civil ...

The Cabinet Office told us that one of the bigger challenges across government is extracting the value out of the data to drive insights and decisions in a timely way.27 Without good data it is difficult to evaluate effectively what …

HS2 Ltd told us more directly that 89% of the difference between the Departments’ 2020 estimate of £44.6 billion and now was about how the Main Works Civils contracts were manifesting. It said that the Government’s decision to let cost-plus contracts, with few incentives and penalties, had left HS2 Ltd without any real levers on contractors to do better in relation to schedule and costs. The Department then agreed that the Main Works Civils had been the principal driver of cost increase.28 In...

HS2 Ltd told us more directly that 89% of the difference between the Departments’ 2020 estimate of £44.6 billion and now was about how the Main Works Civils contracts were manifesting. It said that the Government’s decision to let cost-plus …

On recent development in governance in HS2 Ltd, the company told us it had streamlined executive governance to focus on costs and deliverables, and improved management information significantly, and that it had also recruited two further finance directors and established a new sub-committee for finance and performance. HS2 Ltd said it had significantly strengthened the Board with two recent appointments, and would be making two further non-executive director appointments with a particular foc...

On recent development in governance in HS2 Ltd, the company told us it had streamlined executive governance to focus on costs and deliverables, and improved management information significantly, and that it had also recruited two further finance directors and established …

In July the Chief of the Defence Staff told us that, as well as in medical and health, there were also skills and capability shortages in cyber/digital127 and in addition, the MOD Annual Report and Accounts highlighted intelligence as a “key workforce capability area for priority action”. The shortfall in those professions (alongside engineering) is now being addressed through the development of pan-Defence plans.128

In July the Chief of the Defence Staff told us that, as well as in medical and health, there were also skills and capability shortages in cyber/digital127 and in addition, the MOD Annual Report and Accounts highlighted intelligence as a …

The MoD’s transformation plans are complex and ambitious, but its track record means we are sceptical about its ability to achieve them. The MoD has put in place the £2.5 billion Business Modernisation for Support (BMfS) programme to upgrade its legacy IT infrastructure and introduce aligned business processes across its bodies. This programme is intended to resolve many of the historic issues the MoD has faced in managing its inventory, however it is highly complex: transforming services for...

The MoD’s transformation plans are complex and ambitious, but its track record means we are sceptical about its ability to achieve them. The MoD has put in place the £2.5 billion Business Modernisation for Support (BMfS) programme to upgrade its …

However, we do not see how this step alone will address the existing gaps in the MoD’s data. For instance, when new systems were introduced in DE&S’s central warehouses through the Team Leidos contract, DE&S stated that it had to engage a private company to do a lot of work on the data for them.18 We were also concerned to hear that the contract for the Bridging the Gap programme, valued at £515 million, was awarded to a large defence prime contractor without a competitive tendering process.1...

However, we do not see how this step alone will address the existing gaps in the MoD’s data. For instance, when new systems were introduced in DE&S’s central warehouses through the Team Leidos contract, DE&S stated that it had to …

The MoD has put in place the £2.5 billion Business Modernisation for Support (BMfS) programme to upgrade its legacy IT infrastructure and introduce aligned business processes across its bodies. This programme is intended to resolve many of the historic issues the MoD has faced in managing its inventory, however, it is highly complex, transforming services for around 65,000 users across Defence whilst maintaining operations throughout.23 It has also put in place the Future Defence Support Serv...

The MoD has put in place the £2.5 billion Business Modernisation for Support (BMfS) programme to upgrade its legacy IT infrastructure and introduce aligned business processes across its bodies. This programme is intended to resolve many of the historic issues …

The MoD’s track record in delivering business and digital transformation is patchy; when we reported on The Defence Digital Strategy in 2022, we found that the MoD was struggling to deliver its largest and most transformational digital programmes. We also observed that the MoD faced challenges recruiting all the digital skills it needed, and as a result, the Committee is concerned about the level of skills and personnel available to MoD to manage these programmes.25 The MoD stated that it has...

The MoD’s track record in delivering business and digital transformation is patchy; when we reported on The Defence Digital Strategy in 2022, we found that the MoD was struggling to deliver its largest and most transformational digital programmes. We also …

Nonetheless, the MoD acknowledged it faces staffing gaps of around 25% across both BMfS and FDSS. For BMfS, the MoD has contracted a delivery support partner and is looking to bring in a digital non-executive director to provide advice. CDLS himself also 18 Q 34 19 Q 27 20 WMS 3 December 2010 cc95WS-96WS 21 Tenders Electronic Daily, Ministry of Defence, ISTAR, SCIS, 11 December 2020 22 Qq 16, 29, 37–38, 43 23 Q13; C&AG’s Report para 17 24 Q 44, C&AG’s Report para 17 25 Qq 14–16, 46; Committee...

Nonetheless, the MoD acknowledged it faces staffing gaps of around 25% across both BMfS and FDSS. For BMfS, the MoD has contracted a delivery support partner and is looking to bring in a digital non-executive director to provide advice. CDLS …

The MoD explained that the incentives for the LCST contract were intended to prioritise efficiency, but that medical supplies are a difficult area in which to achieve efficiencies. From 2019, the MoD changed the contract’s incentivisation by taking back a portion of the fee and returning it only if Team Leidos hit time targets and was able to deliver new projects and equipment faster. This did yield improvements; for example, the number of new medical equipment projects increased from six a y...

The MoD explained that the incentives for the LCST contract were intended to prioritise efficiency, but that medical supplies are a difficult area in which to achieve efficiencies. From 2019, the MoD changed the contract’s incentivisation by taking back a …

The GCF explained that part of the problem is that because multiple contracting authorities can enter data on suppliers, the same supplier could have different identities in today’s database. The GCF expects that a single supplier information database would address this issue in the future.17 It commented that the new single database will be better 9 C&AG’s Report, para 3.26 10 Q 2 11 C&AG’s Report, para 15 12 C&AG’s Report, para 16 13 Q 21 14 C&AG’s Report, para 2.16 15 Q 41 16 Q 18 17 Q 50 ...

The GCF explained that part of the problem is that because multiple contracting authorities can enter data on suppliers, the same supplier could have different identities in today’s database. The GCF expects that a single supplier information database would address …

The Department told us that its recent work on the reforms has amounted to a wider reset of the programme’s approach, and the programme is now fully resourced.15 It believes it has now addressed the weaknesses in its approach to the programme, and that the IPA’s review due this autumn should be more positive.16

The Department told us that its recent work on the reforms has amounted to a wider reset of the programme’s approach, and the programme is now fully resourced.15 It believes it has now addressed the weaknesses in its approach to …

The Department recognised the need to improve project capability across the whole organisation, and it has established a new director general role for project delivery. It told us it is looking at its capability, capacity and resource models across its portfolio of major projects and programmes. It told us that it has brought in over 100 programme management specialists in the past 12 months and a delivery partner to bring in specialists at short notice.17 Providing clarity to stakeholders

The Department recognised the need to improve project capability across the whole organisation, and it has established a new director general role for project delivery. It told us it is looking at its capability, capacity and resource models across its …

In May 2023, the Department published the evaluation strategy for the Programme.24 The evaluation strategy includes nine key performance indicators, which focus more on the performance of the service the Department is building rather than the outcomes for claimants. The NAO found that the Department was still working out what metrics it will use and what data it needs to monitor the transformation of the service as a whole. We therefore asked the Department whether its performance indicators ...

In May 2023, the Department published the evaluation strategy for the Programme.24 The evaluation strategy includes nine key performance indicators, which focus more on the performance of the service the Department is building rather than the outcomes for claimants. The …

Integrating digital systems is a common source of contractual failure and dispute. Contractors can use difficulties in the roll-out of a new system as justification for not 27 Q 32 28 Q 42; Civil Service People Survey 2022: Benchmark Scores, table 3 29 Qq 2, 37, 43 30 Qq 6, 21 31 C&AG’s Report, para 2.7 32 Q 62; C&AG’s Report, para 18 14 Revising health assessments for disability benefits performing to the contract.33 The National Audit Office identified three sources of this integration that...

Integrating digital systems is a common source of contractual failure and dispute. Contractors can use difficulties in the roll-out of a new system as justification for not 27 Q 32 28 Q 42; Civil Service People Survey 2022: Benchmark Scores, …

The Programme is over-reliant on consultancy services. NHP has depended heavily on external consultants since its creation, with 62% of posts filled using consultancy services in February 2023. DHSC estimates it will spend a further £842 million on consultancy services between 2023–24 and 203031. Some use of consultancy is to be expected on major construction programmes, but, as well as being expensive, over-reliance risks a lack of continuity and failure to build in-house capability. NHP asp...

The Programme is over-reliant on consultancy services. NHP has depended heavily on external consultants since its creation, with 62% of posts filled using consultancy services in February 2023. DHSC estimates it will spend a further £842 million on consultancy services …

In February 2023, 223 (62%) of the 361 positions in the NHP team were filled by consultants. Consultants outnumbered permanent employees by roughly two to one. Over the period from April 2021 to March 2023, £70 million (79%) of the NHP’s total day- to-day expenditure went on consultancy services.83 DHSC told us that it had to choose between making an extremely slow start to the programme, with just those individuals it could recruit, or to start with a larger amount of external consultancy su...

In February 2023, 223 (62%) of the 361 positions in the NHP team were filled by consultants. Consultants outnumbered permanent employees by roughly two to one. Over the period from April 2021 to March 2023, £70 million (79%) of the …

However, DHSC’s actual plans seem to contradict this, indicating an ongoing reliance on external delivery partners to provide professional and technical skills and for specific assignments. It estimates that it will spend £842 million on consultancy services between 2023–24 and 2030–31, which represents 75% of its total day-to-day expenditure for those years.85 Such a reliance in a long-term programme can be very expensive as well as risking a lack of continuity and loss of knowledge.86 DHSC ...

However, DHSC’s actual plans seem to contradict this, indicating an ongoing reliance on external delivery partners to provide professional and technical skills and for specific assignments. It estimates that it will spend £842 million on consultancy services between 2023–24 and …

The complex nature of the Special Administration Regime and sale process has required specialist skills and advice that are in limited supply within government. During the SAR and sale process for Bulb, government sought and appointed various advisers to support the Bulb process and also to advise on matters such as creditor disputes and structuring the sale deal to protect taxpayers’ money. By the end of January 2023, the Department had spent £53 million on advisers. Of this, the Department ...

The complex nature of the Special Administration Regime and sale process has required specialist skills and advice that are in limited supply within government. During the SAR and sale process for Bulb, government sought and appointed various advisers to support …

This was the first time a SAR had been used and so we asked the Department and HM Treasury whether they had the skills and experience necessary to successfully deliver the SAR at the outset of the process. The Department told us that despite the exercises and war-gaming to prepare for the SAR, the process was “highly novel, complex, first of 30 Qq 86, 94–95; C&AG’s Report, paras 2.16, 2.19 31 Q 95 32 Q 86; C&AG’s Report, para 2.19 33 C&AG’s Report, para 2.15 34 Q 99 35 Qq 24, 89; C&AG’s Repor...

This was the first time a SAR had been used and so we asked the Department and HM Treasury whether they had the skills and experience necessary to successfully deliver the SAR at the outset of the process. The Department …

The Department told us that it was continuously developing its in-house skills in areas such as insolvency and restructuring. HM Treasury told us that every department needed to have corporate finance and insolvency expertise and that it had seen an increase in the levels of corporate finance work being undertaken by government in the last two years. In its view, all of these activities were an important part of continuing to build capability. HM Treasury also told us that it was working to h...

The Department told us that it was continuously developing its in-house skills in areas such as insolvency and restructuring. HM Treasury told us that every department needed to have corporate finance and insolvency expertise and that it had seen an …

Levels of bullying, harassment and discrimination at the Cabinet Office remain a point of concern. We welcome the desire expressed by senior leaders to reduce those levels and are encouraged to learn that a formal programme is in place to address these issues.

Levels of bullying, harassment and discrimination at the Cabinet Office remain a point of concern. We welcome the desire expressed by senior leaders to reduce those levels and are encouraged to learn that a formal programme is in place to …

The Cabinet Office should report to the Committee on its progress in delivering the ‘A Better Cabinet Office’ programme, in its response to this report. As part of that work, the Cabinet Office should include a thorough evaluation of its success or otherwise in delivering on the recommendations of its earlier Respect and Inclusion Review. (Paragraph 67) 26 Civil Service People Survey

The Cabinet Office should report to the Committee on its progress in delivering the ‘A Better Cabinet Office’ programme, in its response to this report. As part of that work, the Cabinet Office should include a thorough evaluation of its …

Broader programme-related good practice, such as having the skills, leadership and governance relevant to the programme stage, has not always been applied. Government departments do not always have the specific skills needed to undertake a reset. This includes not always having the right leadership with an appropriate SRO, the importance of which we have regularly highlighted, to oversee the reset or future programme. Although we are told there has been less churn of SROs than there used to b...

Broader programme-related good practice, such as having the skills, leadership and governance relevant to the programme stage, has not always been applied. Government departments do not always have the specific skills needed to undertake a reset. This includes not always …

SROs described how it would be helpful if resets were seen more positively, which HM Treasury suggested government was moving towards.18 They also commented that resets can be seen as a failure and can be a traumatic event for programme staff, after which the confidence of the team would need to be rebuilt.19 Negative perceptions could mean government bodies continue trying to resolve unresolvable issues and lead to wasted effort and costs.20 The SRO for electronic monitoring commented that “...

SROs described how it would be helpful if resets were seen more positively, which HM Treasury suggested government was moving towards.18 They also commented that resets can be seen as a failure and can be a traumatic event for programme …

Various factors, both internal and external to a programme, can contribute to the need for a reset.28 We heard how this can include the programme going off track, the need to improve confidence in supplier delivery, or to resolve technical problems and set a realistic schedule.29 Factors can result from deep-rooted issues caused by poor programme planning, the importance of which we have been stressing for some time.30 The IPA told us it is trying to encourage practitioners to set up projects...

Various factors, both internal and external to a programme, can contribute to the need for a reset.28 We heard how this can include the programme going off track, the need to improve confidence in supplier delivery, or to resolve technical …

Without the right environment, individuals may be afraid to report problems in a timely and honest way, which makes it harder to identify the need for a reset and the issues a reset should address.41 We heard from the SRO for Universal Credit that creating this openness was the hardest, but most important, thing to achieve in projects.42 Also, the SRO for Crossrail spoke about how the programme started to believe its own ‘on- time, on-budget’ mantra which stopped many people raising issues.43...

Without the right environment, individuals may be afraid to report problems in a timely and honest way, which makes it harder to identify the need for a reset and the issues a reset should address.41 We heard from the SRO …

We asked SROs about the diversity of their programme boards, which could help establish an effective, open and constructive environment. For Universal Credit, the SRO explained how, over time, the Board had included women and men in almost equal number fulfilling different roles, alongside representatives from HM Treasury, the IPA and a local authority. For electronic monitoring, the SRO described the Programme Board as representative of HM Prison & Probation Service but recognised that this ...

We asked SROs about the diversity of their programme boards, which could help establish an effective, open and constructive environment. For Universal Credit, the SRO explained how, over time, the Board had included women and men in almost equal number …

We were interested to hear about the role of non-executive directors in creating an environment supportive of challenge and diverse thinking. The SRO for Universal Credit explained how it was useful having a non-executive director chairing the Programme Board.49 The SRO for Ajax spoke about how he has reset the Board to expand the number of voices around the table, trying to bring-in more diversity and non-advocate challenge. For electronic monitoring the SRO told us that, when they were disc...

We were interested to hear about the role of non-executive directors in creating an environment supportive of challenge and diverse thinking. The SRO for Universal Credit explained how it was useful having a non-executive director chairing the Programme Board.49 The …

It is important to have open and honest conversations on how to progress a programme, including whether a reset is the right solution.52 Where a government body identifies a programme is at risk of not achieving its intended outcomes, it should consider a range of options to address this. This should include whether the programme should be stopped, with costs potentially written off.53 HM Treasury emphasised that it is really important programme teams consider stopping a programme, and starti...

It is important to have open and honest conversations on how to progress a programme, including whether a reset is the right solution.52 Where a government body identifies a programme is at risk of not achieving its intended outcomes, it …

Governance arrangements need to evolve throughout a programme lifecycle to reflect the risks and requirements at each stage. This includes both during and after a reset, so governance and approvals processes remain proportionate to the programme risks with skills, expertise and leadership brought in as required.65 The SRO for Crossrail told us how, when they reset the project in 2018, they worked to bring sponsors, such as DfT and 57 C&AG’s Report, para 21–22 58 Q 85 59 Qq 77–78 60 Qq 73–79 6...

Governance arrangements need to evolve throughout a programme lifecycle to reflect the risks and requirements at each stage. This includes both during and after a reset, so governance and approvals processes remain proportionate to the programme risks with skills, expertise …

Given a reset may involve different activities, or a different focus, to how the programme was being managed it may require specific skills and expertise such as around planning, negotiation, political engagement, or stakeholder management.68 As such, the skills and leadership for long-term major programmes, may need to change to reflect the stage of the programme.69 The SRO for Crossrail reflected on the importance of bringing in the right people with the right skills, even when things may l...

Given a reset may involve different activities, or a different focus, to how the programme was being managed it may require specific skills and expertise such as around planning, negotiation, political engagement, or stakeholder management.68 As such, the skills and …

The risk profile of a programme may shift with changes to the commercial approach or how this is managed during a reset. For a reset, the government body will need to consider what existing arrangements with delivery partners mean for how to undertake a reset and what it could achieve.89 Programme teams need to work with suppliers and delivery partners to establish an effective relationship for the reset and beyond.90 The SRO for electronic monitoring mentioned the role of the Government Comm...

The risk profile of a programme may shift with changes to the commercial approach or how this is managed during a reset. For a reset, the government body will need to consider what existing arrangements with delivery partners mean for …

Departments are mainly making piecemeal changes to legacy systems rather than investing in more efficient wider service redesign which would reap greater benefits. It is difficult to transform services where they are supported by poorly performing legacy systems and data. When government does not have the right resources and capabilities at all levels it tends to make more superficial incremental changes. This is a lost opportunity to fully redesign and transform services to achieve long-term...

Departments are mainly making piecemeal changes to legacy systems rather than investing in more efficient wider service redesign which would reap greater benefits. It is difficult to transform services where they are supported by poorly performing legacy systems and data. …

The requirement for senior generalist leaders to have a better understanding of digital business has not been formalised, and training is not focused on how digital developments interact with the complex government operational environment. The continued engagement with digital transformation of departments at permanent secretary level is essential to maintain traction. Setting up the Digital and Data Board is a good start, although we have heard that some permanent secretaries have been sendi...

The requirement for senior generalist leaders to have a better understanding of digital business has not been formalised, and training is not focused on how digital developments interact with the complex government operational environment. The continued engagement with digital transformation …

Digital skills shortages, including those self-inflicted through headcount cuts, risk costing government much more in the long run because opportunities to transform are foregone, and delays increase the risks of prolonging legacy systems. Government estimates it has under half the number of digital, data and technology professionals it needs, when benchmarked against comparable organisations. Yet departments are constrained in what they can pay and, while they try to offer more for specialis...

Digital skills shortages, including those self-inflicted through headcount cuts, risk costing government much more in the long run because opportunities to transform are foregone, and delays increase the risks of prolonging legacy systems. Government estimates it has under half the …

Central functions, such as procurement, have not made significant progress in treating digital programmes differently from physical infrastructure programmes. The Infrastructure and Projects Authority is responsible for assuring major programmes across government and has started to appoint people with digital expertise onto review teams. However, CDDO is working with the central functions on some of the broader challenges associated with understanding and embedding digital thinking into the a...

Central functions, such as procurement, have not made significant progress in treating digital programmes differently from physical infrastructure programmes. The Infrastructure and Projects Authority is responsible for assuring major programmes across government and has started to appoint people wi

We are unconvinced that departments will be able to maintain commitment to the agreed Roadmap activities in the face of competing pressures and priorities. Departments must buy in to the long-term advantages of following the digital change agenda. CDDO can monitor progress from the centre, but departments must continue to play their part in completing the agreed activities in the Roadmap. Lack of sustained leadership engagement is a risk to delivery that needs to be taken seriously and CDDO m...

We are unconvinced that departments will be able to maintain commitment to the agreed Roadmap activities in the face of competing pressures and priorities. Departments must buy in to the long-term advantages of following the digital change agenda. CDDO can …

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office about how digital transformation is progressing across government and what is being done to address the barriers and challenges.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office about how digital transformation is progressing across government and what is being done to address the barriers and challenges.1 Type: conclusion …

Pressures on spending in the current climate require better delivery for improved efficiency at lower cost.9 However, competing pressures and changing priorities will present challenges to the delivery of the Roadmap, despite CDDO’s best endeavours. CDDO is using quarterly assessments, supported by its digital dashboard, to monitor progress against commitments and identify where departments may be going off track and the steps needed to correct this.10 CDDO must maintain suitable levers to ke...

Pressures on spending in the current climate require better delivery for improved efficiency at lower cost.9 However, competing pressures and changing priorities will present challenges to the delivery of the Roadmap, despite CDDO’s best endeavours. CDDO is using quarterly assessments, …

Only a small proportion of senior decision-makers in government have first-hand experience of digital business and senior digital leaders in departments struggle to communicate their messages effectively because their wider leadership teams lack sufficient knowledge of digital issues.13 The continued support of departments at permanent secretary level is essential for maintaining traction and setting up the Digital and Data Board is a good start. However, we have heard that some senior leader...

Only a small proportion of senior decision-makers in government have first-hand experience of digital business and senior digital leaders in departments struggle to communicate their messages effectively because their wider leadership teams lack sufficient knowledge of digital issues.13 The continue

We were also surprised to see that the standard appointment letter for permanent secretaries makes no mention of their responsibilities for improving digital services, despite including others such as managing public money. Including reference to digital responsibilities would make clear the importance of the area.16 For example, it would mean permanent secretaries are fully aware of their responsibilities to address legacy systems.17

We were also surprised to see that the standard appointment letter for permanent secretaries makes no mention of their responsibilities for improving digital services, despite including others such as managing public money. Including reference to digital responsibilities would make clear …

Ongoing capability building and training for senior leaders is essential. It is being progressed through various training programmes but requires continual attention.18 We heard that a Digital Excellence programme has been piloted recently, although not yet widely rolled out. So far 300 people have been trained but this represents less than 5% of the senior civil service so far, against the target of 15% by September 2023.19 CDDO itself recognises it will take sustained effort and focus from ...

Ongoing capability building and training for senior leaders is essential. It is being progressed through various training programmes but requires continual attention.18 We heard that a Digital Excellence programme has been piloted recently, although not yet widely rolled out. So …

The use of advisers and non-executive directors with digital experience in board roles in departments is an excellent way of educating senior leaders in digital matters. Around half of current postholders consider they have digital expertise. However, those with a background in similar legacy environments to government will be of most value as they will be best placed to understand how digital developments interact with government’s complex operational environment.22 Digital skills shortages

The use of advisers and non-executive directors with digital experience in board roles in departments is an excellent way of educating senior leaders in digital matters. Around half of current postholders consider they have digital expertise. However, those with a …

There is a major digital skills shortage in the UK and skilled digital professionals command a premium in the market, making it hard for departments to recruit.23 Government estimates that the number of digital, data and technology professionals in the civil service is around 4.5%, less than half the number it needs when compared to an equivalent industry average of between 8% and 12%, and so the number will need to double.24 Departments are facing particular shortages in roles such as data a...

There is a major digital skills shortage in the UK and skilled digital professionals command a premium in the market, making it hard for departments to recruit.23 Government estimates that the number of digital, data and technology professionals in the …

Headcount reductions can be counter-productive at a time when government knows it needs to double its digital, data and technology capability and is struggling to recruit the staff it needs. We were therefore disappointed to hear that apprenticeships had been a victim of departmental decisions on headcount culls.31 Government should continuously invest in staff development for clear long-term benefit. 22 Qq 57–59 23 C&AG’s Report, para 27 24 Qq 11, 30 25 Qq 13–14 26 Q 31 27 Q 16 28 Q 14 29 Q ...

Headcount reductions can be counter-productive at a time when government knows it needs to double its digital, data and technology capability and is struggling to recruit the staff it needs. We were therefore disappointed to hear that apprenticeships had been …

A single director-level owner for each service, with accountability for its end-to-end operation and decision-making authority for continually improving the service, would enable departments to form a complete and joined-up view of their services and associated costs.32 Understanding the full cost base of an existing service is key to delivering efficiency. CDDO told us that in the private sector, information such as unit costs, time to serve and error rates is ‘foundational’. Without good in...

A single director-level owner for each service, with accountability for its end-to-end operation and decision-making authority for continually improving the service, would enable departments to form a complete and joined-up view of their services and associated costs.32 Understanding the full …

We heard that the lack of a single service owner makes it very difficult to answer questions about the costs of providing a service more widely across government.35 There can be many handovers between different teams delivering a service – policy, operations, digital and transformation. Furthermore, not all services are fully digital and require manual administrative effort to switch between different systems.36 Only 10 of government’s ‘top 75’ services are at a ‘great’ standard, when assesse...

We heard that the lack of a single service owner makes it very difficult to answer questions about the costs of providing a service more widely across government.35 There can be many handovers between different teams delivering a service – …

CDDO found that, for half the services it has evaluated, there is no single senior individual who has ownership of the full service, encompassing both the online citizen- facing portals and the back-office systems that perform the other processing. Instead, many different programme directors, operational leaders and digital leaders are involved.38 CDDO agrees the need for an end-to-end service owner to address the need for full visibility and end-to-end accountability for a service.39 Pieceme...

CDDO found that, for half the services it has evaluated, there is no single senior individual who has ownership of the full service, encompassing both the online citizen- facing portals and the back-office systems that perform the other processing. Instead, …

Across government, legacy systems are a key source of inefficiency and a major constraint to improving and modernising government services. Legacy systems are difficult and expensive to run and maintain and there are substantial hidden costs from additional business processes to overcome their limitations.40 CDDO has assessed the scale of legacy issues in 153 systems so far, across 16 departments. The framework provides 32 C&AG’s Report, para 3.6 33 Q 56 34 Q 52 35 Q 54 36 Q 6 37 Qq 2–3 38 C&...

Across government, legacy systems are a key source of inefficiency and a major constraint to improving and modernising government services. Legacy systems are difficult and expensive to run and maintain and there are substantial hidden costs from additional business processes …

Government has a low level of maturity in the transformation of digital services and the benefits to be gained from a more fundamental approach are estimated to be three or four times the current level.44 Past approaches have focussed on improving websites and front-end screens , making services “look good but not be good”, whilst not addressing the limitations posed by the existing legacy systems and data.45 The tendency to tweak rather than re-engineer is a lost opportunity to transform ser...

Government has a low level of maturity in the transformation of digital services and the benefits to be gained from a more fundamental approach are estimated to be three or four times the current level.44 Past approaches have focussed on …

Government recognises that the scale of the challenge on data is also enormous. It hopes that its data maturity framework will help address data maturity challenges across government. However, the committee has taken evidence many times on the challenges on data yet government has made little dent in addressing the issues in the last decade.48 One of the challenges to joining up citizen data is that it is not seen as a priority for one department to do work to benefit another department when ...

Government recognises that the scale of the challenge on data is also enormous. It hopes that its data maturity framework will help address data maturity challenges across government. However, the committee has taken evidence many times on the challenges on …

Redesigning services requires a more fundamental look at processes, not just the digital and technology elements.50 CDDO recognises this needs people not just with skills in technology, but also those who understand end-to-end processes, have the ability and willingness to analyse organisational structures, and the right capability and credibility to make the level of change required.51 Some departments can describe the benefits gained from transformation but struggle to systematically identi...

Redesigning services requires a more fundamental look at processes, not just the digital and technology elements.50 CDDO recognises this needs people not just with skills in technology, but also those who understand end-to-end processes, have the ability and willingness to …

Digital change requires specific ways of investing, funding and procuring digital services and requires upskilling and capability-building to introduce and adapt new approaches. Processes which work for other programmes are not always well-suited for digital programmes. But government central functions have not made significant progress in understanding what makes digital programmes different from infrastructure or construction programmes or reflecting this in policies and procedures which de...

Digital change requires specific ways of investing, funding and procuring digital services and requires upskilling and capability-building to introduce and adapt new approaches. Processes which work for other programmes are not always well-suited for digital programmes. But government central functi

Departments find it easier to secure capital funding for new developments than ongoing resource funding to maintain systems and keep them up to date.59 Moving services to cloud-based providers introduces new pricing models with an increasing emphasis on ‘pay-as-you-go’, which transfers traditional capital requirements to resource expenditure.60 Limiting resource expenditure means that departments can struggle to maintain services adequately once they have been built, and this can be a false e...

Departments find it easier to secure capital funding for new developments than ongoing resource funding to maintain systems and keep them up to date.59 Moving services to cloud-based providers introduces new pricing models with an increasing emphasis on ‘pay-as-you-go’, which …

The civil service is still quite generalist and led by people with a primarily policy background rather than by those with direct experience of digital business operations.64 Policy professionals do not have sufficient understanding to develop policies which work well in a digital organisational environment.65 There is low integration between policy 55 C&AG’s Report, paras 3.28–3.29 56 Q 66 57 Q 67 58 Q 68 59 C&AG’s Report, para 25; Q 62 60 Q 54 61 Q 69 62 C&AG’s Report, The challenges in imp...

The civil service is still quite generalist and led by people with a primarily policy background rather than by those with direct experience of digital business operations.64 Policy professionals do not have sufficient understanding to develop policies which work well …

DBT explained that the government did not issue local authorities with guidelines for undertaking debt recovery until December 2020.14 In March 2021 work started on checking a sample of payments from the first set of schemes. This work took until May 2022.15 DBT told us the recovery of losses to fraud and error by local authorities ought reasonably to be completed by the end of 2025. However, the Department cannot directly enforce this time limit and DBT mentioned that some authorities may ha...

DBT explained that the government did not issue local authorities with guidelines for undertaking debt recovery until December 2020.14 In March 2021 work started on checking a sample of payments from the first set of schemes. This work took until …

DBT told us that by May 2023 £20.9 million of losses had been recovered to date; this is around 2% of the £1.1 billion. We heard that £15 million had been recovered by local authorities and £6 million had been repaid to government voluntarily by large businesses. DBT also said that local authorities have referred a further £6 million of irregular payments to government after being unable to recover them, and authorities are currently pursuing another £7 million.19

DBT told us that by May 2023 £20.9 million of losses had been recovered to date; this is around 2% of the £1.1 billion. We heard that £15 million had been recovered by local authorities and £6 million had been …

Despite these arguments, DBT and HM Treasury also sought to reassure us that the government was serious about pursuing fraud.23 When pressed by us, DBT said it would reconsider the possibility of allowing local authorities to keep a proportion of 14 Qq 32, 36 15 C&AG’s Report, para 2.21 16 Qq 33–37 17 Q 27 18 C&AG’s Report, para 2.16 and Appendix One 19 Qq 13–14, 58, 75 20 Q 29 21 Qq 15, 28, 31 22 Q 19, 21, 28, 65–66 23 Q 67, 76 Local authority administered COVID support schemes in England 11...

Despite these arguments, DBT and HM Treasury also sought to reassure us that the government was serious about pursuing fraud.23 When pressed by us, DBT said it would reconsider the possibility of allowing local authorities to keep a proportion of …

When we asked about the current situation, DBT told us it now has a specialist business grants and investment directorate of 120 people with 30 working on grants, which it describes as a centre of excellence. It highlighted that members of the grants team have extensive experience in delivering grant schemes such as the Regional Growth Fund.46 In a letter after the session, DBT clarified that 14 members of the grants team 35 Qq 82–83 36 C&AG’s Report, para 2.14 37 Letter from Philip Duffy, HM...

When we asked about the current situation, DBT told us it now has a specialist business grants and investment directorate of 120 people with 30 working on grants, which it describes as a centre of excellence. It highlighted that members …

We are concerned about the ongoing skills shortage, as recognised in both the Government and industry’s regular reporting on cybersecurity skills in the labour market, and believe that the shortage will be exacerbated further as the product safety regime comes into force. We support industry’s calls for the Government to do more to address this issue. The Government should also take steps to support the availability of free courses across the country, encourage more professionals to become cy...

We are concerned about the ongoing skills shortage, as recognised in both the Government and industry’s regular reporting on cybersecurity skills in the labour market, and believe that the shortage will be exacerbated further as the product safety regime comes …

We are particularly concerned that, despite the shortage of cyber skills in the UK, there are stubborn and significant disparities in the cyber workforce based on gender and race and ethnicity. The Government should reflect on the significant disparities in gender and race/ethnicity in the cyber workforce and take steps to improve these divides, such as by introducing additional schemes and funding to widen the talent pool, improving the culture of and attitudes to the cyber profession both i...

We are particularly concerned that, despite the shortage of cyber skills in the UK, there are stubborn and significant disparities in the cyber workforce based on gender and race and ethnicity. The Government should reflect on the significant disparities in …

The Government appears to be making progress towards its target of relocating 22,000 posts by 2030, and steady progress towards a target of reducing the proportion of Senior Civil Service posts based in London to 50% of the total. However, a number of issues with the framing and reporting of these targets makes it difficult to judge how substantial the Government’s achievements are. It is striking that the Cabinet Office has published so little information on the rationale and design of its P...

The Government appears to be making progress towards its target of relocating 22,000 posts by 2030, and steady progress towards a target of reducing the proportion of Senior Civil Service posts based in London to 50% of the total. However, …

The Department said it was not being complacent, but acknowledged that even with the best team and governance arrangements it could assemble there was both considerable risk and a lot of work to do before ESN would be ready.16 Nevertheless, it was determined to ‘crack on’ with ESN and was confident it could solve the problems.17 While it acknowledged that optimism bias is a cultural issue in both the Department and wider civil service, and that it had been over-optimistic about ESN before, it...

The Department said it was not being complacent, but acknowledged that even with the best team and governance arrangements it could assemble there was both considerable risk and a lot of work to do before ESN would be ready.16 Nevertheless, …

Emergency services are temporarily disbanding their dedicated ESN teams that had been preparing for testing and transition, and the Department explained that there was currently very little for such teams to work on. It hoped each organisation would retain a “point of contact” but acknowledged that ESN might no longer be their priority.33

Emergency services are temporarily disbanding their dedicated ESN teams that had been preparing for testing and transition, and the Department explained that there was currently very little for such teams to work on. It hoped each organisation would retain a …

Since 2015, the market for the technology underpinning ESN has matured, so we asked whether ESN is now easier to deliver. The Department agreed that the programme was no longer at the cutting edge of technology.45 It told us that several other countries are now taking a similar approach to ESN, although some use a dedicated network, and others have involved multiple network operators.46 This means that rather than leading the way, the UK can now learn lessons from other countries.47

Since 2015, the market for the technology underpinning ESN has matured, so we asked whether ESN is now easier to deliver. The Department agreed that the programme was no longer at the cutting edge of technology.45 It told us that …

The Department now intends for ESN to use technology that is ‘as off-the-shelf as it can be’.48 The Independent Assurance Panel told us that the technology ESN is proposing to use is now more credible than when ESN started, in part because telecommunications standards have moved on, and now cover the features that ESN needs, including push- 36 Letter to the Chair of the Public Accounts Committee from Kier Pritchard, Chief Constable, NPCC lead for ESMCP, 15 May 2023 37 Qq 47, 48 (27 March) 38 ...

The Department now intends for ESN to use technology that is ‘as off-the-shelf as it can be’.48 The Independent Assurance Panel told us that the technology ESN is proposing to use is now more credible than when ESN started, in …

We queried whether the Department has the capability to manage the systems integration73 given its previous approaches had not worked.74 It agreed that it needs to strengthen its capability. When we asked if it was acquiring people with experience from other complex programmes, it said it was talking to other large programmes such as Crossrail and was looking for new supplier to supplement its skills. Its current contract with Deloitte was due to end and will be replaced in 2023.75

We queried whether the Department has the capability to manage the systems integration73 given its previous approaches had not worked.74 It agreed that it needs to strengthen its capability. When we asked if it was acquiring people with experience from …

Police were concerned that ESN may not prove any cheaper than commercial alternatives.83 We asked about operational benefits from access to data. The Department acknowledged that it no longer expected ESN to provide any productivity benefits.84 Police explained that almost all forces use mobile data via commercial tablets, laptops and smartphones, and the benefits from ESN enhancing these with priority access to data were not clear.85 The fire service said that its services were also using da...

Police were concerned that ESN may not prove any cheaper than commercial alternatives.83 We asked about operational benefits from access to data. The Department acknowledged that it no longer expected ESN to provide any productivity benefits.84 Police explained that almost …

Despite these concerns, all three emergency services did still see a continuing case for ESN. For example, the fire service said that there could be benefits from being able to share drone footage of incidents by ESN providing a common platform for such services. It noted that several reports into national incidents have called for better communication and coordination between the three emergency services.88 The Independent Assurance Panel pointed out that innovations and benefits would only ...

Despite these concerns, all three emergency services did still see a continuing case for ESN. For example, the fire service said that there could be benefits from being able to share drone footage of incidents by ESN providing a common …

In 2015, the Home Office awarded EE a six-year contract to provide the main network infrastructure for ESN. It intended for this contract to be subject to competition in the future, to avoid being locked into a single supplier and to help take advantage of 81 Qq 30, 53–54 (27 March) 82 Q 31 (27 March) 83 Q 10 (26 April) 84 Q 47 (27 March) 85 ESN0001 86 Q 4 (26 April) 87 Q 10 (26 April) 88 Q 11 (26 April) 89 Qq 12, 26 (26 April) 90 C&AG’s Report, para 2.30 91 C&AG’s Report, paras 15, 2.28 92 Q...

In 2015, the Home Office awarded EE a six-year contract to provide the main network infrastructure for ESN. It intended for this contract to be subject to competition in the future, to avoid being locked into a single supplier and …

We asked the Department about the timing of the 2022–23 annual report and accounts, the Department confirmed that it was aiming to lay its Accounts before the 2023 Christmas recess and then to gradually improve the timeliness in future years.49 The Department is currently working on a multi-year plan to enable the Annual Report and Accounts to be laid pre summer recess in line with Treasurys expectation, with its aim being to bring forward the laying date by a couple of months each year.50

We asked the Department about the timing of the 2022–23 annual report and accounts, the Department confirmed that it was aiming to lay its Accounts before the 2023 Christmas recess and then to gradually improve the timeliness in future years.49 …

The Department faces two main challenges to bring the audit timetable forward, issues within the Department’s control and issues within the local audit market. The Department acknowledges that it is always looking to build its finance capability and identified three areas where more expertise is needed: financial, commercial and digital. The Department however confirmed it had enough people within the finance team but that its focus was on the financial expertise of non-finance staff.51 There...

The Department faces two main challenges to bring the audit timetable forward, issues within the Department’s control and issues within the local audit market. The Department acknowledges that it is always looking to build its finance capability and identified three …

Non-executive board members were brought in in their current form in 2010 to “make Government operate in a more business-like manner”. However, it is unclear whether the corporate governance of Whitehall still sits at the centre of their purpose and activities. The role of non-executive board members and lead non-executive board members are broadly defined in the Corporate Governance Code for Central Government Departments and the accompanying guidance note. However, our evidence suggests tha...

Non-executive board members were brought in in their current form in 2010 to “make Government operate in a more business-like manner”. However, it is unclear whether the corporate governance of Whitehall still sits at the centre of their purpose and …

The Government’s commitment to review the appropriate role for NEDs and departmental boards, as part of the broader Governance and Accountability Review being led by the Rt. Hon. Lord Maude of Horsham, is welcome. However, the Committee is disappointed that it is now over five months overdue.

The Government’s commitment to review the appropriate role for NEDs and departmental boards, as part of the broader Governance and Accountability Review being led by the Rt. Hon. Lord Maude of Horsham, is welcome. However, the Committee is disappointed that …

We recommend that the Corporate Governance Code is updated to include a standard set of skills and qualities which are deemed desirable to undertake the role of a departmental NED or Lead NED, rather than express a preference for individuals from specific sectors. This would not preclude further specific expertise being outlined in job advertisements, but would seek to provide more clarity, transparency, and accountability on what skills and experience are relevant for the specific role. (Par...

We recommend that the Corporate Governance Code is updated to include a standard set of skills and qualities which are deemed desirable to undertake the role of a departmental NED or Lead NED, rather than express a preference for individuals …

The Corporate Governance Code stipulates that non-executive board members should be appointed on merit through a fair and open process. The current Government Lead Non-Executive told the Committee that a small proportion of NEDs currently in post have been directly appointed and, since he took on the The Role of Non-Executive Directors in Government 35 role in March 2022, every post had been advertised on the Cabinet Office public appointments website. However, our evidence suggests that thes...

The Corporate Governance Code stipulates that non-executive board members should be appointed on merit through a fair and open process. The current Government Lead Non-Executive told the Committee that a small proportion of NEDs currently in post have been directly …

The Cabinet Office should confirm in their response to this Report that the list of NEDs by department has been updated on GOV.UK, given this transparency data is now two years out of date. In addition to their names and department, we recommend that this list includes the year that the NEDs were appointed, and that the list is reviewed and updated at least annually.

The Cabinet Office should confirm in their response to this Report that the list of NEDs by department has been updated on GOV.UK, given this transparency data is now two years out of date. In addition to their names and …

The Government has indicated that it will implement the Committee on Standards in Public Life’s (CSPL) recommendation that NED appointments should be regulated by the Commissioner for Public Appointments, which we welcome. However, it is disappointing that it appears no progress has been made since the CSPL report was published in 2021.

The Government has indicated that it will implement the Committee on Standards in Public Life’s (CSPL) recommendation that NED appointments should be regulated by the Commissioner for Public Appointments, which we welcome. However, it is disappointing that it appears no …

The Cabinet Office should confirm in its response to this Report the timeline for implementing the CSPL recommendation that NED appointments should be regulated by the Commissioner for Public Appointments. This should apply to all NED appointments in Government departments. We also recommend that the position of Government Lead Non-Executive should be classed as a “significant appointment” under the Governance Code on Public Appointments, which would require a senior independent panel member ...

The Cabinet Office should confirm in its response to this Report the timeline for implementing the CSPL recommendation that NED appointments should be regulated by the Commissioner for Public Appointments. This should apply to all NED appointments in Government departments. …

The number of NEDs per department is variable. We believe there should be common standards underpinning the rationale for the number of NEDs per department in the interests of consistency and good governance. The Government should confirm in response to this Report a consistent policy in order to relate the number of NEDs in a department to its size and remit. This should then be reflected in future iterations of the Corporate Governance Code and accompanying guidance note. (Paragraph 57) Gov...

The number of NEDs per department is variable. We believe there should be common standards underpinning the rationale for the number of NEDs per department in the interests of consistency and good governance. The Government should confirm in response to …

Insufficient digital capacity is putting the Department’s plans to increase its impact at risk. The predecessor Department for International Trade had begun implementing an investment transformation programme that aims to deliver additional economic benefits of £135 million over five years and to help the UK compete with other countries for investment. The NAO report highlighted that the department’s lack of digital capacity was a risk to the delivery of the programme. The new Department says...

Insufficient digital capacity is putting the Department’s plans to increase its impact at risk. The predecessor Department for International Trade had begun implementing an investment transformation programme that aims to deliver additional economic benefits of £135 million over five years …

The Department aims to deliver additional economic benefits of £135 million through its ongoing investment transformation programme. As part of this programme it plans to create a more tailored service offer for different types of investor and provide new online services for managing lower-value investments and simple investor queries.29 It told us that its strategy for the transformation programme was informed by comparisons with investment services offered by competitor countries and best p...

The Department aims to deliver additional economic benefits of £135 million through its ongoing investment transformation programme. As part of this programme it plans to create a more tailored service offer for different types of investor and provide new online …

We asked the Department what it was doing to mitigate this risk. It told us that it was concerned that the formation of the new Department from its predecessor departments had placed additional pressures on its core digital team and that the digital team was reviewing its priorities. The Department plans to assess whether it needs to contract in additional digital support for the transformation programme and whether it will need to delay the programme.32 It said that contracting in digital su...

We asked the Department what it was doing to mitigate this risk. It told us that it was concerned that the formation of the new Department from its predecessor departments had placed additional pressures on its core digital team and …

The Department has no interim targets to track progress towards the 2030 attainment ambitions set out in the Schools White Paper. The Department has not specified the impact it wants to achieve from its interventions to support education recovery because it regards these as part of its wider efforts to improve pupils’ attainment. In the March 2022 Schools White Paper, the Department set ambitions for pupils’ attainment, by 2030, in literacy and numeracy at the end of primary school and second...

The Department has no interim targets to track progress towards the 2030 attainment ambitions set out in the Schools White Paper. The Department has not specified the impact it wants to achieve from its interventions to support education recovery because …

During this time, the House Administrations also worked to transition from the former Sponsor Body into the R&R Client Team. We have previously highlighted the risk that delays to changing the programme governance, and continuing uncertainty, could lead to a loss of vital capability from within the Sponsor Body and Delivery Authority.29 The Clerks had committed to work on retaining and recruiting the staff it needed, with Sponsor Body staff being TUPE’d across.30 Although the House Administra...

During this time, the House Administrations also worked to transition from the former Sponsor Body into the R&R Client Team. We have previously highlighted the risk that delays to changing the programme governance, and continuing uncertainty, could lead to a …

The governance structure of UKSV within Cabinet Office is a barrier to transformation. UKSV’s chief executive and the government chief security officer have low levels of delegated spending authority which means they require approval from the Cabinet Office Approvals Board for any spending over £500,000. That Board has repeatedly refused to give spending approval for the £40 million vetting transformation business case. UKSV’s Chief Executive cited governance around investment and the change ...

The governance structure of UKSV within Cabinet Office is a barrier to transformation. UKSV’s chief executive and the government chief security officer have low levels of delegated spending authority which means they require approval from the Cabinet Office Approvals Board …

We are not convinced that current plans for the transformation of security vetting are any more likely to succeed than previous failed attempts. The Cabinet Office’s first attempt at modernising the IT infrastructure for national security vetting failed, after unknowingly running almost 50% over budget and resulting in a £2.5 million write off in the Cabinet Office’s 2021–22 annual accounts. Despite broad consensus on the need for the transformation programme across government, which customer...

We are not convinced that current plans for the transformation of security vetting are any more likely to succeed than previous failed attempts. The Cabinet Office’s first attempt at modernising the IT infrastructure for national security vetting failed, after unknowingly …

When we asked what was being done to make UKSV more resilient and better able to deal with future upsurges in demand, the Cabinet Office offered us three solutions: 15 Q 26 16 Qq 22, 23; C&AG’s 2023 Report, Figures 10 and 11 17 C&AG’s 2023 Report, paras 2.3, 2.4 and Figure 7 18 C&AG’s Report, Investigation into national security vetting, Session 2017–2019, HC 1500, 7 September 2018, para 3.4 19 Q 27 20 Q 28 12 The performance of UK Security Vetting i) improvements in forecasting (see above). ...

When we asked what was being done to make UKSV more resilient and better able to deal with future upsurges in demand, the Cabinet Office offered us three solutions: 15 Q 26 16 Qq 22, 23; C&AG’s 2023 Report, Figures …

The Cabinet Office was keen to point to UKSV’s use of surge staff from other departments,37 although there were just 13 such staff between January and November 2022 alongside about 50 contingent labour staff (see also Figure 1).38 It said the use of more contingent labour solved the need to fit within wider Civil Service aspirations around headcount numbers, although “by the time you recruit, you vet and you train, it takes a long time.”39 The Cabinet Office expects UKSV to maintain its own h...

The Cabinet Office was keen to point to UKSV’s use of surge staff from other departments,37 although there were just 13 such staff between January and November 2022 alongside about 50 contingent labour staff (see also Figure 1).38 It said …

Recruitment challenges have also hampered progress on the vetting transformation programme. In November 2021, UKSV only managed to fill five out of 44 digital roles despite multiple costly, labour-intensive campaigns, with uncompetitive salaries seen as a key factor. In September 2022, despite a partial exemption for digital roles from the Cabinet Office recruitment freeze, UKSV’s resource modelling still showed a shortfall of 68 full-time equivalents (FTE) for digital roles against a total r...

Recruitment challenges have also hampered progress on the vetting transformation programme. In November 2021, UKSV only managed to fill five out of 44 digital roles despite multiple costly, labour-intensive campaigns, with uncompetitive salaries seen as a key factor. In September …

UKSV has been trying, largely unsuccessfully, to modernise the vetting system since it launched a Vetting Reform programme in 2019.50 UKSV’s Chief Executive said, “if we had a magic wand and we could build a new system tomorrow, we absolutely would”.51 Whenever it has taken full business cases for its £40 million transformation programme to COAB, however, these have been rejected. Three reviews of the programme in 2022 raised concerns across multiple areas of programme management, including t...

UKSV has been trying, largely unsuccessfully, to modernise the vetting system since it launched a Vetting Reform programme in 2019.50 UKSV’s Chief Executive said, “if we had a magic wand and we could build a new system tomorrow, we absolutely …

When asked about her past experiences, UKSV’s chief executive cited governance as the main difference between her experience of running a government change programme compared with running a private sector change programme.54 She said that there was a lot of governance around investment and the change agenda, as UKSV had to ensure that “every customer is comfortable with everything we are planning to change”.55 This was endorsed by the government chief security officer who said the transformat...

When asked about her past experiences, UKSV’s chief executive cited governance as the main difference between her experience of running a government change programme compared with running a private sector change programme.54 She said that there was a lot of …

As part of the Vetting Reform programme, the Cabinet Office planned to replace UKSV’s legacy IT system, the National Security Vetting System, through the Future Vetting System programme, by February 2020 at a cost of £19 million. Failures in project management meant that the programme ran £9 million over budget and resulted in a 47 C&AG’s Report, para 3.5 48 C&AG’s Report, paras 1.2, 2.10 and Footnote 8 49 C&AG’s Report, para 3.15 50 C&AG’s Report, para 3.3 and paras 3.7 to 3.12 51 Q 62 52 C&...

As part of the Vetting Reform programme, the Cabinet Office planned to replace UKSV’s legacy IT system, the National Security Vetting System, through the Future Vetting System programme, by February 2020 at a cost of £19 million. Failures in project …

The Cabinet Office told us that following its bad experience with its first attempt to modernise IT, it was now adopting a more cautious approach to transformation, and that it rejected the business plan for the Vetting Transformation programme on a few occasions because it was “not totally happy with the plan” and wanted to “be sure that this one was going to work”. It accepted that it had been a little optimistic about the achievable rate of transformation, but also pointed out that the nee...

The Cabinet Office told us that following its bad experience with its first attempt to modernise IT, it was now adopting a more cautious approach to transformation, and that it rejected the business plan for the Vetting Transformation programme on …

The Cabinet Office was keen to confirm that it has full customer support for vetting transformation.62 For example, centralised decision making is an important component of the transformation plan whereby UKSV takes the whole decision on clearance rather than allowing departments to make the final decision based on UKSV’s advice.63 The Cabinet Office told us that 70% of all decision are now centralised with customers signed up to this approach.64 It did, however, acknowledge that UKSV may hav...

The Cabinet Office was keen to confirm that it has full customer support for vetting transformation.62 For example, centralised decision making is an important component of the transformation plan whereby UKSV takes the whole decision on clearance rather than allowing …

Defra does not have a strategy or vision needed for its long-term digital transformation. Defra has so far focused on stabilising its legacy applications by seeking to mitigate the biggest risks of cyber-attack or operational failure and is moving towards enhancing and transforming these applications. But it does not yet have a strategy for the transformation of its digital services and is not taking a proactive approach to challenges, such as reducing reliance on paper forms and making appli...

Defra does not have a strategy or vision needed for its long-term digital transformation. Defra has so far focused on stabilising its legacy applications by seeking to mitigate the biggest risks of cyber-attack or operational failure and is moving towards …

Defra is at risk of wasting money on digital services because it has not yet taken decisions on business transformation. In parallel with its work on legacy, Defra is embarking on a fundamental review of the structure of its organisation, including potentially major structural changes to the bodies and organisations that form the Defra Group. Some decisions about digital services need to be taken without delay. But without clarity on what the transformed Defra will look like, it is difficult ...

Defra is at risk of wasting money on digital services because it has not yet taken decisions on business transformation. In parallel with its work on legacy, Defra is embarking on a fundamental review of the structure of its organisation, …

Defra is over-reliant on contractors because it struggles to recruit and retain the people with the digital skills it needs. Defra says it has reduced its reliance on contractors and temporary staff over the last year from 30% to 22%, but this is still too high. CDDO tells us that using some contingent labour is good for flexibility but that it can be up to twice as expensive for some roles. In June 2022, CDDO committed to reducing vacancies in the digital community across government departme...

Defra is over-reliant on contractors because it struggles to recruit and retain the people with the digital skills it needs. Defra says it has reduced its reliance on contractors and temporary staff over the last year from 30% to 22%, …

Defra does not yet know how it will meet Government’s ambitions for digital change within its existing resources. CDDO has agreed a set of challenging commitments with departments, and Defra is confident it can meet these. However, Defra received only 58% of the funding it bid for in the 2021 Spending Review and cannot deliver all its aspirations with the funding it has available. For example, it aims to digitise all of its 20 most used services but none of this work is yet funded. Defra has ...

Defra does not yet know how it will meet Government’s ambitions for digital change within its existing resources. CDDO has agreed a set of challenging commitments with departments, and Defra is confident it can meet these. However, Defra received only …

We welcome CDDO’s efforts to establish strong cross-government co-operation and collaboration to identifying and addressing legacy IT issues. Since our December 2021 report on the Challenges in implementing digital change, CDDO has worked with all departments to establish a common methodology across departments for prioritising legacy risk. It has developed a framework to identify vulnerable legacy systems and tested it with six departments including Defra. Covering 105 digital systems across...

We welcome CDDO’s efforts to establish strong cross-government co-operation and collaboration to identifying and addressing legacy IT issues. Since our December 2021 report on the Challenges in implementing digital change, CDDO has worked with all departments to establish a common …

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Food, Environment & Rural Affairs (Defra) and the Central Digital & Data Office (CDDO) at the Cabinet Office about modernising ageing digital services.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Food, Environment & Rural Affairs (Defra) and the Central Digital & Data Office (CDDO) at the Cabinet Office about modernising ageing …

The NAO also found that Defra did not expect to resolve all its legacy issues until 2030.15 For example, Defra told us that it had worked with the Central Digital & Data Office (CDDO) to establish which services were most critical or had the largest number of users. It explained that, of the top 75 public-facing applications identified using this classification, 12 were within Defra.16 In January 2023, Defra told us that, of Defra’s 12 systems with the highest volume of public or business use...

The NAO also found that Defra did not expect to resolve all its legacy issues until 2030.15 For example, Defra told us that it had worked with the Central Digital & Data Office (CDDO) to establish which services were most …

We asked Defra whether the applications in extended support or hyper-care sat within particular parts of the Defra Group. Defra told us that legacy systems were typically located in areas where the legislation was older, which tended to be in the more long- running delivery areas for Defra Group. Defra explained that it had invested in replacing IT systems to align with newer legislation created for exiting the EU and had created new IT systems, such as for borders and trade, and the future f...

We asked Defra whether the applications in extended support or hyper-care sat within particular parts of the Defra Group. Defra told us that legacy systems were typically located in areas where the legislation was older, which tended to be in …

When we examined the challenges in implementing digital change in December 2021, we concluded that there was a large gap between the demand for, and supply of, the digital specialists that government needed, and that it was hard to get the right balance of in-house and outsourced skills.24 In response, in February 2022, CDDO committed to creating 14 C&AG’s Report, paras 9, 18, 22 15 C&AG’s Report, paras 9, 22 16 Q 24 17 Q 25 18 Qq 13–14 and C&AG Report, figure 3 19 Qq 19–20 20 Qq 13–14 21 Qq ...

When we examined the challenges in implementing digital change in December 2021, we concluded that there was a large gap between the demand for, and supply of, the digital specialists that government needed, and that it was hard to get …

There is still a digital skills shortage across UK industry and the public sector and, in December 2022, the NAO found that Defra had found it difficult to recruit and retain people with the right digital skills. Between October 2021 and October 2022, Defra ran recruitment campaigns for 244 digital, data and technology roles but could not fill 31% of these roles.26 CDDO told us that this problem was not unique to Defra: in October 2022, 14% of roles in the digital and data community were vaca...

There is still a digital skills shortage across UK industry and the public sector and, in December 2022, the NAO found that Defra had found it difficult to recruit and retain people with the right digital skills. Between October 2021 …

Defra told us that the digital, data and technology pay framework, which allowed supplements to be paid based on capability for specific digital roles, helped it to attract digital staff. It expected forthcoming changes to the framework, such as changes to career progression and the breadth of roles covered, to help further recruit the staff it needs. We asked what Defra had done to make the roles as attractive as possible, for example through hybrid working. Defra told us that it had used th...

Defra told us that the digital, data and technology pay framework, which allowed supplements to be paid based on capability for specific digital roles, helped it to attract digital staff. It expected forthcoming changes to the framework, such as changes …

Defra told us that it had so far focused on stabilising its legacy applications to reduce the risks of cyber-attack or operational failure and on developing and implementing the IT systems needed for EU Exit, rather than work to reduce reliance on paper forms or to make applications widely available on mobile phones.31 It explained that stabilising applications often involved moving them from older data centres onto modern cloud- based platforms. Once the risks have been diminished, Defra tol...

Defra told us that it had so far focused on stabilising its legacy applications to reduce the risks of cyber-attack or operational failure and on developing and implementing the IT systems needed for EU Exit, rather than work to reduce …

Many different technologies are used across Defra as a consequence of how the Defra Group has grown and changed over time, and how systems were originally developed by different organisations within the Group, which each had their own approach to technology. Defra does not yet have agreed standards for IT systems across the Department and its organisation that would ensure they are developed in a more consistent way across the Group. It told the NAO that, where work to address legacy IT syste...

Many different technologies are used across Defra as a consequence of how the Defra Group has grown and changed over time, and how systems were originally developed by different organisations within the Group, which each had their own approach to …

In parallel with its work on address legacy IT systems, Defra told us it was embarking on a fundamental business transformation process, including potentially major structural changes to the Defra Group. Defra explained that this will include considering how it could reduce duplication across the Group.36 For example, it explained that across Defra Group, many bodies issued licenses and permits and there were 37 different IT applications that supported this. It explained that it thought that ...

In parallel with its work on address legacy IT systems, Defra told us it was embarking on a fundamental business transformation process, including potentially major structural changes to the Defra Group. Defra explained that this will include considering how it …

However, Defra has not yet developed a clear vision for how its business will operate after transformation. Business transformation and digital transformation are closely linked but without clarity on what the transformed Defra will look like, it is difficult for its digital specialists to prepare. Decisions taken now may need to be reversed when the new Group structure is implemented and this could mean systems have to be rebuilt.38 Given this, we asked Defra how it could design a digital pr...

However, Defra has not yet developed a clear vision for how its business will operate after transformation. Business transformation and digital transformation are closely linked but without clarity on what the transformed Defra will look like, it is difficult for …

We also asked Defra how it would ensure that its approach did not result in the waste of taxpayers’ money. Defra explained that the majority of its transformation programme was focused on business process, how people used business processes, and the way that is governed. It assured us that it will not invest in building new digital systems that will have to be rebuilt to fit its new business model. Defra explained that its approach was to invest in common components that can provide the agili...

We also asked Defra how it would ensure that its approach did not result in the waste of taxpayers’ money. Defra explained that the majority of its transformation programme was focused on business process, how people used business processes, and …

In June 2022, CDDO published a Roadmap which set out a common cross-government vision for digital and data by 2025. It contained a set of challenging commitments across six strategic areas known as missions, which CDDO told us all departments signed up to and had agreed to meet out of their own budgets. For example, in the Roadmap, CDDO stated that it was working with departments to ensure that at least 50 of the top 75 highest priority customer services across government reach a “great” stan...

In June 2022, CDDO published a Roadmap which set out a common cross-government vision for digital and data by 2025. It contained a set of challenging commitments across six strategic areas known as missions, which CDDO told us all departments …

In the 2021 Spending Review, Defra received £871 million for digital investment for 2021–2025, of which £366 million was to address legacy issues and bring its systems up to date. The remainder was for investment in the Future Farming and Countryside and borders and trade programmes which were needed to support EU Exit as well as flood- related IT.45 Defra received 58% of the funding it bid for in the 2021 Spending Review. According to Defra, this was sufficient funding to resolve some major ...

In the 2021 Spending Review, Defra received £871 million for digital investment for 2021–2025, of which £366 million was to address legacy issues and bring its systems up to date. The remainder was for investment in the Future Farming and …

As part of its review of legacy applications, Defra told us it had decommissioned over 30 IT systems because more modern alternatives were available. It explained that this had improved its internal efficiency and created cost savings. Defra estimated that it needs to spend £726 million on modernising legacy services between 2021 and 2025. Defra told us that it considered that there was scope for saving £20–25 million per year if 42 Qq 50–51; Central Digital and Data Office, Transforming for ...

As part of its review of legacy applications, Defra told us it had decommissioned over 30 IT systems because more modern alternatives were available. It explained that this had improved its internal efficiency and created cost savings. Defra estimated that …

We asked CDDO its assessment of government’s approach to digitisation. CDDO told us it had been delighted with the collaboration it had received from government departments as part of putting together the digital change road map. It explained that, while there was still more to do, it was “considerably more optimistic now as we go forward”.51 CDDO pointed to what it saw as a huge opportunity for not just better use of public money, but a far better experience for citizens. We therefore asked ...

We asked CDDO its assessment of government’s approach to digitisation. CDDO told us it had been delighted with the collaboration it had received from government departments as part of putting together the digital change road map. It explained that, while …

In December 2021, we examined challenges in implementing digital change. We concluded that there was no clear plan to replace or modernise legacy systems and data that were critical to service provision but were often old, unsupportable, vulnerable and a constraint on transformation. We recommended that CDDO should work with departments to map legacy systems across government to document what is there, why it exists and how critical it is. We recommended that, by the end of 2022, the CDDO sho...

In December 2021, we examined challenges in implementing digital change. We concluded that there was no clear plan to replace or modernise legacy systems and data that were critical to service provision but were often old, unsupportable, vulnerable and a …

The Cabinet Office did not produce an overarching business case for the Shared Services Strategy, which has hindered progress. HM Treasury’s guidance to government departments states that a business case should be used to support all major programmes and projects considered by the Cabinet Office. The Cabinet Office did not follow this guidance and instead produced a “Case for Change” which lacked the requisite level of detail on costs, benefits and risk. The Cabinet Office says it did not pro...

The Cabinet Office did not produce an overarching business case for the Shared Services Strategy, which has hindered progress. HM Treasury’s guidance to government departments states that a business case should be used to support all major programmes and projects …

Departments do not have the funding they need to deliver on their Shared Services Strategy. There are both short- and long-term funding uncertainties to delivering the strategy. In the short-term, HM Treasury approved a funding envelope of £300 million to support the clusters to deliver the strategy and to address the risk that 6 Government Shared Services departments could be left with unstable and unsupported systems in the interim. This covers the 2021 Spending Review period to 2024–25. De...

Departments do not have the funding they need to deliver on their Shared Services Strategy. There are both short- and long-term funding uncertainties to delivering the strategy. In the short-term, HM Treasury approved a funding envelope of £300 million to …

The benefits of the strategy have not been properly quantified. The Cabinet Office did not calculate anticipated benefits of the refreshed strategy, and instead has relied on clusters developing cost and benefits figures as parts of their own separate business cases. These business cases have identified potential benefits of £2 billion at an estimated cost of £0.9 billion. However, clusters have not calculated these figures on a consistent basis, making it difficult to come to a clear financi...

The benefits of the strategy have not been properly quantified. The Cabinet Office did not calculate anticipated benefits of the refreshed strategy, and instead has relied on clusters developing cost and benefits figures as parts of their own separate business …

The Cabinet Office has yet to start monitoring overall progress of the government’s Shared Services Strategy. The Cabinet Office has no performance indicators that measure strategy progress. Shared services performance measures consider only business-as-usual service provision such as payroll accuracy, invoice accuracy, end- user satisfaction, government transfers and mobility of services, as well as a further 40 measures. These measures do not allow the Cabinet Office to understand the progr...

The Cabinet Office has yet to start monitoring overall progress of the government’s Shared Services Strategy. The Cabinet Office has no performance indicators that measure strategy progress. Shared services performance measures consider only business-as-usual service provision such as payroll accura

There are lessons to be learned from this strategy that will be applicable to future government projects. We have often reported on the challenges that government faces in delivering cross-departmental initiatives, programmes and strategies. A number of these issues continue to cause problems for the current iteration of the Shared Services Strategy. The Cabinet Office says that clusters have worked to learn lessons from previous strategies, and there has been a noticeable change in pace sinc...

There are lessons to be learned from this strategy that will be applicable to future government projects. We have often reported on the challenges that government faces in delivering cross-departmental initiatives, programmes and strategies. A number of these issues continue …

The government is just over four years into its latest Shared Services Strategy. Since the Cabinet Office refreshed it in 2021, introducing the ‘cluster’ delivery model, there has been a step change in progress. The ‘Defence’ and ‘Overseas’ clusters have begun to implement new systems. The departments in the ‘Matrix’, ‘Synergy’ and ‘Unity’ clusters have obtained business case approval, which will allow them to access funding for their shared services plans. Common data standards have been agr...

The government is just over four years into its latest Shared Services Strategy. Since the Cabinet Office refreshed it in 2021, introducing the ‘cluster’ delivery model, there has been a step change in progress. The ‘Defence’ and ‘Overseas’ clusters have …

The Cabinet Office told us that the strategy is on track.8 However, several risks remain to its delivery. For example, the Department of Work & Pensions set out three main risks for the ‘Synergy’ shared services cluster: funding uncertainties; a tight timetable; and realising the potential benefits of the strategy. On the timetable, the Department told us that the cluster is looking to extend its contract with its current business process services (BPS) provider, which runs out in October 202...

The Cabinet Office told us that the strategy is on track.8 However, several risks remain to its delivery. For example, the Department of Work & Pensions set out three main risks for the ‘Synergy’ shared services cluster: funding uncertainties; a …

When we last reported on government shared services in 2016, we recommended that the then current strategy should be supported by a realistic and complete business case that was updated regularly.12 This is in line with HM Treasury guidance that all major programmes and projects considered by the Cabinet Office should be supported by a comprehensive business case.13 Without a business case, important aspects such as governance, costs and benefits risk being poorly articulated, all of which un...

When we last reported on government shared services in 2016, we recommended that the then current strategy should be supported by a realistic and complete business case that was updated regularly.12 This is in line with HM Treasury guidance that …

The Cabinet Office told us that it did not produce a business case for its current strategy as it believed time was of the essence in terms of both cost opportunities and the fact that old systems were coming to the end of their contracts. It did not want to “put the cart before the horse” in terms of the detailed work needed on costs and benefits and felt that this would be better done at the cluster level.15 Instead, it produced a “Case for Change” which lacked the requisite level of detail...

The Cabinet Office told us that it did not produce a business case for its current strategy as it believed time was of the essence in terms of both cost opportunities and the fact that old systems were coming to …

The Cabinet Office plans to revisit its “Case for Change” now that clusters have completed their own individual business cases, updating this to include a more detailed position on the costs and benefits of the strategy.19 We noted that the production of a central business case at the start of the strategy would have been helpful in managing risk, reassuring HM Treasury and disseminating learning and best practice, all of which would have helped to save taxpayer money.20 Funding

The Cabinet Office plans to revisit its “Case for Change” now that clusters have completed their own individual business cases, updating this to include a more detailed position on the costs and benefits of the strategy.19 We noted that the …

Although HM Treasury rejected cluster bids for funding, it approved a funding envelope of £300 million to cover the period up to 2024–25. This was to support these clusters to deliver the strategy and to address the risk that departments could be left with unstable and unsupported systems in the interim.21 The Cabinet Office told us that it considered these bids were ambitious, both in terms of the amount of central funding that could be allocated and the length of time it would take to go th...

Although HM Treasury rejected cluster bids for funding, it approved a funding envelope of £300 million to cover the period up to 2024–25. This was to support these clusters to deliver the strategy and to address the risk that departments …

The Cabinet Office’s original expectation was that the strategy would lead to savings of 10% to 15% in operating costs, based on what other large public and private sector organisations across the world had been able to achieve.26 It did not calculate specific programme-wide costs and benefits from the outset. Its benefits database included written descriptions of benefits but did not quantify savings.27 Instead, it adopted a bottom-up approach with cost and benefits figures developed as part...

The Cabinet Office’s original expectation was that the strategy would lead to savings of 10% to 15% in operating costs, based on what other large public and private sector organisations across the world had been able to achieve.26 It did …

In autumn 2022, the business cases of three clusters (‘Synergy’, ‘Matrix’ and ‘Unity’) identified potential benefits (both “cashable” and “non-cashable”) of £2 billion at an estimated cost of £0.9 billion.29 However, the three clusters have not calculated these figures on a consistent basis. For example, clusters have different definitions for what constitutes “cashable” savings and have calculated them over different timescales.30 In addition, the ‘Defence’ cluster has yet to provide any inf...

In autumn 2022, the business cases of three clusters (‘Synergy’, ‘Matrix’ and ‘Unity’) identified potential benefits (both “cashable” and “non-cashable”) of £2 billion at an estimated cost of £0.9 billion.29 However, the three clusters have not calculated these figures on …

The Cabinet Office told us that it is working with HM Treasury and all five clusters to revise and externally validate these estimates and obtain a benefits figure from the ‘Defence’ cluster. It said that it is working to ensure that costs and benefits are calculated on a consistent and comparable basis by all clusters, to strengthen their business cases for delivery.32 Part of this work includes examining the “non-cashable” benefits, such as resource management, productivity, and better repo...

The Cabinet Office told us that it is working with HM Treasury and all five clusters to revise and externally validate these estimates and obtain a benefits figure from the ‘Defence’ cluster. It said that it is working to ensure …

The Cabinet Office has no performance indicators that measure progress of the Shared Services Strategy.34 When asked what metrics were used to monitor progress of the strategy, the Cabinet office told us that there are three elements to this: two that are currently underway and one that it is working on. Firstly, it is measuring business as usual service provision. Performance measures include payroll accuracy, invoice accuracy, end- user satisfaction, government transfers and mobility of ser...

The Cabinet Office has no performance indicators that measure progress of the Shared Services Strategy.34 When asked what metrics were used to monitor progress of the strategy, the Cabinet office told us that there are three elements to this: two …

The final element that the Cabinet Office is working on is how to identify and implement measures that will drive quality and performance in the future.37 It explained that each cluster is accountable for delivery and has its own team tracking progress, but it acknowledged the importance of being able to compare clusters and support those who are falling behind. It told us that it plans to use information from project and programme reports to produce measurements and track each cluster’s prog...

The final element that the Cabinet Office is working on is how to identify and implement measures that will drive quality and performance in the future.37 It explained that each cluster is accountable for delivery and has its own team …

Once the new services and updated technology are in place, the Cabinet Office said it plans to revise the business-as-usual performance measures, many of which are decades old, in order to utilise more modern measurements such as the net promoter score, a metric that assesses the user’s likelihood of recommending the product or service.39 It plans to introduce benchmarks that are on a par with external organisations, including private sector organisations and governmental bodies in other nati...

Once the new services and updated technology are in place, the Cabinet Office said it plans to revise the business-as-usual performance measures, many of which are decades old, in order to utilise more modern measurements such as the net promoter …

We have often highlighted the various challenges that government faces in delivering cross-departmental initiatives, programmes and strategies. These challenges include measuring and reporting of progress, common data, getting departmental buy- in, and achieving the right balance between central and departmental responsibilities, coordination, leadership and ownership. Examples include our 2022 reports on the use of evaluation and modelling across government, public sector greenhouse gas emis...

We have often highlighted the various challenges that government faces in delivering cross-departmental initiatives, programmes and strategies. These challenges include measuring and reporting of progress, common data, getting departmental buy- in, and achieving the right balance between central and

The Cabinet Office said that each cluster has undertaken a lessons learned exercise. For example, the ‘Synergy’ cluster’s outline business case explicitly goes through the lessons learned and says how those are addressed in their programme.42 The Department for Work & Pensions noted that one of the lessons learned from previous shared services strategies was the lack of alignment around data configuration. Its cluster now has a common top 50 data sets, which align to the work that the Cabinet...

The Cabinet Office said that each cluster has undertaken a lessons learned exercise. For example, the ‘Synergy’ cluster’s outline business case explicitly goes through the lessons learned and says how those are addressed in their programme.42 The Department for Work …

There has been a noticeable change in pace since the introduction of the 2021 strategy refresh.45 The Cabinet Office highlighted what was different, namely that government functions such as HR, finance and commercial had taken the lead and set standards for departments to use. It explained that departments were working together in clusters and accepting this leadership, whereas previously departments held their own views on how they would like to use these functions.46 The Department for Work...

There has been a noticeable change in pace since the introduction of the 2021 strategy refresh.45 The Cabinet Office highlighted what was different, namely that government functions such as HR, finance and commercial had taken the lead and set standards …

The BBC faces a significant challenge in a very competitive market to recruit and retain staff with the right digital skills. The BBC had a 23% staff turnover rate in its digital product group as of June 2022. Shortages of digital skills are an economy-wide challenge that is not unique to the BBC, and we have regularly heard of similar challenges across government itself, for example with our recent inquiry into the defence digital strategy. The BBC reports that these challenges became more c...

The BBC faces a significant challenge in a very competitive market to recruit and retain staff with the right digital skills. The BBC had a 23% staff turnover rate in its digital product group as of June 2022. Shortages of …

We raised the question of education for people, typically older people, who are not familiar or confident with adopting what may be new technology to them. The BBC stressed its universality obligation to ensure that content is accessible. It also said it was critical that there was focus and prioritisation of its limited resources to ensure it continued to serve all its audiences, young and old.14 The BBC told us it had a huge role to play in education, 6 C&AG’s Report, paras 3, 1.2 7 C&AG’s ...

We raised the question of education for people, typically older people, who are not familiar or confident with adopting what may be new technology to them. The BBC stressed its universality obligation to ensure that content is accessible. It also …

We raised a concern about the lack of sufficient detail to support the BBC’s digital investment plan, for example around how savings will be achieved, what happens if savings targets are not met, or whether additional borrowing would be required.30 The BBC said it was helpful to have had those points highlighted. It told us that it was working through the budgeting process and building detailed budget plans, and that the budget process it was currently in would refine the detail.31 The BBC al...

We raised a concern about the lack of sufficient detail to support the BBC’s digital investment plan, for example around how savings will be achieved, what happens if savings targets are not met, or whether additional borrowing would be required.30 …

Although the BBC has managed to successfully recruit and retain a number of highly skilled individuals to lead its digital teams, overall it has a shortage of specialist digital staff. In common with other organisations, the BBC has experienced technology staffing shortages and high turnover of staff. This is partly due to the BBC’s pay levels being lower than some other potential employers for technology professionals. This is despite the BBC keeping its pay ranges under regular review, incl...

Although the BBC has managed to successfully recruit and retain a number of highly skilled individuals to lead its digital teams, overall it has a shortage of specialist digital staff. In common with other organisations, the BBC has experienced technology …

The product group in the BBC—responsible for developing and delivering the BBC’s audience-facing digital products—accounts for 5.7% of the total BBC public service pay bill.35 In its product group the BBC had 23% staff turnover as of June 2022. This high number of vacancies has slowed technical development. The number of vacancies in the search team, for example, has hindered the BBC’s ability to develop its search function further.36

The product group in the BBC—responsible for developing and delivering the BBC’s audience-facing digital products—accounts for 5.7% of the total BBC public service pay bill.35 In its product group the BBC had 23% staff turnover as of June 2022. This …

The BBC told us that last year had been really difficult for attracting people. It cited the particular consequences of the covid pandemic for the technology market, with international organisations starting to offer remote working contracts, giving potential employees, for example in the Salford area, more options, with salaries rising fast, and recruitment happening at a faster pace. The BBC said it was in a much better position this year compared to last, with attrition trending down and r...

The BBC told us that last year had been really difficult for attracting people. It cited the particular consequences of the covid pandemic for the technology market, with international organisations starting to offer remote working contracts, giving potential employees, for …

We are also concerned about the impact of inflation on the Plan’s delivery, particularly the Department’s ability to obtain the skills required. The Department told us that it and its suppliers do not have enough data scientists, software engineers or project managers. This puts at risk the delivery of a range of information, communication, and technology programmes.53 This risk may increase if staff leave due to below-inflation pay rises. The Department has offered staff a pay rise of 3.75% ...

We are also concerned about the impact of inflation on the Plan’s delivery, particularly the Department’s ability to obtain the skills required. The Department told us that it and its suppliers do not have enough data scientists, software engineers or …

Despite HMPO’s work to prepare for increased demand for passports, poor performance by contractors exacerbated issues for customers. We are concerned that in some cases it was clear that the performance of external contractors was deteriorating as early as March 2022. Sopra Steria, responsible for opening and scanning paper applications and supporting documentation, did not achieve its service levels targets for five months in 2022. Similarly, Teleperformance, responsible for the customer sup...

Despite HMPO’s work to prepare for increased demand for passports, poor performance by contractors exacerbated issues for customers. We are concerned that in some cases it was clear that the performance of external contractors was deteriorating as early as March …

We remain to be convinced that HMPO’s digital transformation programme will be completed by 2025. Many of HMPO’s difficulties meeting the demand in 2022 stemmed from, or were exacerbated by, issues with its transformation programme. The future of HMPO’s operations rely on successfully completing the programme, but it is already delayed. HMPO’s plans to complete it in 2025 appear ambitious, particularly given the Department’s track record of delivering digital change and the Red rating awarded...

We remain to be convinced that HMPO’s digital transformation programme will be completed by 2025. Many of HMPO’s difficulties meeting the demand in 2022 stemmed from, or were exacerbated by, issues with its transformation programme. The future of HMPO’s operations …

We are disappointed by the Department and HMPO’s lack of ambition in their plans to meet demand for passports in 2023 and beyond. HMPO estimates that there are still three million customers who did not renew or apply for passports during the pandemic and expects a level of demand in 2023 similar to 2022. This pattern of demand will re-emerge every 10 years as passports expire. HMPO also believes there may be a more fundamental shift in customer application patterns following the pandemic, wit...

We are disappointed by the Department and HMPO’s lack of ambition in their plans to meet demand for passports in 2023 and beyond. HMPO estimates that there are still three million customers who did not renew or apply for passports …

Sopra Steria Ltd. failed to meet its service level targets for five months from March to July 2022. Its worst performance was in April, when an average of just 42% of applications were processed within the target timescale, and it sometimes took up to two and a half weeks to register an application in HMPO’s digital system.32 HMPO told us that Sopra Steria Ltd. had experienced difficulties recruiting staff, and that it had improved its performance by the end of July. HMPO also explained that ...

Sopra Steria Ltd. failed to meet its service level targets for five months from March to July 2022. Its worst performance was in April, when an average of just 42% of applications were processed within the target timescale, and it …

HMPO’s ability to process applications efficiently hinges on the successful delivery of its digital transformation programme, which began in 2016 and was originally expected to be completed by March 2022. During the COVID-19 pandemic, the programme’s scope had to be quickly expanded to accommodate staff working from home, which contributed to delays. At the time of our evidence session, HMPO expected to complete the transformation programme in the 2024–25 financial year, although it acknowled...

HMPO’s ability to process applications efficiently hinges on the successful delivery of its digital transformation programme, which began in 2016 and was originally expected to be completed by March 2022. During the COVID-19 pandemic, the programme’s scope had to be …

The scope of the programme has increased significantly since it began and in 2021 it was added to the Government Major Projects Portfolio. In August 2022, the Infrastructure and Projects Authority (IPA) rated the programme Red, and recommended that the programme should not proceed to the next phase until HMPO had managed risks to an acceptable level. It made seven recommendations to HMPO, one of which was rated critical and four were rated as essential.38 We asked the Department what progress...

The scope of the programme has increased significantly since it began and in 2021 it was added to the Government Major Projects Portfolio. In August 2022, the Infrastructure and Projects Authority (IPA) rated the programme Red, and recommended that the …

HMPO’s ultimate plan is for its digital system to be able to process paper applications, by scanning these onto the system. While it wants to reduce the amount of paper-based applications, it told us that it did not plan to completely remove the option for customers to apply on paper, as some customers may not be able to apply digitally.41 However, we challenged HMPO and the Department on the risk that its data storage contract for its paper-based system is due to expire in 2024, prior to the...

HMPO’s ultimate plan is for its digital system to be able to process paper applications, by scanning these onto the system. While it wants to reduce the amount of paper-based applications, it told us that it did not plan to …

The Government should, in its response to this Report, tell us how it plans to monitor, evaluate and report on progress in delivering “in-house STEM capability” across public services, including the NHS and schools.

The Government should, in its response to this Report, tell us how it plans to monitor, evaluate and report on progress in delivering “in-house STEM capability” across public services, including the NHS and schools. Type: recommendation | Number: 1 | …

The DVLA’s efforts to encourage customers who can use online services to do so are not sufficient. Some customers need the option of applying for a driving licence using a paper form, but the DVLA assesses that around 60% of customers who apply on paper could have applied online. In the periods during the pandemic when customers who applied on paper experienced substantial delays, almost all customers without notifiable medical conditions who applied online had their applications processed wi...

The DVLA’s efforts to encourage customers who can use online services to do so are not sufficient. Some customers need the option of applying for a driving licence using a paper form, but the DVLA assesses that around 60% of …

The Department and the DVLA have not taken a strategic approach to maintaining and improving the infrastructure, estate and processes that the DVLA’s performance depends on. The Department has taken a hands-off approach to the DVLA, failing to ensure that its services are periodically reviewed and improved through timely adoption of modern working practices and up-to- date technology. Consequently, the driving licence application process has become inefficient through outmoded working practic...

The Department and the DVLA have not taken a strategic approach to maintaining and improving the infrastructure, estate and processes that the DVLA’s performance depends on. The Department has taken a hands-off approach to the DVLA, failing to ensure that …

The DVLA told us it has recently modernised its telephony systems, so in future it should be able to cope better with surges in demand. For example, with the new system it can more easily increase the number of telephone lines available. However, the DVLA cautioned that installing a new system on such a large scale is complex and challenging and it is therefore taking time to install.25 17 Qq 55, 73–75 18 Qq 59, 106 19 Q 103; C&AG’s Report, paras 2.14–2.15, Figure 8 20 DLB0053 21 Q 106 22 Qq ...

The DVLA told us it has recently modernised its telephony systems, so in future it should be able to cope better with surges in demand. For example, with the new system it can more easily increase the number of telephone …

The DVLA told us it estimates that about 60% of the paper-based applications it receives could have been made online, and so those customers experienced longer waiting times than they needed to. During the pandemic, the DVLA investigated the reasons for this and found that some people do not trust putting their personal data into an online application. The DVLA adapted its publicity campaign to try to give people reassurance that its online services are safe and secure.29

The DVLA told us it estimates that about 60% of the paper-based applications it receives could have been made online, and so those customers experienced longer waiting times than they needed to. During the pandemic, the DVLA investigated the reasons …

We are concerned that the DVLA does not have a more active strategy for encouraging customers to switch from paper to online services, relying on customers to decide themselves to make this transition rather than proactively encouraging and supporting them do so.30 Although the DVLA told us it has seen a huge shift to digital over the last four or five years, the NAO found that the volume of mail arriving at the DVLA has decreased only by 6% between 2019–20 and 2022–23.31 The DVLA told us tha...

We are concerned that the DVLA does not have a more active strategy for encouraging customers to switch from paper to online services, relying on customers to decide themselves to make this transition rather than proactively encouraging and supporting them …

We also heard that the DVLA’s decisions often require information from GPs and other medical professionals, which is requested and returned using paper documentation. 40 Q 47; Letter from DVLA to PAC dated 8 December; Driver & Vehicle Licensing Agency, DVLA annual report and accounts 2019 to 2020, HC 441, July 2020, page 93 (viewed on 6 December 2022); Driver & Vehicle Licensing Agency, DVLA annual report and accounts 2021 to 2022, HC 590, July 2022, page 91 (viewed on 6 December 2022) 41 Qq ...

We also heard that the DVLA’s decisions often require information from GPs and other medical professionals, which is requested and returned using paper documentation. 40 Q 47; Letter from DVLA to PAC dated 8 December; Driver & Vehicle Licensing Agency, …

The evidence we heard from the Department suggested to us that it has taken a hands- off approach to the DVLA, and not ensured that the DVLA’s services are periodically reviewed and improved through timely adoption of modern working practices and up- to-date technology. For example, when we asked what the Department was doing to help the DVLA speed up the processing of applications from customers with relevant medical conditions, the Permanent Secretary acknowledged that the area was a challe...

The evidence we heard from the Department suggested to us that it has taken a hands- off approach to the DVLA, and not ensured that the DVLA’s services are periodically reviewed and improved through timely adoption of modern working practices …

The pandemic exposed weaknesses in the DVLA’s current operations which rely heavily on staff working on site and IT systems that hold customers’ personal information which staff can only access on site. Currently, remote working is limited, particularly for operational staff working on driving licences who have to be on site to work. The DVLA told us that at present, almost 60% of staff are working entirely on site as they have been doing throughout the COVID-19 pandemic, while the other 40% ...

The pandemic exposed weaknesses in the DVLA’s current operations which rely heavily on staff working on site and IT systems that hold customers’ personal information which staff can only access on site. Currently, remote working is limited, particularly for operational …

We challenged the DVLA and the Department about their strategy for future of the DVLA. The Department told us that conversations are happening about what the future of driving licence services should look like. We heard that the DVLA will need to become more resilient to anticipated changes in the profile of its customers as the population ages, and respond to effect on road safety measures brought on by the potential growth in autonomous vehicles. Nevertheless, we did not feel that the DVLA ...

We challenged the DVLA and the Department about their strategy for future of the DVLA. The Department told us that conversations are happening about what the future of driving licence services should look like. We heard that the DVLA will …

Despite the urgency and ambition of its digital strategy, the Department does not yet have a delivery plan to measure and track progress. The Department’s digital strategy sets out how it wants to share and exploit data effectively for information advantage and develop a skilled and empowered digital function by 2025. It will be difficult for the Department to achieve this given the scale of activity across more than 90 digital projects in its portfolio, its large legacy IT estate, and wide- ...

Despite the urgency and ambition of its digital strategy, the Department does not yet have a delivery plan to measure and track progress. The Department’s digital strategy sets out how it wants to share and exploit data effectively for information …

The Department faces a considerable challenge to recruit the specialist digital skills that its strategy relies on. We have reported previously on the shortage of specialist digital skills in the marketplace and how many government departments are struggling to overcome this long-standing challenge. Indeed, the Department identifies getting the right skills as a key factor in whether it will succeed or fail to achieve its goals by 2025. The skills it needs are wide-ranging and include data an...

The Department faces a considerable challenge to recruit the specialist digital skills that its strategy relies on. We have reported previously on the shortage of specialist digital skills in the marketplace and how many government departments are struggling to overcome …

The Department is struggling to deliver its largest, most transformational digital programmes. The Infrastructure and Projects Authority’s (IPA’s) most recent public reporting from March 2022 shows three of the Department’s major digital programmes have significant issues (‘amber’) and two are unachievable (‘red’). These are the Department’s most complex and transformational digital programmes, which it needs to get right if its strategy is to succeed. The Department accepts its performance u...

The Department is struggling to deliver its largest, most transformational digital programmes. The Infrastructure and Projects Authority’s (IPA’s) most recent public reporting from March 2022 shows three of the Department’s major digital programmes have significant issues (‘amber’) and two are …

The Department’s budget is under considerable pressure, and this may make some planned, future digital activity unaffordable. As inflation rises, the purchasing power of the Department’s existing budget falls. The Department is starting to see pressure build on its pay settlements and in the cost of raw materials, meaning it may be hard to deliver its digital strategy as originally planned. The Department’s longer-term funding position will only become clearer following the refresh of the Int...

The Department’s budget is under considerable pressure, and this may make some planned, future digital activity unaffordable. As inflation rises, the purchasing power of the Department’s existing budget falls. The Department is starting to see pressure build on its pay …

In its report, the NAO draws attention to the slow progress wider government and the Department have made with previous digital strategies.13 We wanted to know why the Department thinks its most recent strategy will succeed, given that it has been so difficult in the past. The Department reflected that it is now starting to understand how digital technology can affect its ability to win, and that this means it has become an agenda for the whole of Defence. The Department explained that, for t...

In its report, the NAO draws attention to the slow progress wider government and the Department have made with previous digital strategies.13 We wanted to know why the Department thinks its most recent strategy will succeed, given that it has …

In its digital strategy, the Department sets itself three strategic outcomes to achieve. By 2025 it wants to share data seamlessly, use it effectively to gain advantage, and develop a 7 C&AG’s Report, para 2 8 Q 13 9 Ministry of Defence, digital strategy for Defence: Delivering the backbone and unleashing the power of Defence’s data, April 2021 10 Q 52 11 Q 66–69 12 Qq 12–13, 66–68; TDS0004 13 C&AG’s Report, para 1.13 14 Qq 57–60 15 Q 52 16 Q 60 17 Qq 19–20 10 The Defence digital strategy ski...

In its digital strategy, the Department sets itself three strategic outcomes to achieve. By 2025 it wants to share data seamlessly, use it effectively to gain advantage, and develop a 7 C&AG’s Report, para 2 8 Q 13 9 Ministry …

The NAO reported that the Department’s strategy is consistent with good practice across government. For example, its strategy recognises data as a strategic asset and that people and processes are as important as technology to successful digital change.20 However, the NAO also found that the Department lacks a complete picture of its progress against its strategy and recommended that the Department immediately create a clear delivery plan for the strategy. We asked the Department how it inten...

The NAO reported that the Department’s strategy is consistent with good practice across government. For example, its strategy recognises data as a strategic asset and that people and processes are as important as technology to successful digital change.20 However, the …

We have reported previously that there is a large gap between the demand and supply of the digital specialists that government needs.24 We found that government is yet to make meaningful progress overcoming this long-standing challenge, which often leaves it reliant on contractors.25 We pressed the Department on this point and they concurred that the availability of technology skills continues to be a problem for the whole UK economy. We heard from the Department that its current digital work...

We have reported previously that there is a large gap between the demand and supply of the digital specialists that government needs.24 We found that government is yet to make meaningful progress overcoming this long-standing challenge, which often leaves it …

However, the National Audit Office reported that the Department finds it difficult to recruit and retain digital specialist talent.31 We were interested in what is stopping the Department from getting the skills it needs; for example, its ability to pay the market rate for digital specialists. The Department acknowledged that it does not expect to compete with the private sector on pay. However, the Department said it is starting to extend government’s common digital pay framework across the ...

However, the National Audit Office reported that the Department finds it difficult to recruit and retain digital specialist talent.31 We were interested in what is stopping the Department from getting the skills it needs; for example, its ability to pay …

We asked how the Department intends to perform better than the market, which it needs to do if it is to overcome the lack of supply of digital specialists. The Department told us that it has focused heavily on its brand and giving people access to interesting and innovative areas of work to develop their skills.35 It found that emphasising this in its job adverts increased the number of applicants, in one case by up to 20 times.36 We were keen to understand how the number of applicants is cha...

We asked how the Department intends to perform better than the market, which it needs to do if it is to overcome the lack of supply of digital specialists. The Department told us that it has focused heavily on its …

One area where these resourcing challenges have become apparent is in Defence Digital’s track record of delivering major digital programmes. These are the Department’s most complex and transformational programmes, many of which are needed to replace older legacy systems, and which it needs to get right if its strategy is to succeed.40 However, the Infrastructure and Project Authority’s (IPA’s) most recent reporting from March 2022 showed that, of the five programmes which report publicly, thr...

One area where these resourcing challenges have become apparent is in Defence Digital’s track record of delivering major digital programmes. These are the Department’s most complex and transformational programmes, many of which are needed to replace older legacy systems, and …

The NAO report identified that Defence Digital’s project delivery has suffered from a lack of skilled and experienced personnel, immature project controls, and a culture focused on the approvals process rather than outcomes.42 The Department accepted that its performance up to now is worrying and that it needs to up-skill staff and think differently about processes and risk.43 In particular, the Department said that it wants a more diverse mix of experience in its digital project delivery tea...

The NAO report identified that Defence Digital’s project delivery has suffered from a lack of skilled and experienced personnel, immature project controls, and a culture focused on the approvals process rather than outcomes.42 The Department accepted that its performance up …

Nonetheless, we challenged the Department on its need to get better at stopping and improving failing digital programmes.47 The Department stated it had recently paused its core networks programme to make changes to its design before going out to the market.48 They also paused specific software components of the Morpheus programme (itself a sub- component of the Land Environment Tactical Communications and Information Systems (LE TacCIS) programme) as they did not believe these were being del...

Nonetheless, we challenged the Department on its need to get better at stopping and improving failing digital programmes.47 The Department stated it had recently paused its core networks programme to make changes to its design before going out to the …

Similarly, the Department pointed out that where some programmes were rated red, there were elements of good progress on sub-programmes within them. While the IPA rated the Department’s MODNet Evolve programme red, the Department told us that 16 of its sub-programmes were either delivered or on track, with three remaining elements due to conclude over the next 18 months.51 It hopes to move the programme’s rating to amber in 2023.52 It also told us that the red-rated New Style of IT Base progr...

Similarly, the Department pointed out that where some programmes were rated red, there were elements of good progress on sub-programmes within them. While the IPA rated the Department’s MODNet Evolve programme red, the Department told us that 16 of its …

The NAO reported that the Department’s digital strategy was initially not fully funded, but the Department worked to identify ways to fund the strategy as well as reprioritise money to ensure that, as of its last budgeting cycle, it considered its strategy affordable.55 We put it to the Department that the impact of rising inflation means it can afford less with its existing budget. The Department explained that it was seeing cost pressures on pay settlements and raw materials both internally...

The NAO reported that the Department’s digital strategy was initially not fully funded, but the Department worked to identify ways to fund the strategy as well as reprioritise money to ensure that, as of its last budgeting cycle, it considered …

The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it runs itself and the Armed Forces, and has already assumed in its planning that it will achieve productivity improvements and cash savings.60 The NAO reported that the Department’s plans include a target to find £1.4 billion of cash from efficiency saving...

The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it …

The Department has a substantial legacy technology estate, in part because it has not prioritised the investment needed to keep it up to date.63 Defence Digital, the organisation responsible for leading on the digital strategy, estimates it will cost £11.7 billion over 10 years to remediate just its own legacy systems.64 We asked the Department whether it was more cost effective to fix its legacy systems gradually, or simply to start afresh with a different approach. The Department explained ...

The Department has a substantial legacy technology estate, in part because it has not prioritised the investment needed to keep it up to date.63 Defence Digital, the organisation responsible for leading on the digital strategy, estimates it will cost £11.7 …

The Department is working toward this by developing common standards, technology architecture and ways of working. The NAO reported that the Department has set up its governance and controls well, but ensuring compliance with these common standards and approaches across the Department is a substantial task and at an early stage.70 The Department told us it is pleased with the progress it is making and that a network of chief information officers, working to common standards, should have the e...

The Department is working toward this by developing common standards, technology architecture and ways of working. The NAO reported that the Department has set up its governance and controls well, but ensuring compliance with these common standards and approaches across …

The Cabinet Office’s efforts to update its property database have been subject to a series of unnecessary delays and setbacks. The Cabinet Office announced its new property database in 2018, with an anticipated launch date in 2021. The Cabinet Office determined that an off-the-shelf system would not be capable of receiving data from 160 different bodies across government. It therefore commissioned the development of a bespoke system called inSite. Citing staffing problems, the contractor, Lan...

The Cabinet Office’s efforts to update its property database have been subject to a series of unnecessary delays and setbacks. The Cabinet Office announced its new property database in 2018, with an anticipated launch date in 2021. The Cabinet Office …

We are sceptical that the Government Hubs programme still represents good value for money in the current climate. The Government Hubs programme relocates civil servants from small offices into large, modern government hubs located in cities across the United Kingdom. The government plans to deliver at least 31 government hubs and, potentially, up to 50. Demand for office space has decreased since the pandemic and it is unclear what long-term impact this will have on commercial rents. Governme...

We are sceptical that the Government Hubs programme still represents good value for money in the current climate. The Government Hubs programme relocates civil servants from small offices into large, modern government hubs located in cities across the United Kingdom. …

In addition to this, the Cabinet Office should update us yearly on the rollout of the hubs programme. Such updates should include the lease term and next available break point for each GPA hub, the extent to which offices are being sublet, the current levels of vacant space and what plans government has to sublet this space in the short to medium term.

In addition to this, the Cabinet Office should update us yearly on the rollout of the hubs programme. Such updates should include the lease term and next available break point for each GPA hub, the extent to which offices are …

It is unclear how the government will meet its target for property disposals, given the past struggles of such programmes and current market uncertainty. The new government property strategy has set a target for disposing of surplus property, to generate £1.5 billion by 2025 that can be reinvested into the estate. Detailed plans have not been published about how it will achieve this target. In our report on the last disposals programme, many departments were significantly behind their targets...

It is unclear how the government will meet its target for property disposals, given the past struggles of such programmes and current market uncertainty. The new government property strategy has set a target for disposing of surplus property, to generate …

Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. The Cabinet Office could not tell us if the government’s current operating cost to property value ratio is a good one. In 2020–2021, the operating cost for central government property was £22 billion which on a valuation of £158 billion is 13.92%, which is higher than we expect. This includes rent for leasehold property, as well as maintenance costs and other expenses. The new government pr...

Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. The Cabinet Office could not tell us if the government’s current operating cost to property value ratio is a good one. In 2020–2021, the operating …

Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when granted an extension. The Cabinet Office terminated its contract with Landmark solutions in July 2022, by which point it had paid out £880,000 of the £1.3 million contract. The Cabinet Office told us that it negotiated a termination agreement with Landmark. Landmark has subsequently repaid £300,000 and the Cabinet Office has 9 Qq 10, 40–41, 50, 52 10 C&AG’s Report, 2.13 11 Q 8; C&AG’s R...

Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when granted an extension. The Cabinet Office terminated its contract with Landmark solutions in July 2022, by which point it had paid out £880,000 of the …

The Cabinet Office was not able to tell us when the inSite system would be functional or how much it will cost. The Cabinet Office stated that such information could only be provided after it agreed a contract with a new supplier. The Cabinet Office said it will not “put prescriptive requirements on the timeline” for inSite.24 It does not anticipate difficulties finding a new contractor, or expect a new contractor to have the same resourcing problems as Landmark.25 However, when the Cabinet O...

The Cabinet Office was not able to tell us when the inSite system would be functional or how much it will cost. The Cabinet Office stated that such information could only be provided after it agreed a contract with a …

Another of the government’s major property initiatives is the Government Hubs programme. The government plans to relocate civil servants from hundreds of small offices into dozens of large, modern government hubs that are strategically located in cities across the United Kingdom. HM Revenue and Customs (HMRC) has already opened 12 government hubs. The GPA said that it has already completed four projects and has plans to deliver 17 hubs during this spending review period. It has since written ...

Another of the government’s major property initiatives is the Government Hubs programme. The government plans to relocate civil servants from hundreds of small offices into dozens of large, modern government hubs that are strategically located in cities across the United …

The government does not yet fully understand how offices are being used post- pandemic. From the data available, GPA has calculated the usage of offices is down at least 25%.41 It explained that it is rolling out new methods of measuring usage based on Wi-Fi and swipe card data, but it will take time to implement these methods across the whole estate.42 If hybrid-working continues as it has, it is possible that fewer hubs will be required. The GPA told us that it will ensure that existing spa...

The government does not yet fully understand how offices are being used post- pandemic. From the data available, GPA has calculated the usage of offices is down at least 25%.41 It explained that it is rolling out new methods of …

We questioned the Cabinet Office about how current turbulence in the property market may affect this target.46 The Cabinet Office acknowledged these risks, particularly surrounding valuation. It assured us it would seek appropriate professional advice and there would be no fire sale of assets.47 The Cabinet Office also explained its approach to disposals, asserting that it can protect itself from some market turbulence. It argued there was relative security in selling off lots of small parcel...

We questioned the Cabinet Office about how current turbulence in the property market may affect this target.46 The Cabinet Office acknowledged these risks, particularly surrounding valuation. It assured us it would seek appropriate professional advice and there would be no …

The new strategy’s emphasis on efficiency is also reflected in the plan to cut the estate’s annual running costs by £500 million.51 In 2020–2021, the operating cost for central government property was £22 billion.52 We asked the Cabinet Office if it considered government’s current operating cost to property value ratio was at the right level.53 The 44 Qq 98, 101; Government Property Function, Government Property Strategy: 2022–2030, 13. 45 Q 124 46 Q 122 47 Qq 71, 123 48 Q 98. 49 Committee of...

The new strategy’s emphasis on efficiency is also reflected in the plan to cut the estate’s annual running costs by £500 million.51 In 2020–2021, the operating cost for central government property was £22 billion.52 We asked the Cabinet Office if …

We questioned whether the government’s plan to save £500 million on operating costs by 2025 was ambitious enough, noting that it only represents approximately a 2% reduction.55 Cabinet Office officials told us the target was a cautious one and that it might be able to save more. It explained that department officials had spoken to government organisations and were confident that £500 million could be saved from specific initiatives, including efforts by the GPA and the Department for Work and...

We questioned whether the government’s plan to save £500 million on operating costs by 2025 was ambitious enough, noting that it only represents approximately a 2% reduction.55 Cabinet Office officials told us the target was a cautious one and that …

DfE has high expectations for its new Unit for Future Skills, but the Unit does not yet have all the skilled staff it needs to meet these expectations. In February 2022, DfE announced the creation of a Unit for Future Skills. This is a division within DfE but is intended to work across government, examining the interaction between the jobs and skills markets. DfE also plans that the Unit will engage with businesses and training providers to establish what additional analysis they would find h...

DfE has high expectations for its new Unit for Future Skills, but the Unit does not yet have all the skilled staff it needs to meet these expectations. In February 2022, DfE announced the creation of a Unit for Future …

To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion that a register of direct appointments be maintained and published as “an obvious thing to do”.167 We agree and recommend that departments begin to compile and publish such registers immediately and that they are kept updated contemporaneously.

To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion that a register of direct appointments be maintained and published as “an obvious thing to do”.167 We agree and recommend that departments begin to compile …

Government major programmes are experiencing significant challenges, such as skills gaps and inflation, which will impact on their feasibility and value for money. HM Treasury is clear that a new AO assessment should be completed where changing circumstances have led to a departure from the original plan. All our witnesses acknowledged that programmes faced some significant challenges in the future. For example, the IPA identified a skills gap of some 3,000 people across the programmes it mon...

Government major programmes are experiencing significant challenges, such as skills gaps and inflation, which will impact on their feasibility and value for money. HM Treasury is clear that a new AO assessment should be completed where changing circumstances have led …

Looking to the future, departments face several challenges which may lead to significant changes to their programmes.54 We have seen estimates of a reduction in the size of the civil service of between 5% and 25%.55 The IPA told us that it estimates a skills gap on programmes of around 3,000 across all departments, of which fewer than half may 44 Q 42 45 Q 64 46 Q 67 47 Qq 69, 70 48 Qq 67, 79 49 Q 19 50 C&AG’s report, para 1.13 51 C&AG’s report, para 1.13 52 Qq 10, 13; C&AG’s report, para 1.1...

Looking to the future, departments face several challenges which may lead to significant changes to their programmes.54 We have seen estimates of a reduction in the size of the civil service of between 5% and 25%.55 The IPA told us …

There is a risk that the Weybridge redevelopment programme will not have sufficient staff capability and capacity to manage the Programme effectively. The Weybridge site is nationally important in the UK’s defence against animal diseases. The Department confirmed that the Weybridge redevelopment programme is a high priority for staffing. However, the National Audit Office highlighted the challenges the Department is having recruiting staff to some of the more specialist technical, engineering...

There is a risk that the Weybridge redevelopment programme will not have sufficient staff capability and capacity to manage the Programme effectively. The Weybridge site is nationally important in the UK’s defence against animal diseases. The Department confirmed that the …

The Department stated that the Weybridge redevelopment programme is very high on its risk register and is part of its major programmes portfolio. As a result, it sees the programme as a priority area for staffing.59 The National Audit Office highlighted the challenges the Department is having recruiting staff to some of the more specialist technical, engineering and programme delivery roles. The programme risk register rates the risk of not being able to recruit skilled and experienced staff ...

The Department stated that the Weybridge redevelopment programme is very high on its risk register and is part of its major programmes portfolio. As a result, it sees the programme as a priority area for staffing.59 The National Audit Office …

We asked the Department about progress it has made on the Government’s request to draw up plans to reduce staff numbers and how the Weybridge redevelopment programme would be accommodated within these plans. The Department stated that it is in the early stages of its planning and is modelling some of these reductions. It told us that it is already limiting its recruitment and is looking to identify areas where critical posts are still required. The Department confirmed that it sees the Weybri...

We asked the Department about progress it has made on the Government’s request to draw up plans to reduce staff numbers and how the Weybridge redevelopment programme would be accommodated within these plans. The Department stated that it is in …

The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of contracts covering professional services and construction.62 The Department recognised the challenges of integrating a large number of suppliers and it told us that it has looked to learn lessons from the commercial aspects of other programmes we have reported on such as Crossrail. The Department said that there is a balance between getting the best-in-class suppliers whilst ensuring it does ...

The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of contracts covering professional services and construction.62 The Department recognised the challenges of integrating a large number of suppliers and it told us that it has …

The Department also recognised that it needs to build up its commercial capability to enable it to act as an intelligent client and to manage the range of suppliers effectively. It stated that it had been too optimistic in its assumptions about the work required to integrate suppliers and is looking to increase its commercial capability. The Department stated that ultimately it bears the risk of managing these commercial arrangements effectively and cannot transfer this to its suppliers.64

The Department also recognised that it needs to build up its commercial capability to enable it to act as an intelligent client and to manage the range of suppliers effectively. It stated that it had been too optimistic in its …

The Department told us that it is concerned about the health and capacity of the market and sees a lack of supplier appetite to bid for the main construction contracts as a significant risk.65 It said that it has done some market engagement work including issuing an information notice to the market and had undertaken a survey of suppliers resulting in a database of potentially interested suppliers. It has also had consultancy support to understand the capacity of the market and the pipeline f...

The Department told us that it is concerned about the health and capacity of the market and sees a lack of supplier appetite to bid for the main construction contracts as a significant risk.65 It said that it has done …

The Ministry admitted that its evaluation in the transformation programme was not as strong as it should have been and recognised that it needed to put more effort into evaluation going forward. It told us that it was extending its team of analysts in its expansion programme, from three to 17.26 The Ministry told us that while there was evidence which suggested that tagging changes offenders’ behaviour while offenders were wearing tags, insights into longer-term impacts after tags are removed...

The Ministry admitted that its evaluation in the transformation programme was not as strong as it should have been and recognised that it needed to put more effort into evaluation going forward. It told us that it was extending its …

HMPPS told us it had learnt lessons from its transformation programme and was applying these to its re-procurement of its contracts to deliver tagging services. In addition to pursuing off-the-shelf systems, it told us that it had decided to limit the number of suppliers in its new model to two. As part of the new model, one supplier will provide field and monitoring services while the other will provide tags and other hardware.44 The Ministry told us that it considered whether it should cont...

HMPPS told us it had learnt lessons from its transformation programme and was applying these to its re-procurement of its contracts to deliver tagging services. In addition to pursuing off-the-shelf systems, it told us that it had decided to limit …

Government has not yet set out the consequences of announced Civil Service staffing reductions. In May 2022, the government announced that it intends to cut 91,000 jobs from the civil service over the next three years. The 2021 Spending Review had already confirmed the need for savings of 5% against day-to-day central departmental budgets in 2024–25, however, these new cuts, which represent a 20% reduction in headcount, are far more significant. The Treasury acknowledges that it does not yet ...

Government has not yet set out the consequences of announced Civil Service staffing reductions. In May 2022, the government announced that it intends to cut 91,000 jobs from the civil service over the next three years. The 2021 Spending Review …

In May 2022, the government announced its intention to cut 91,000 jobs from the civil service over the next three years, with the aim of returning to 2016 staffing levels.70 The 2021 Spending Review had already confirmed the need for savings of 5% against day- to-day central departmental budgets in 2024–25, however, these new cuts, which represent a 20% reduction in headcount, are far more significant.71 72

In May 2022, the government announced its intention to cut 91,000 jobs from the civil service over the next three years, with the aim of returning to 2016 staffing levels.70 The 2021 Spending Review had already confirmed the need for …

Staff cuts will inevitably involve a quantity of associated costs, including redundancy costs, that the government will have to pay out. We questioned the Treasury as to what the total cost of these payments was likely to be, and although it explained that the number of required redundancies could be minimised by the large number of people who leave the civil service or retire each year, it told us that it did not know what the expected level of exit costs was likely to be at this stage.73 Th...

Staff cuts will inevitably involve a quantity of associated costs, including redundancy costs, that the government will have to pay out. We questioned the Treasury as to what the total cost of these payments was likely to be, and although …

The Treasury told us that at this stage the challenge of how best to achieve these reductions is in the hands of individual departments. It explained that each department is itself best placed to understand the resourcing requirements needed to deliver its service programmes and objectives. It told us that the decision around how these headcount reductions will be achieved whilst continuing to deliver vital public services and maintaining an appropriate skill base is, therefore, up to each de...

The Treasury told us that at this stage the challenge of how best to achieve these reductions is in the hands of individual departments. It explained that each department is itself best placed to understand the resourcing requirements needed to …

We discussed with the Treasury that one way in which headcount reductions might be accomplished whilst at the same time maintaining the scope and standard of service delivery, is by way of increased digitisation. By digitalising services, the required level of staffing is reduced, and cuts can be made in areas where resources are no longer needed. The Treasury acknowledged the risk that if a rapid reduction in headcount resulted in the loss of the skills and capacity needed to achieve transfo...

We discussed with the Treasury that one way in which headcount reductions might be accomplished whilst at the same time maintaining the scope and standard of service delivery, is by way of increased digitisation. By digitalising services, the required level …

Alongside the Permanent Secretary’s acknowledgement that some of the risk judgements made within the Integrated Review process might need to be revisited in light of events in Ukraine, it is clear that the capability gaps which the Defence Command Paper saw as acceptable are now no longer palatable. Furthermore, the move to such a position relies on technological innovation and the adoption of digital capabilities (such as Ajax and the Digital Backbone, as noted above).

Alongside the Permanent Secretary’s acknowledgement that some of the risk judgements made within the Integrated Review process might need to be revisited in light of events in Ukraine, it is clear that the capability gaps which the Defence Command Paper …

There are significant challenges to integration but none that concerns us as much as the MOD’s procurement difficulties. For instance, the MOD has made it clear that in order to achieve integration and utilise new technologies, it needs an effective digital network. Without that network, few of the suggested benefits are accrued. Yet its track record in large and complex programmes is abysmal. We recommend that the Government identify those programmes which are critical enablers and ensure th...

There are significant challenges to integration but none that concerns us as much as the MOD’s procurement difficulties. For instance, the MOD has made it clear that in order to achieve integration and utilise new technologies, it needs an effective …

We recommend that the FCDO prioritises engaging with product teams and technologists, rather than only policy teams, to gain a clearer understanding of the activities of companies that are developing and implementing new technologies, as well as helping to influence the activities of these companies. The Department will need to bring in and develop the internal skills and expertise it needs to effectively engage at this level (Paragraph 16) The UK’s place in shaping the international order

We recommend that the FCDO prioritises engaging with product teams and technologists, rather than only policy teams, to gain a clearer understanding of the activities of companies that are developing and implementing new technologies, as well as helping to influence …

The Clerk of the House of Commons explained that the technical capacity needed to take on the Sponsor Body’s role was well beyond anything within the House administrations’ in-house resource. He suggested there will need to be a professional client function with the same mix of professional skills as the Sponsor Body’s current team.40 We heard that the House administrations were not resourced to take on the Sponsor Body’s role, which included overseeing the Delivery Authority’s performance an...

The Clerk of the House of Commons explained that the technical capacity needed to take on the Sponsor Body’s role was well beyond anything within the House administrations’ in-house resource. He suggested there will need to be a professional client …

The Clerk of the House of Commons recognised the challenge of the Programme’s clients—including Members and the Commissions—not having a single voice.66 In our view, until Parliament can provide a clear steer on what it wants, it is almost impossible for anything to be delivered.67 We are concerned that the House authorities currently have no answer to the “multibillion-dollar” question of how to identify and future-proof a shared understanding across multiple clients with multiple views of w...

The Clerk of the House of Commons recognised the challenge of the Programme’s clients—including Members and the Commissions—not having a single voice.66 In our view, until Parliament can provide a clear steer on what it wants, it is almost impossible …

The Department’s Customer Charter (the Charter) covers four customer service areas: ‘ease of access’; ‘getting it right’; ‘keeping you informed’; and ‘right treatment’. The NAO found that it is difficult to assess the Department objectively against these areas because the Department has not identified a suite of performance measures, management information and benchmarks that it needs to assess whether it is providing a reasonable level of service.22 The Department told us that in its view, “...

The Department’s Customer Charter (the Charter) covers four customer service areas: ‘ease of access’; ‘getting it right’; ‘keeping you informed’; and ‘right treatment’. The NAO found that it is difficult to assess the Department objectively against these areas because the …

We asked the Department about its commercial capability. It confirmed that this was on its “worry list” prior to the arrival of the COVID-19 pandemic and continues to be a challenge.24 The Department stated that it has an ongoing programme of contract training with some 972 learners across health (DHSC, ALBs and NHS) registered for the Foundation Training, of which 450 achieved accreditation. At 31 March 2021, the Department had over 700 new contracts with a value of over £12 billion still ac...

We asked the Department about its commercial capability. It confirmed that this was on its “worry list” prior to the arrival of the COVID-19 pandemic and continues to be a challenge.24 The Department stated that it has an ongoing programme …

Good quality modelling and evaluation is hampered by challenges in sharing data and a lack of common data standards. Government does not always see data as a priority and data quality is often inadequate. We have drawn attention to poor data and a lack of joined up systems in numerous reports over the years, such as on supporting the vulnerable during lockdown, on tackling the tax gap, on effective regulation of gambling, on dealing with rough sleepers, and on identifying and tackling fraud a...

Good quality modelling and evaluation is hampered by challenges in sharing data and a lack of common data standards. Government does not always see data as a priority and data quality is often inadequate. We have drawn attention to poor …

To address the lack of overall oversight for both evaluation and modelling standards, the Analysis Function intends to strengthen the governance framework for the Analysis Functional Standard, including introducing a self-assessment framework to assess performance against the standard.31 The Analysis Function told us there will be an expectation in the future that departmental directors of analysis use the self-assessment framework to report back to the Function annually on how well the depar...

To address the lack of overall oversight for both evaluation and modelling standards, the Analysis Function intends to strengthen the governance framework for the Analysis Functional Standard, including introducing a self-assessment framework to assess performance against the standard.31 The Analysi

Government does not always see data as a priority and data quality is often inadequate.36 The NAO reported in 2019 that the quality and sharing of data is a clear example of a neglected and poorly planned activity, and there is a culture of tolerating and working around poor-quality data.37 We have drawn attention to poor data and a lack of joined up systems in numerous reports over the years, recently including for example, on supporting the vulnerable during lockdown, on tackling the tax ga...

Government does not always see data as a priority and data quality is often inadequate.36 The NAO reported in 2019 that the quality and sharing of data is a clear example of a neglected and poorly planned activity, and there …

Transparency of the models that departments use is poor: only 9 out of 17 departments have published their list of business-critical models since 2013, and only four of those have updated this since 2017.54 HM Treasury has not published its own list of business-critical 44 Qq 43,55 45 Q 43 46 Q 49 47 C&AG’s Report, Evaluating government spending, para 20 48 Q 43 49 Q 44 50 C&AG’s Report, Evaluating government spending, para 3.14 51 Qq 33, 44 52 Q 33 53 Q 7 54 C&AG’s Report, Financial modellin...

Transparency of the models that departments use is poor: only 9 out of 17 departments have published their list of business-critical models since 2013, and only four of those have updated this since 2017.54 HM Treasury has not published its …

The Department remains a long way short of having the finance skills it needs to manage the Plan effectively. Strong financial skills are needed to manage the large and complex set of programmes, crucial to a well managed and affordable Plan. But according to HM Treasury, the Department is in the third quartile of government departments in terms of financial capability. The proportion of Finance staff with professional qualifications has only increased from 41% to 43% in two years, against a ...

The Department remains a long way short of having the finance skills it needs to manage the Plan effectively. Strong financial skills are needed to manage the large and complex set of programmes, crucial to a well managed and affordable …

We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to be achieved by March 2025. This is despite the fact that contractual commitments limit TLBs’ flexibility to make savings, for example 62% of Air Command’s spend is already committed over the next ten years. Air Command believes that, as a result, it will need to reduce flying activity considerably, which will have consequences for aviators’ skills.45 The Department said in response it still believes the savi...

We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to be achieved by March 2025. This is despite the fact that contractual commitments limit TLBs’ flexibility to make savings, for example 62% of Air Command’s …

In order to produce a Plan which is effective, realistic and affordable, the Department needs to have in place the right arrangements and capabilities, many of which have previously been absent or incomplete. With such a financially complex Plan, it is vital for the Department’s people to have strong financial skills. And necessary to underpin success is the need for a culture in the Department which is open, collaborative and innovative so that complex problems can be solved imaginatively an...

In order to produce a Plan which is effective, realistic and affordable, the Department needs to have in place the right arrangements and capabilities, many of which have previously been absent or incomplete. With such a financially complex Plan, it …

Strong financial skills are necessary at all levels for good management of the many hundreds of complex projects which make up the Plan. Yet, according to HM Treasury, the Department languishes in the third quartile of government departments in terms of financial capability. And the proportion of professionally trained financial staff in the Department has only increased from 41% to 43% since 2019, against a target of 60%. In July 2021 the Department had 350 vacancies in jobs in finance acros...

Strong financial skills are necessary at all levels for good management of the many hundreds of complex projects which make up the Plan. Yet, according to HM Treasury, the Department languishes in the third quartile of government departments in terms …

We were interested as to why there had been so little progress since last year. The Department acknowledged “we are not where we want to be”, but told us that things were going in the right direction, and that there was a ‘sea change’ in the Department’s sense of cost control this year. The Department said that many staff were currently undertaking qualifications and that 54% of finance staff were either qualified or studying for qualifications. At senior levels the proportions of qualified s...

We were interested as to why there had been so little progress since last year. The Department acknowledged “we are not where we want to be”, but told us that things were going in the right direction, and that there …

Departmental reform efforts have made limited progress. We note the NAO’s finding that the current Defence Transformation Programme, of which a key element is to change both processes and culture within the Department, is already behind schedule. A July 2021 internal review of the programme found that improvements were needed on nine of its 12 projects, as well as its overall governance and coherence.66 The resistance to change can be seen directly in the way the Plan is managed, where only a...

Departmental reform efforts have made limited progress. We note the NAO’s finding that the current Defence Transformation Programme, of which a key element is to change both processes and culture within the Department, is already behind schedule. A July 2021 …

The Permanent Secretary insisted that progress is being made on changing behaviour and culture, but admitted that such changes “are not quick”. He also said that reducing the level of bullying, harassment and discrimination within the Department is a matter of personal priority for him. This is encouraging but he undoubtedly faces an uphill task.68 62 Q136 63 Q140 64 Q143 65 Q152 66 NAO report, paragraph 3.22 67 NAO report, paragraph 3.21 68 Q152 Ministry of Defence Equipment Plan 2021–31 17

The Permanent Secretary insisted that progress is being made on changing behaviour and culture, but admitted that such changes “are not quick”. He also said that reducing the level of bullying, harassment and discrimination within the Department is a matter …

The Ministry decided not to set targets because achieving them would be reliant on bodies independent of the Ministry, including other government departments and the judiciary.47 We asked the Ministry about the impact of this decision on cross-government working.48 It told us that Ministers across government are reviewing what outcomes they want to see and how best to measure progress towards them and that the new cross- departmental Women in the CJS and at risk of entering the CJS board (cha...

The Ministry decided not to set targets because achieving them would be reliant on bodies independent of the Ministry, including other government departments and the judiciary.47 We asked the Ministry about the impact of this decision on cross-government working.48 It …

In our report of 8 January 2021, we recommended that the Department should clearly set out what activities it intended to complete and by when to achieve its revised targets. As part of this, we recommended that it set out the final dates by which key milestones must be reached in order to meet those targets and publish yearly updates on progress thereafter.16 In response, the Department told us that the overall programme delivery profile will be incorporated into the Programme Business Case ...

In our report of 8 January 2021, we recommended that the Department should clearly set out what activities it intended to complete and by when to achieve its revised targets. As part of this, we recommended that it set out …

NHS England must produce its roadmap in response to the Wade-Gery report on Putting data, digital and tech at the heart of transforming the NHS at the earliest opportunity so that we and others are able to scrutinise it ahead of implementation.

NHS England must produce its roadmap in response to the Wade-Gery report on Putting data, digital and tech at the heart of transforming the NHS at the earliest opportunity so that we and others are able to scrutinise it ahead …

We welcome the Department’s ambition to bring new technology into the fleet and the opportunities that the large number of planned vessels offer. It provides an early test of the new Integrated Operating Concept. It is essential that NavyX and Defence Equipment & Support (DE&S) improve their ability to take emerging technology beyond the demonstrator phase and deliver it to the field. Digital systems should be prioritised more highly in procurement, with consideration given to them early in t...

We welcome the Department’s ambition to bring new technology into the fleet and the opportunities that the large number of planned vessels offer. It provides an early test of the new Integrated Operating Concept. It is essential that NavyX and …

Acknowledging the need for legislation to keep pace with rapid technological changes, the Government should commit to monitoring and conducting regular reviews of the digital imprints scheme, to ensure effectiveness in the monitoring and enforcement of the legislation and to prevent any unintended consequences or loopholes. (Paragraph 224) Simple majority system to be used in elections for certain offices

Acknowledging the need for legislation to keep pace with rapid technological changes, the Government should commit to monitoring and conducting regular reviews of the digital imprints scheme, to ensure effectiveness in the monitoring and enforcement of the legislation and to …

Departments have failed to understand the difference between improving what currently exists and real digital transformation, meaning that they have missed opportunities to move to modern, efficient ways of working. The Cabinet Office concedes that too often operations and services fail to recognise the fundamental 6 Challenges in implementing digital change inefficiencies of legacy systems and their data; and instead build new systems on top of these using the old data. Programmes have not s...

Departments have failed to understand the difference between improving what currently exists and real digital transformation, meaning that they have missed opportunities to move to modern, efficient ways of working. The Cabinet Office concedes that too often operations and services …

Digital programmes often fail to have their own single programme office to support the programme director to align all aspects throughout the lifetime of the programme, including integration of legacy and future systems. Although the Cabinet Office has started to try to strengthen central oversight of digital programmes, government’s digital functions are relatively immature when compared with the long-standing control exercised by HM Treasury over financial management. The breadth and comple...

Digital programmes often fail to have their own single programme office to support the programme director to align all aspects throughout the lifetime of the programme, including integration of legacy and future systems. Although the Cabinet Office has started to …

Departments have failed to develop a modern professional approach to IT operations needed to support business change and transformation and have created an over-reliance on outsourcing. Departmental IT functions are often not structured or funded in a way that allows them to run and update their core systems Challenges in implementing digital change 7 and support business transformation. This is not helped by the current problem of alignment between Spending Review allocations and annual fund...

Departments have failed to develop a modern professional approach to IT operations needed to support business change and transformation and have created an over-reliance on outsourcing. Departmental IT functions are often not structured or funded in a way that allows …

There is a large gap between the demand for and supply of the digital specialists that government needs, and it is hard to get the right balance of in-house and outsourced skills. Government has been excessively reliant on outsourcing and has failed to retain sufficient in-house capability. The Central Digital and Data Office now has responsibility for government’s capability building strategy, but recognises government does not yet have the depth of experience needed to deliver across the fu...

There is a large gap between the demand for and supply of the digital specialists that government needs, and it is hard to get the right balance of in-house and outsourced skills. Government has been excessively reliant on outsourcing and …

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and HM Revenue & Customs (HMRC) on the challenges in implementing digital change in government.1

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and HM Revenue & Customs (HMRC) on the challenges in implementing digital change in government.1 Type: conclusion | Number: 1 | …

Many of the systems government use are not really geared up to modern technology and some date back to the 1970s.14 The Cabinet Office told us that government is a difficult environment for digital projects, partly because these previous systems and old data, known as ‘legacy’, can stand in the way of progress.15 Government relies on legacy systems for many important services.16 For example legacy systems are used by the Home Office to manage the UK border and by police forces to access crimi...

Many of the systems government use are not really geared up to modern technology and some date back to the 1970s.14 The Cabinet Office told us that government is a difficult environment for digital projects, partly because these previous systems …

The risks associated with legacy systems include that they can be difficult and expensive to support, lack operational resilience for key government services, and be vulnerable to cyber-attack. This exposes government to what is likely to be an uncertain but high level of financial risk from potential operational and cyber-related incidents. Legacy systems need a significant level of resource to make more regular, incremental updates over time.20 Given there are so many legacy systems in gove...

The risks associated with legacy systems include that they can be difficult and expensive to support, lack operational resilience for key government services, and be vulnerable to cyber-attack. This exposes government to what is likely to be an uncertain but …

Departments typically do not have a good understanding of their IT estate, legacy systems are often poorly understood because of their age, and replacing these systems 10 Q 7 11 Dr Jerry Fishenden, Professor Mark Thompson and Assistant Professor Will Venters submission page 2 12 Qq 13–14 13 Qq 27, 7 14 Chair opening statement 15 Q 1 16 C&AG’s Report, para 2.15 17 Committee of Public Accounts, Digital Services at the Border, Forty-Eighth Report of Session 2019–21, HC 936, 12 March 2021; Commit...

Departments typically do not have a good understanding of their IT estate, legacy systems are often poorly understood because of their age, and replacing these systems 10 Q 7 11 Dr Jerry Fishenden, Professor Mark Thompson and Assistant Professor Will …

The Cabinet Office concedes that too often operations and services fail to recognise the fundamental inefficiencies of legacy systems and the data they contain.26 The National Audit Office reported that government has been trying to improve its digital performance for the past 25 years27 but has not been successful in achieving the intended results and departments have continued to build on top of legacy systems and data.28 Programmes have concentrated on automating existing way of working wi...

The Cabinet Office concedes that too often operations and services fail to recognise the fundamental inefficiencies of legacy systems and the data they contain.26 The National Audit Office reported that government has been trying to improve its digital performance for …

Government has developed several systems to meet new requirements, such as for checking and processing applications under the EU Settlement Scheme. However, the deadline for EU Exit and Government decisions on the timetable for withdrawing the rights previously exercised by EU nationals meant that these systems all had to be in place by a fixed deadline. Government designed and built these systems to meet own their specific, narrow purposes so they could deliver them on time.30 This represent...

Government has developed several systems to meet new requirements, such as for checking and processing applications under the EU Settlement Scheme. However, the deadline for EU Exit and Government decisions on the timetable for withdrawing the rights previously exercised by …

The Cabinet Office pointed to the role that central platforms such as GOV.UK Pay and Notify have played, for example sending alerts and test results to citizens during the COVID-19 pandemic.31 But the functions they perform are relatively straightforward commodity services that are already easily available and used extensively in the private sector. We are not convinced these examples demonstrate government’s ability to secure the deeper levels of transformation and business change needed to ...

The Cabinet Office pointed to the role that central platforms such as GOV.UK Pay and Notify have played, for example sending alerts and test results to citizens during the COVID-19 pandemic.31 But the functions they perform are relatively straightforward commodity …

Government has not properly structured and resourced technology departments against good standards. This makes it difficult to manage the integration and connections between different systems, especially legacy systems, both within and outside programmes.34 This lack of resource and structure means that digital programmes do not have a strong technical design function and programme office for each major programme. Departments need to staff these programme offices with people who have sufficie...

Government has not properly structured and resourced technology departments against good standards. This makes it difficult to manage the integration and connections between different systems, especially legacy systems, both within and outside programmes.34 This lack of resource and structure means

Government’s central digital functions are relatively immature. Government only created the Central Digital and Data Office this year and set up the other central functions within the last decade. The Cabinet Office told us that they have started to strengthen central oversight of digital programmes, but we do not yet see a similar degree of oversight and control as established institutions such as HM Treasury exercise over the way departments manage their finances.36 Government operations ar...

Government’s central digital functions are relatively immature. Government only created the Central Digital and Data Office this year and set up the other central functions within the last decade. The Cabinet Office told us that they have started to strengthen …

According to a recent report, government has had to rely on external contractors and consultants to make critical decisions on core design and architecture choices, which need a long-term and holistic view across government.38 The report recommends government creates a strong, expert central team with real ‘teeth’ to take ownership of digital, data and technology standards including technology choices, privacy, security, and interoperability. The Cabinet Office told us that it accepts the rec...

According to a recent report, government has had to rely on external contractors and consultants to make critical decisions on core design and architecture choices, which need a long-term and holistic view across government.38 The report recommends government creates a …

Funding for departmental technology functions is often not allocated in a way that enables them to both run and update their core systems and support business transformation. This Committee has seen in other digital programmes that the current spending review processes, which set separate capital and revenue allocations in short, fixed cycles, have contributed to an under-investment in resolving legacy system issues and ensuring systems remain fit for purpose.40 34 Qq 52–53 35 Qq 2, 70–71 36 ...

Funding for departmental technology functions is often not allocated in a way that enables them to both run and update their core systems and support business transformation. This Committee has seen in other digital programmes that the current spending review …

Government accepts that it is important to have deep digital, data and technology expertise preserved within departments. Government has excessively outsourced programmes and has very thinly resourced the internal client function capability within departments. That has been a problem and has led to a dependence on external experts, without sufficient internal expertise.41

Government accepts that it is important to have deep digital, data and technology expertise preserved within departments. Government has excessively outsourced programmes and has very thinly resourced the internal client function capability within departments. That has been a problem and …

Departments have made technology choices too early in the life of digital programmes before they have fully understood the business problem the programme is seeking to address.42 Departments have then over specified supplier contracts to a degree of detail which does not match the department’s knowledge and this has resulted in a loss of flexibility.43 Consequently, departments have struggled to change the direction of programmes in response to later events.44 Departments have also been slow ...

Departments have made technology choices too early in the life of digital programmes before they have fully understood the business problem the programme is seeking to address.42 Departments have then over specified supplier contracts to a degree of detail which …

Ten years ago, government had little in-house digital capability and outsourced most technology programmes.47 The Cabinet Office blamed the failure of many programmes in the past on too much outsourcing of poorly understood services, and insufficient resourcing of the intelligent client function within departments.48 For example, NHS England did not believe it had the skills in-house to transform primary care services, but also did not know enough about those services to be able to set the su...

Ten years ago, government had little in-house digital capability and outsourced most technology programmes.47 The Cabinet Office blamed the failure of many programmes in the past on too much outsourcing of poorly understood services, and insufficient resourcing of the intelligent …

The Cabinet Office accepted that government still has a capability problem and is not as sophisticated as it needs to be.52 There are not yet enough people with the depth 41 Qq 12, 73 42 Q 4, 73 43 Qq 4, 46, 63 44 Q 4 45 Q 48 46 Qq 43–44, 62, 65–66, 73 47 Q 7 48 Q 12 49 Committee of Public Accounts, Supporting Primary Care Services: NHS England’s contract with Capita, Fifty- Seventh Report of Session 2017–19, HC 698, 25 July 2018; C&AG’s Report, figure 8 50 C&AG’s Report, The National Law Enf...

The Cabinet Office accepted that government still has a capability problem and is not as sophisticated as it needs to be.52 There are not yet enough people with the depth 41 Qq 12, 73 42 Q 4, 73 43 Qq …

The Department does not yet have a plan for maintaining the PND and combining its data with NLEDS in future. The Department has changed its plans for integrating the PND with the NLEDS programme several times, and it has now been excluded. The PND, introduced in 2011, is nearing the end of its original lifespan and will need a technology update. The Department intends to establish a separate five-year programme to update the PND, but this will not begin until

The Department does not yet have a plan for maintaining the PND and combining its data with NLEDS in future. The Department has changed its plans for integrating the PND with the NLEDS programme several times, and it has now …

There is a risk that the Department still lacks the capacity to prioritise and deliver major digital programmes on time. In common with many other government departments and agencies, the Department is reliant on a range of legacy technology systems that need updating or replacing. We have seen several major programmes to deliver such replacements encounter major problems and require resetting, for example the Emergency Services Network and Digital Services at the Border programmes. The Depar...

There is a risk that the Department still lacks the capacity to prioritise and deliver major digital programmes on time. In common with many other government departments and agencies, the Department is reliant on a range of legacy technology systems …

One of the critical success factors for the programme is having the right people in place to deliver it. The programme depends on access to the PNC team but that team lacks capacity to support other programmes as well as manage the PNC, and this issue has caused delays.17 Key staff on the PNC team are approaching retirement, while the specialist skills and knowledge required to maintain the PNC make it difficult for the Department to recruit and train replacements.18 The Department emphasised...

One of the critical success factors for the programme is having the right people in place to deliver it. The programme depends on access to the PNC team but that team lacks capacity to support other programmes as well as …

The NLEDS programme team is also changing the way it delivers technology to be more iterative. The November 2020 external programme review recommended an ‘agile’ approach in which technology is released gradually and changed in response to feedback. The Department’s view is that such an approach should help the programme develop technology to meet the needs of police forces.58 The Department stressed to us how much it wanted to be attuned to the police’s needs so that forces can do the best p...

The NLEDS programme team is also changing the way it delivers technology to be more iterative. The November 2020 external programme review recommended an ‘agile’ approach in which technology is released gradually and changed in response to feedback. The Department’s …

The Department also said it was now trying to really think about its portfolio of programmes as a whole and that a lot of the issues concerning NLEDS are relevant elsewhere; not just the way of working with the police, but also issues to do with capability, governance, leadership and skills.64 It said that, with the benefit of hindsight, it was aware that it needs to constantly consider its total level of ambition – that sometimes it would have to descope or in fact say “No, we are not able t...

The Department also said it was now trying to really think about its portfolio of programmes as a whole and that a lot of the issues concerning NLEDS are relevant elsewhere; not just the way of working with the police, …

Previous efficiency programmes have over-promised and under-delivered. ‘Optimism bias’ is a long-standing problem within government where project plans are impractical and unrealistic, and do not always achieve the expected objectives. We have seen this across a range of programmes, such as Shared Service Centres and, more recently, the Defence Equipment Plan 2020–2030. These problems occur due to poor data on costs and performance, but also because departments and central government do not c...

Previous efficiency programmes have over-promised and under-delivered. ‘Optimism bias’ is a long-standing problem within government where project plans are impractical and unrealistic, and do not always achieve the expected objectives. We have seen this across a range of programmes, such …

Skills shortages in the civil service could compromise departments’ ability to achieve efficiency savings. A lack of skills and leadership capability has caused delays, inefficiencies, and increased costs in several previous government projects. For example, the InterCity West Coast franchise competition saw a lack of leadership and expertise contribute to its collapse, and the Common Agricultural Policy Delivery Programme suffered from a high turnover of senior leaders. Increasing the capabi...

Skills shortages in the civil service could compromise departments’ ability to achieve efficiency savings. A lack of skills and leadership capability has caused delays, inefficiencies, and increased costs in several previous government projects. For example, the InterCity West Coast franchise …

Government efficiency drives tend to be one-off events rather than being embedded as a continuous priority. The Treasury believes that well-defined, tight budgets provide departments with enough of a financial incentive to strive for efficiency continuously. But its emphasis on driving efficiency from departments primarily in the run up to Spending Reviews risks departments losing focus in between fiscal events and there is little evidence of a continuous improvement culture in government. Le...

Government efficiency drives tend to be one-off events rather than being embedded as a continuous priority. The Treasury believes that well-defined, tight budgets provide departments with enough of a financial incentive to strive for efficiency continuously. But its emphasis on …

‘Optimism bias’ refers to the tendency for project appraisers to be impractical and unrealistic, which can lead to a failure to deliver, delays, poor service quality or a need for later funding injections.24 The prevalence of optimism bias in government has been highlighted before. For example, the Shared Service centres initiative fell far short of the planned savings and failed to achieve value for money and, more recently, we reported on the Ministry of Defence’s Equipment Plan for 2019–20...

‘Optimism bias’ refers to the tendency for project appraisers to be impractical and unrealistic, which can lead to a failure to deliver, delays, poor service quality or a need for later funding injections.24 The prevalence of optimism bias in government …

The Treasury told us that it is trying to prevent poor data leading to optimism bias by improving the raw financial data that government captures. It gave the new Online System for Central Reporting and Accounting (OSCAR 2) as an example of how government is capturing new and important datasets. The Treasury described how it is working with the government functions to collect benchmarking data, which can be used to sense check information. The Treasury noted how it would like to see more impr...

The Treasury told us that it is trying to prevent poor data leading to optimism bias by improving the raw financial data that government captures. It gave the new Online System for Central Reporting and Accounting (OSCAR 2) as an …

We asked the Cabinet Office whether it had pushed back on any plans for reducing the size of government estates because they were over-optimistic. The Cabinet Office explained that the government’s plan to shrink the London property estate has not been progressing as quickly as it had wished due to expansion of departments in response to Brexit and COVID-19.31 The Cabinet Office said there are big opportunities for savings in London real estate but could not say to what extent these would be ...

We asked the Cabinet Office whether it had pushed back on any plans for reducing the size of government estates because they were over-optimistic. The Cabinet Office explained that the government’s plan to shrink the London property estate has not …

The Cabinet Office has overall responsibility for capability within the civil service and should ensure departments have the capability required to achieve planned efficiency programmes.33 Capability shortfalls have led to problems on numerous occasions, such as in the InterCity West Coast franchise competition in 2012, where a lack of expertise contributed to its collapse, and the Common Agricultural Policy delivery programme, which suffered from a high turnover of senior leaders.34

The Cabinet Office has overall responsibility for capability within the civil service and should ensure departments have the capability required to achieve planned efficiency programmes.33 Capability shortfalls have led to problems on numerous occasions, such as in the InterCity West …

We questioned the Cabinet Office on how it can ensure capability is in place across government to deliver departments’ efficiency programmes. The Cabinet Office told us that processes such as the Outcome Delivery Plans, where outcomes are matched against resources, helps them identify where skill shortages are present.35 The Cabinet Office explained how its Declaration on Government Reform shows its commitment to build the capabilities within government; how it is particularly keen to increas...

We questioned the Cabinet Office on how it can ensure capability is in place across government to deliver departments’ efficiency programmes. The Cabinet Office told us that processes such as the Outcome Delivery Plans, where outcomes are matched against resources, …

We asked the Cabinet Office how it can ensure that skills are situated in the right places across government. The Cabinet Office explained how the growth in cross-government functions has helped achieve this, as has the internal government job market, since it matches people with the right skills to the right jobs.37 The Cabinet Office also explained how the Infrastructure and Projects Authority is beginning to use specialists who can find the right people for the job on behalf of departments...

We asked the Cabinet Office how it can ensure that skills are situated in the right places across government. The Cabinet Office explained how the growth in cross-government functions has helped achieve this, as has the internal government job market, …

We asked the Cabinet Office whether it intends to reduce departments’ spending on consultants, which has been high and increasing following Brexit and COVID-19. The Cabinet Office told us it has a strong programme to try and cut the external spend, and that departments should only use external staff when they offer unique skills which would not be efficient to have permanently within government.39 The Cabinet Office aims to develop skills and capability within government and make better use o...

We asked the Cabinet Office whether it intends to reduce departments’ spending on consultants, which has been high and increasing following Brexit and COVID-19. The Cabinet Office told us it has a strong programme to try and cut the external …

We asked the Cabinet Office how it is going to deal with the constraints of inconsistent and poor-quality data and legacy systems in tracking the progress of efficiency plans, as described in the National Audit Office’s report.51 The Cabinet Office told us that these are huge issues for government, which will probably require multiple Spending Review cycles to properly address, and that it is making big investments in these areas as part of the upcoming Spending Review. For example, the Cabin...

We asked the Cabinet Office how it is going to deal with the constraints of inconsistent and poor-quality data and legacy systems in tracking the progress of efficiency plans, as described in the National Audit Office’s report.51 The Cabinet Office …

The report by the National Audit Office emphasises the need for efficiency to remain a priority on an ongoing basis, rather than only being taken seriously at major fiscal events such as Spending Reviews.53 The report describes the need for system incentives to be in place, with leadership behaviour that encourages continuous improvement, and that continuous improvement should involve all levels of an organisation.54 We asked the Treasury and Cabinet Office how they will encourage government ...

The report by the National Audit Office emphasises the need for efficiency to remain a priority on an ongoing basis, rather than only being taken seriously at major fiscal events such as Spending Reviews.53 The report describes the need for …

The Department appointed a contractor without properly understanding whether it could deliver. The Department undertook a rapid procurement for a grant administrator, who would develop a digital voucher application system for the Scheme. None of the bidders for the contract thought it was possible to fully implement a digital system in time for the launch, and so the Department launched a complex scheme without an IT platform that had been fully developed and tested. The Department’s chosen g...

The Department appointed a contractor without properly understanding whether it could deliver. The Department undertook a rapid procurement for a grant administrator, who would develop a digital voucher application system for the Scheme. None of the bidders for the contract …

Due to the 12-week timescale for implementing the Scheme, the Department had limited time to procure a Scheme Administrator who would develop a digital voucher application system and process applications. The Department received three bids, but none of the bidders thought it was possible to fully implement a digital system in time for the launch. As a result, the Department allowed bidders to steadily deliver elements of the system in stages. Whereas other bidders thought fully implementing a...

Due to the 12-week timescale for implementing the Scheme, the Department had limited time to procure a Scheme Administrator who would develop a digital voucher application system and process applications. The Department received three bids, but none of the bidders …

As a result, the Department awarded the contract to ICF, accepting it’s accelerated timetable for completion, whilst also putting in place a manual processing facility as a contingency in case the timetable overran.74 ICF subsequently struggled to implement the required voucher application system, meaning that greater amounts of manual processing were needed for voucher applications. This contributed to the delays that homeowners and installers faced in engaging with the Scheme.75

As a result, the Department awarded the contract to ICF, accepting it’s accelerated timetable for completion, whilst also putting in place a manual processing facility as a contingency in case the timetable overran.74 ICF subsequently struggled to implement the required …

Despite the Department appointing a contractor which could not deliver the system, the Department felt its procurement process was run successfully overall.76 In response to ICF’s proposed costs being far below the other two bidders, the Cabinet Office undertook a low-cost review of the scheme administrator’s bid during the procurement. Its review stated that the Department should undertake further technical assessment on 70 Qq 55–59 71 Qq 53–55, 58, Note dated 1 October 2021 from Department ...

Despite the Department appointing a contractor which could not deliver the system, the Department felt its procurement process was run successfully overall.76 In response to ICF’s proposed costs being far below the other two bidders, the Cabinet Office undertook a …

The Department stated that at the time of the procurement, it appeared that ICF had a ready-made system that had already been used on over 100 grant schemes in the US and Canada, and which could quickly and cheaply be amended to suit the Department’s needs.79 The Department did not follow up with any of the organisations contracting with ICF as it felt appropriate referencing would have been completed when ICF were qualified for the Crown Commercial Service framework it used for the procureme...

The Department stated that at the time of the procurement, it appeared that ICF had a ready-made system that had already been used on over 100 grant schemes in the US and Canada, and which could quickly and cheaply be …

Our work on the government’s response to the COVID-19 pandemic has demonstrated that there are important lessons to be learnt to improve government’s ability to respond to future emergencies and its business-as-usual service delivery. In 2021, as part of our Initial lessons from the government’s response to the COVID-19 pandemic inquiry, we highlighted the importance of being clear about risk appetite and risk tolerance, particularly as government was having to make decisions quickly at the s...

Our work on the government’s response to the COVID-19 pandemic has demonstrated that there are important lessons to be learnt to improve government’s ability to respond to future emergencies and its business-as-usual service delivery. In 2021, as part of our …

The Department will not secure a step change in performance until it can recruit and retain the highly skilled staff that it requires. The Department continues to suffer from skills shortages in key areas critical to effective contract and programme management. It relies on expensive temporary contractors to deliver many of its programmes. We note that the cost of staff is small in comparison to the cost of the programmes the Department delivers. It pointed to constraints on its ability to re...

The Department will not secure a step change in performance until it can recruit and retain the highly skilled staff that it requires. The Department continues to suffer from skills shortages in key areas critical to effective contract and programme …

The Department has ambitions to improve delivery performance through use of ‘agile’ procurement—delivery methods where the requirement and solutions are developed collaboratively in discrete steps with flexibility around requirements, cost and schedule. However, delivery teams found that agile approaches were incompatible with the Department’s emphasis on certainty of output and cost. Two of the Department’s digital programmes teams—New Style of IT (Deployed) and Morpheus—identified a range o...

The Department has ambitions to improve delivery performance through use of ‘agile’ procurement—delivery methods where the requirement and solutions are developed collaboratively in discrete steps with flexibility around requirements, cost and schedule. However, delivery teams found that agile appro

The Department has relatively more ambitious savings targets of £628 million over the next 10 years for its ‘category management’ programme. Category management involves grouping together related products and services into market ‘segments’ to generate efficiencies. The Department’s earlier attempt at introducing the practice in 2004 achieved significant efficiencies, but ultimately failed because the processes required to embed the programme were not established by the time start-up funding ...

The Department has relatively more ambitious savings targets of £628 million over the next 10 years for its ‘category management’ programme. Category management involves grouping together related products and services into market ‘segments’ to generate efficiencies. The Department’s earlier attempt

Having the right people in place to manage suppliers is essential to ensure programme progress and to hold suppliers to account. However, many of the Department’s programmes were reliant on temporary contractors to fill these roles, especially in the Department’s digital projects and programmes. In two of these—New Style of IT (Deployed) and Morpheus—temporary contractors made up 79% and 58% of posts respectively.49 Under the Department’s previous information strategy, it took on more respons...

Having the right people in place to manage suppliers is essential to ensure programme progress and to hold suppliers to account. However, many of the Department’s programmes were reliant on temporary contractors to fill these roles, especially in the Department’s …

The Department is also reliant on contractors on some of its maritime programmes, where between one sixth and one third of staff working on the Spearfish, Type 31e frigate and Fleet Solid Support programme teams are contractors. The Department puts this down to the burden of several major programmes being launched concurrently. It explained that it can draw on framework contracts for specialist skills where needed and that it is committed to reducing spend on temporary contractors.52 We asked...

The Department is also reliant on contractors on some of its maritime programmes, where between one sixth and one third of staff working on the Spearfish, Type 31e frigate and Fleet Solid Support programme teams are contractors. The Department puts …

Senior responsible owners (SROs) have responsibility for ensuring a programme meets its objectives. SROs oversee governance of programmes and steer them through key decision points, assisted by a delivery team. The NAO’s analysis showed that the median time in post for an SRO was 22 months, against median programme length of 77 months, reflecting the career path requirements of the senior officers who fill most SRO roles. A recent departmental survey found that many SROs did not feel empowere...

Senior responsible owners (SROs) have responsibility for ensuring a programme meets its objectives. SROs oversee governance of programmes and steer them through key decision points, assisted by a delivery team. The NAO’s analysis showed that the median time in post …

NHST&T’s continued over-reliance on consultants is likely to cost taxpayers hundreds of millions of pounds. Our previous report found that NHST&T was overly reliant on expensive contractors and temporary staff and recommended that it needed to reduce this. Despite NHST&T committing to reduce the number of consultants it employed, the number of consultants employed was higher in April 2021 (2,239) than in December 2020 (2,164). The Department pays consultants an average of £1,100 per day but s...

NHST&T’s continued over-reliance on consultants is likely to cost taxpayers hundreds of millions of pounds. Our previous report found that NHST&T was overly reliant on expensive contractors and temporary staff and recommended that it needed to reduce this. Despite NHST&T …

Our first report on NHST&T concluded that it was overly reliant on expensive contractors and temporary staff. We found that by October 2020, it had signed 407 contracts worth £7 billion with 217 public and private organisations. By the end of December 2020, this had risen to over 600 contracts. We recommended that NHST&T should put 36 Qq 170–174, 178 ; C&AG’s Report, para 21 37 Qq 172–173, C&AG’s Report, para 21, 4.18 38 Q 154; C&AG;s Report para 8, 1.13–1.14 39 Q 119; C&AG’s report para 2.19...

Our first report on NHST&T concluded that it was overly reliant on expensive contractors and temporary staff. We found that by October 2020, it had signed 407 contracts worth £7 billion with 217 public and private organisations. By the end …

We therefore asked our witnesses why NHST&T’s use of consultants continued to be so high. The previous Head of NHST&T explained that up to the end of May 2021, 196 (37%) of the 523 recruitment campaigns run by NHST&T failed to appoint anyone. They told us that this was because the skills NHST&T was trying to recruit for, in data, digital, and operational and project delivery roles, were in short supply in the civil service. They explained that as part of reducing the number of consultants, it...

We therefore asked our witnesses why NHST&T’s use of consultants continued to be so high. The previous Head of NHST&T explained that up to the end of May 2021, 196 (37%) of the 523 recruitment campaigns run by NHST&T failed …

In 2019, the Department ended its 10-year contract with its Strategic Business Partner, led by Capita, five years early because the contract was not delivering expected savings and improvements in running the DIO.12 This created a gap in the skills and capabilities that the Department needs. It is seeking to build in-house capabilities to fill this gap but, at present, it remains reliant on contractors. Overall, the Department has 168 staff working on the strategic management of the defence e...

In 2019, the Department ended its 10-year contract with its Strategic Business Partner, led by Capita, five years early because the contract was not delivering expected savings and improvements in running the DIO.12 This created a gap in the skills …

Poor data and legacy IT are a barrier to effective oversight of its arm’s-length bodies. There are real risks to departments as a result of aging IT systems, including threats to resilience and inconsistencies in data presentation and comparability. Legacy IT systems can also lead to issues in identifying and collecting the right data, which is crucial to understanding the costs and benefits of different delivery approaches, and for departments to be able to manage their ALBs effectively. In ...

Poor data and legacy IT are a barrier to effective oversight of its arm’s-length bodies. There are real risks to departments as a result of aging IT systems, including threats to resilience and inconsistencies in data presentation and comparability. Legacy …

The current public appointments process does not give confidence that it is efficient, transparent and fair. Following the Grimstone Review and the Committee’s 2016 recommendations, the Cabinet Office developed a Governance Code on public appointments which established the process that departments should follow. However, it currently does not check whether its Code is being followed across government. It does not collect data on whether ministers have overridden advice on public appointments,...

The current public appointments process does not give confidence that it is efficient, transparent and fair. Following the Grimstone Review and the Committee’s 2016 recommendations, the Cabinet Office developed a Governance Code on public appointments which established the process that …

Extracting data from aging IT systems is expensive, sometimes impossible, and it is costly to combine data from different systems.36 As a result, comparable data is not readily available to the Cabinet Office and HM Treasury on the different types of delivery model the government is using, nor the amount of funding that flows through each type on an annual basis. Having these data would help the centre of government better understand and evaluate successful policy delivery and identify the co...

Extracting data from aging IT systems is expensive, sometimes impossible, and it is costly to combine data from different systems.36 As a result, comparable data is not readily available to the Cabinet Office and HM Treasury on the different types …

Recent controversy around the appointment of non-executive directors to departmental boards has raised questions about whether the public appointments process is fit for purpose.39 When this Committee last reported on ALBs in 2016, we recommended that Cabinet Office should streamline the public appointments process and that it should update us on progress in implementing the Grimstone Review.40 The Cabinet Office told us that in 2016, in response to the Grimstone Review, it published a Govern...

Recent controversy around the appointment of non-executive directors to departmental boards has raised questions about whether the public appointments process is fit for purpose.39 When this Committee last reported on ALBs in 2016, we recommended that Cabinet Office should streamline …

Good governance involves groups that are diverse and represent a wide range of people and opinions. There has also been recent criticism of the lack of diversity in the civil service, a problem which is clearly apparent when looking at public appointments. When asked, the Cabinet Office could not set out a clear plan for how it would improve the diversity of public appointments. The Cabinet Office has committed to developing a new website for public appointments and a new application tracking...

Good governance involves groups that are diverse and represent a wide range of people and opinions. There has also been recent criticism of the lack of diversity in the civil service, a problem which is clearly apparent when looking at …

Government’s ability to make well-informed decisions and address issues as they arise during the pandemic has been hampered by slow progress in addressing longstanding issues with data and legacy IT. We have repeatedly highlighted longstanding data issues within government, including the lack of data standards, ageing IT systems, fragmented leadership, and a culture that does not support sharing data across departmental boundaries. These issues came to a head during the pandemic. For instance...

Government’s ability to make well-informed decisions and address issues as they arise during the pandemic has been hampered by slow progress in addressing longstanding issues with data and legacy IT. We have repeatedly highlighted longstanding data issues within government, including …

We have repeatedly highlighted longstanding issues with the quality of data held by government and with its ability to use data effectively to support policy interventions. In our 2019 report Challenges in using data across government, we noted the lack of government-wide data standards, ageing IT systems, fragmented leadership, and a culture that does not support sharing data across departmental boundaries.26 In its response, the government agreed to appoint a Chief Data Officer who would ac...

We have repeatedly highlighted longstanding issues with the quality of data held by government and with its ability to use data effectively to support policy interventions. In our 2019 report Challenges in using data across government, we noted the lack …

All of the witnesses highlighted the importance of data in responding to the pandemic and acknowledged a key lesson from the last year was the need to improve the quality of data available to citizens and to government, including the quality and granularity of regional economic data, and improving the ability of different systems to talk to each other. Witnesses highlighted several initiatives that government is undertaking to achieve this. In addition to HMRC’s longstanding Making Tax Digita...

All of the witnesses highlighted the importance of data in responding to the pandemic and acknowledged a key lesson from the last year was the need to improve the quality of data available to citizens and to government, including the …

This Committee has previously raised the issue of consultants and the sorts of work they are hired to perform in Government. There is nothing unusual in a large organisation hiring external consultants to fulfil specialist roles or provide expertise in supporting the work of the Civil Service. Lex Greensill was recruited to provide advice on an area of prospective policy in which he could legitimately claim expertise and which the Civil Service lacked.

This Committee has previously raised the issue of consultants and the sorts of work they are hired to perform in Government. There is nothing unusual in a large organisation hiring external consultants to fulfil specialist roles or provide expertise in …

Given that ARGA is not going to be set up until 2023 at the earliest, we pressed the Department on what would happen in the interim. The Department acknowledged that it would take time to establish ARGA, and that doing so would require legislation.46 It accepted the importance of having stronger system leadership during the transition to establishing ARGA. The Department reported that, in the interim, it would chair a liaison committee to bring responsible bodies together. It recognised the n...

Given that ARGA is not going to be set up until 2023 at the earliest, we pressed the Department on what would happen in the interim. The Department acknowledged that it would take time to establish ARGA, and that doing …

The Department cannot explain the additional benefit it has received from its contract with a professional services firm to perform due diligence on charity applications to The National Lottery Challenge Fund (TNLCF). TNLCF is an organisation that is experienced in distributing funding, which formed part of the justification by the Department in selecting them as a partner. But the Department paid PwC £2 million for specialist support on data collection, analytical support and due diligence, ...

The Department cannot explain the additional benefit it has received from its contract with a professional services firm to perform due diligence on charity applications to The National Lottery Challenge Fund (TNLCF). TNLCF is an organisation that is experienced in …

We questioned the Department about how it decided which bids from other government departments it would provide funding for. Special advisers were invited to discuss the initial assessments from the Department’s officials before final advice was given to Ministers.15 Correspondence from the Department showed that in the meeting to discuss bids five special advisers were present alongside officials from the Department, HM Treasury and the Prime Minister’s Office.16 The Department told us that ...

We questioned the Department about how it decided which bids from other government departments it would provide funding for. Special advisers were invited to discuss the initial assessments from the Department’s officials before final advice was given to Ministers.15 Correspondence …

The Department paid £2 million in 2020–21 to a professional services firm, PwC, to provide support on grants and operations, including checks on awards made by TNLCF for the Coronavirus Community Support Fund (CCSF).38 We asked why this additional support had been needed and how the Department ensured that it was not duplicating work already being undertaken elsewhere. The Department said that this support was not designed to take over jobs from civil servants and that the majority of the adm...

The Department paid £2 million in 2020–21 to a professional services firm, PwC, to provide support on grants and operations, including checks on awards made by TNLCF for the Coronavirus Community Support Fund (CCSF).38 We asked why this additional support …

In 2019, the Department announced that to achieve government’s target of 2.4% both public and private R&D investment would need to rise to around £60 billion.26We asked witnesses how, and by when, it was going to increase funding to meet the target. The Department told us that it hoped to start to see significant increases in public investment in R&D in the next dataset published by the Office for National Statistics, which would cover

In 2019, the Department announced that to achieve government’s target of 2.4% both public and private R&D investment would need to rise to around £60 billion.26We asked witnesses how, and by when, it was going to increase funding to meet …

NHS Digital created the first iteration of the list of some 900,000 people within two days using readily accessible data sources—hospital, maternity and prescribed medicines data. By 12 April 2020, three weeks after shielding began, a further 420,000 people had 7 Q 17; C&AG’s report para 2.3 8 Qq 13, 17 9 Q 17 10 Qq 3–4, 13–14 11 C&AG’s Report, Figure 14. 12 Qq 14–15. 13 https://www.gov.uk/government/news/new-technology-to-help-identify-those-at-high-risk-from-covid-19 14 Q93; C&AG’s report, ...

NHS Digital created the first iteration of the list of some 900,000 people within two days using readily accessible data sources—hospital, maternity and prescribed medicines data. By 12 April 2020, three weeks after shielding began, a further 420,000 people had …

Many authorities currently lack the skills, expertise and capabilities to successfully deliver PFI contract expiry, with locally managed contracts most at risk. The IPA recognises that there is a huge demand for skills, expertise and capabilities in contract management—all of which are currently in short supply. Contracts owned by local bodies, which represent over 80% of the total portfolio, are the most concerning because expertise has dwindled as resources are prioritised elsewhere. Local ...

Many authorities currently lack the skills, expertise and capabilities to successfully deliver PFI contract expiry, with locally managed contracts most at risk. The IPA recognises that there is a huge demand for skills, expertise and capabilities in contract management—all of …

The IPA recognised that more support was needed to address the “huge demand” for expertise, skills and capability in contract management—all of which were currently insufficient. It explained that contracts owned by local bodies, which made up more than 80% of all PFI contracts, were “the most concerning area” as local bodies’ investment in contract management expertise had “not always kept pace with the extent required”.25 Local Partnerships added that the best prepared authorities were thos...

The IPA recognised that more support was needed to address the “huge demand” for expertise, skills and capability in contract management—all of which were currently insufficient. It explained that contracts owned by local bodies, which made up more than 80% …

We have previously recommended that the Department should improve its financial skills and asked what progress had been made.34 The Department had not increased the number of professionally qualified finance staff, and said it was unhappy that the proportion of finance staff with a professional qualification remained at 41%, the same as last year.35 The Army, Navy and Royal Air Force also had staff shortages in their finance sections, with one third of Equipment Plan-related posts vacant. The...

We have previously recommended that the Department should improve its financial skills and asked what progress had been made.34 The Department had not increased the number of professionally qualified finance staff, and said it was unhappy that the proportion of …

The Department claimed it has fulfilled previous Committee recommendations, albeit that it accepted that some improvements were on-going.42 The National Audit Office has found that the Department has made improvements to its analysis and reporting, for example improving the presentation and transparency of its Equipment Plan report.43 However, the Department could not demonstrate that its quality assurance work had ensured that the Plan was based on consistent and fully documented data and as...

The Department claimed it has fulfilled previous Committee recommendations, albeit that it accepted that some improvements were on-going.42 The National Audit Office has found that the Department has made improvements to its analysis and reporting, for example improving the presentation …

The Department’s failure to deliver the Digital Services at the Border programme by March 2019 was caused by a lack of effective leadership, management and oversight. The Department accepts that the Digital Services at the Border programme did not achieve value for money up to 2019, with none of the three 6 Digital Services at the Border systems being delivered as planned. It failed to respond to or address risks that were flagged to the programme board. There have been three Accounting Offic...

The Department’s failure to deliver the Digital Services at the Border programme by March 2019 was caused by a lack of effective leadership, management and oversight. The Department accepts that the Digital Services at the Border programme did not achieve …

The Department has struggled to deliver the core technical components of the Digital Services at the Border programme. The Department has faced repeated problems with the technical aspects of delivery which means it has continued to depend on existing suppliers and extending contracts, with further cost implications. It struggled for several years to find a workable technical solution for storing secret data following the change of data security classification. The Department was also slow to...

The Department has struggled to deliver the core technical components of the Digital Services at the Border programme. The Department has faced repeated problems with the technical aspects of delivery which means it has continued to depend on existing suppliers …

We see a clear risk that the Department will not be able to deliver the programme by the end of March 2022. The Department started its latest rollout of the Border Crossing system on time, but it has so far reached only 300 frontline users at 7 locations out of an intended 7,000 at 56 locations by June 2021. It still has no proof that systems can cope with passenger volumes that existed prior to COVID-19, let alone the 6% annual growth in the volume of passengers it is allowing for above the ...

We see a clear risk that the Department will not be able to deliver the programme by the end of March 2022. The Department started its latest rollout of the Border Crossing system on time, but it has so far …

Based on a report by the Comptroller & Auditor General we took evidence from the Home Office (the Department), including from Border Force, on progress with the Digital Services at the Border (DSAB) programme.1

Based on a report by the Comptroller & Auditor General we took evidence from the Home Office (the Department), including from Border Force, on progress with the Digital Services at the Border (DSAB) programme.1 Type: conclusion | Number: 1 | …

The Department acknowledged that by the time of its reset, the programme had not delivered the value for money that had originally been intended. The Department had delivered none of the three systems that it had intended to deliver on time.19 The programme removed two of these systems from the scope in the reset, moving their capability to other programmes within the Department which will deliver later than the Digital Services at the Border Programme.20

The Department acknowledged that by the time of its reset, the programme had not delivered the value for money that had originally been intended. The Department had delivered none of the three systems that it had intended to deliver on …

The Department acknowledged that it has faced strong competition for people with the scarce technical skills required to deliver the programme, including from other government departments. The Department has now designed framework contracts with outside suppliers so that it is the responsibility of the suppliers to provide the right people with the right skills to support the programme.31 To support its skills base the programme has building the working relationship between the Department’s D...

The Department acknowledged that it has faced strong competition for people with the scarce technical skills required to deliver the programme, including from other government departments. The Department has now designed framework contracts with outside suppliers so that it is …

Access to the high-priority lane was based on recommendations coming from government officials, ministers’ offices, MPs and members of the House of Lords. The NAO found that there were no written rules which determined the basis on which suppliers should be recommended for the lane, meaning that it was left to the judgment of individuals putting forward the leads. Committee members noted that when MPs passed on leads they were not necessarily based on personal experience or expertise in PPE p...

Access to the high-priority lane was based on recommendations coming from government officials, ministers’ offices, MPs and members of the House of Lords. The NAO found that there were no written rules which determined the basis on which suppliers should …

The Government’s ‘5G Supply Chain Diversification Strategy’ provides an overview of the Government’s intentions for addressing the current lack of vendors in the UK’s 5G infrastructure equipment market. The Government itself acknowledges that this will take time. Although the decision to forbid the use of 5G equipment procured from Huawei after 2020 was made following US sanctions announced in May 2020, the potential threat from telecommunications infrastructure supplied by foreign vendors an...

The Government’s ‘5G Supply Chain Diversification Strategy’ provides an overview of the Government’s intentions for addressing the current lack of vendors in the UK’s 5G infrastructure equipment market. The Government itself acknowledges that this will take time. Although the decision …

Skills gaps in departments and arm’s length bodies jeopardise government’s capacity to deliver on its environmental ambitions. Progress towards environmental goals requires skills across government, and particularly in arm’s length bodies who have key responsibility for delivery of the goals. The Environment Agency has a particular risk of skills loss in nuclear and hazardous waste management, partly due to its inability to pay the market rate offered in the private sector. Moreover, there is...

Skills gaps in departments and arm’s length bodies jeopardise government’s capacity to deliver on its environmental ambitions. Progress towards environmental goals requires skills across government, and particularly in arm’s length bodies who have key responsibility for delivery of the goals. …

We welcome the IPA’s plans to strengthen how it assures government’s major projects and the recent clarification of it roles and responsibilities, but it remains to be seen whether the IPA will be able to effectively ensure those delivering projects make the level of improvement required. In the past, we have raised concerns that the IPA is not sufficiently independent of government to confidently challenge it, being both a champion of government project delivery as well as being responsible ...

We welcome the IPA’s plans to strengthen how it assures government’s major projects and the recent clarification of it roles and responsibilities, but it remains to be seen whether the IPA will be able to effectively ensure those delivering projects …

The calibre and number of people in leadership positions in major projects is still not strong enough. Skills and leadership remain a persistent problem in delivering major projects, particularly in getting the appropriate mix of skills across areas such as civil engineering and digital systems. While the tenure of Senior Responsible Owners (SROs) has improved slightly in recent years, SROs still typically manage four or five different projects and so do not get the time to manage them effect...

The calibre and number of people in leadership positions in major projects is still not strong enough. Skills and leadership remain a persistent problem in delivering major projects, particularly in getting the appropriate mix of skills across areas such as …

Skills and leadership remain a persistent problem in delivering major projects. Our report on specialist skills in the civil service concluded that skills shortages were responsible for delays, inefficiencies and increased costs in government projects, with the lack of skills in the Home Office partly responsible for the 3-year delay to the Emergency Services Network programme.26 The IPA also stated that government has not got the right level of skills and experience to deliver some of its di...

Skills and leadership remain a persistent problem in delivering major projects. Our report on specialist skills in the civil service concluded that skills shortages were responsible for delays, inefficiencies and increased costs in government projects, with the lack of skills …

However, the IPA stated that many SROs manage more than one programme, and typically have four or five, which means they are “not being afforded the time in role to do the necessary work.”30 The IPA said that government needed to recruit 25 to 35 more senior responsible owners with the requisite expertise and deploy them to critical programmes. Getting the right skills at the right time can also be a challenge; for instance, skills relevant to a civil engineering stage of a programme may be l...

However, the IPA stated that many SROs manage more than one programme, and typically have four or five, which means they are “not being afforded the time in role to do the necessary work.”30 The IPA said that government needed …

The IPA told us that, to remedy this issue, in addition to making attendance at the Major Projects Leadership Academy mandatory for SROs, the IPA aims to give them an assessment and an accreditation to ensure that they have the necessary skills for their roles. This is in addition to introducing the Government Projects Academy next year, which is aimed at improving project delivery skills for professionals across government.32 24 Comptroller and Auditor General, Lessons learned from major pro...

The IPA told us that, to remedy this issue, in addition to making attendance at the Major Projects Leadership Academy mandatory for SROs, the IPA aims to give them an assessment and an accreditation to ensure that they have the …

There is still a long way to go to ensure the civil service retains and promotes those from different backgrounds. The more diverse an organisation, the better decisions it makes. The civil service has made a commitment to be more diverse at all levels across both departments and functions. To achieve this the Cabinet Office says it has made its recruitment processes fairer. This includes changes to how and where jobs are advertised, and to how interviews and selections are conducted. Functio...

There is still a long way to go to ensure the civil service retains and promotes those from different backgrounds. The more diverse an organisation, the better decisions it makes. The civil service has made a commitment to be more …

Seven years on from their introduction, functions still have not developed clear plans to help maximise their impact, and lack strategic direction. The Department requires all functions to put in place their own ‘capability blueprint’. Blueprints should include a clear operating model and set out the organisational capacity for each function. They are also an important tool in managing coordination between functions and departments. So far, only the Commercial function has a blueprint, with t...

Seven years on from their introduction, functions still have not developed clear plans to help maximise their impact, and lack strategic direction. The Department requires all functions to put in place their own ‘capability blueprint’. Blueprints should include a clear …

Only a few of the fourteen functions have been able to demonstrate the benefits of their activities. Most functions have not been able to quantify their costs and benefits. The Cabinet Office admits there are difficulties measuring the impact of some functions, such as the HR function. Progress has been made in some areas: the Commercial function regularly collects data on the cost and benefits of its work and has a mature process for evidencing benefits; and the Digital function has undertak...

Only a few of the fourteen functions have been able to demonstrate the benefits of their activities. Most functions have not been able to quantify their costs and benefits. The Cabinet Office admits there are difficulties measuring the impact of …

The more diverse the people in an organisation, the better run it is and the better decisions it makes. As part of the Civil Service Diversity and Inclusion Strategy the civil service has committed to setting and working towards targets to increase the flow of ethnic minority and disabled staff into the senior civil service. The Cabinet Office explained that the functions play an important role in improving diversity by setting clear standards for recruitment and career pathways. It also told...

The more diverse the people in an organisation, the better run it is and the better decisions it makes. As part of the Civil Service Diversity and Inclusion Strategy the civil service has committed to setting and working towards targets …

The Cabinet Office also recognised the importance of retention. One of its key aims is to look at how people progress within the civil service once they are in post. The Cabinet Office acknowledged it can take three to five years for someone to fully understand their role, and stated that this is the minimum amount of time they would like to see individuals stay in a post if possible.20 The Cabinet Office told us that introducing pay flexibilities had greatly improved retention levels within ...