Select Committee · Public Accounts Committee

Challenges in implementing digital change

Status: Closed Opened: 6 Sep 2021 Closed: 1 Mar 2022 10 recommendations 10 conclusions 1 report

Government plans to transform public services are increasingly led by digitally-enabled business change, and it is essential that public bodies deliver high quality digital services in a time when our way of life is increasingly digital. But a recent NAO report found that in “25 years of government strategies and countless attempts to deliver digital … Show more

Reports

1 report
Title HC No. Published Items Response
Thirtieth Report - Challenges in implementing digital change HC 637 10 Dec 2021 20 Responded

Recommendations & Conclusions

20 items
2 Recommendation Thirtieth Report - Challenges in implem… Not Addressed

There is no clear plan to replace or modernise legacy systems and data that are...

There is no clear plan to replace or modernise legacy systems and data that are critical to service provision but are often old, unsupportable, vulnerable and a constraint on transformation. Legacy systems, some of which date back to the 1970s, are widespread across government, which relies on them for important … Read more

Government response AI summary
Despite stating agreement with the recommendation to map and prioritise legacy IT systems and providing a target implementation date of January 2023, the government's subsequent explanation discusses environmental targets and the Environment Act 2021, which is entirely unrelated to the committee's recommendation.
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HM Treasury
3 Recommendation Thirtieth Report - Challenges in implem… Not Addressed

Departments have failed to understand the difference between improving what currently exists and real digital...

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 … Read more

Government response AI summary
The government's response for this item quotes a different PAC conclusion regarding skills shortages, and does not address the committee's recommendation for a structured approach to distinguish between incremental and transformational digital changes.
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HM Treasury
4 Recommendation Thirtieth Report - Challenges in implem… Not Addressed

Digital programmes often fail to have their own single programme office to support the programme...

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 … Read more

Government response AI summary
The government's response quotes a different PAC conclusion regarding departments struggling to track benefits and costs, completely failing to address the recommendation for the Cabinet Office to develop guidance on legacy integration and mandate design/data controls.
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HM Treasury
5 Recommendation Thirtieth Report - Challenges in implem… Not Addressed

Departments have failed to develop a modern professional approach to IT operations needed to support...

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 … Read more

Government response AI summary
The government's response quotes a different PAC conclusion about government efficiency drives, and does not address the recommendation for the Central Digital and Data Office to outline improvements for departments' IT operations and change maturity.
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HM Treasury
6 Recommendation Thirtieth Report - Challenges in implem… Not Addressed

There is a large gap between the demand for and supply of the digital specialists...

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 … Read more

Government response AI summary
The government's response did not address the recommendation for the Central Digital and Data Office to report on its capability strategy and progress metrics, instead restating a previous PAC conclusion.
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HM Treasury
1 Conclusion Thirtieth Report - Challenges in implem… Not Addressed

On the basis of a report by the Comptroller and Auditor General, we took evidence...

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

Government response AI summary
The government's response quotes a different PAC conclusion about efficiency drives and cost shunting, and does not address the committee's introductory statement about the evidence session on digital change challenges.
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HM Treasury
7 Conclusion Thirtieth Report - Challenges in implem… Not Addressed

Many of the systems government use are not really geared up to modern technology and...

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 … Read more

Government response AI summary
The government's response directly addresses PAC recommendation #2 (regarding mapping and prioritising legacy IT systems) by agreeing, setting a target date of December 2022, detailing a £2.6 billion investment, and outlining plans for a common methodology for identifying legacy risk and remediation, which is not …
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HM Treasury
8 Recommendation Thirtieth Report - Challenges in implem… Accepted

The risks associated with legacy systems include that they can be difficult and expensive to...

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 … Read more

Government response AI summary
The government accepted the recommendation, committing to work with departments to map and prioritise high-risk legacy systems, establish a common methodology by the end of 2022, and agree remediation plans, with progress monitored through quarterly reviews.
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HM Treasury
9 Conclusion Thirtieth Report - Challenges in implem… Accepted

Departments typically do not have a good understanding of their IT estate, legacy systems are...

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, … Read more

Government response AI summary
The government accepted the implicit recommendation to map and prioritise legacy IT systems, committing the CDDO to establish a common methodology and agree remediation plans across departments by the end of 2022.
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HM Treasury
10 Conclusion Thirtieth Report - Challenges in implem… Not Addressed

The Cabinet Office concedes that too often operations and services fail to recognise the fundamental...

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 … Read more

Government response AI summary
The government's response directly addresses PAC recommendation #2 (regarding mapping and prioritising legacy IT systems) by agreeing, setting a target date of December 2022, detailing a £2.6 billion investment, and outlining plans for a common methodology for identifying legacy risk and remediation, which is not …
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HM Treasury
11 Recommendation Thirtieth Report - Challenges in implem… Accepted

Government has developed several systems to meet new requirements, such as for checking and processing...

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 … Read more

Government response AI summary
The government agrees with the recommendation to develop more joined-up systems, setting an implementation target of end-December 2022. It outlines plans for wholesale digital transformation led by CDDO, including establishing funding and governance models, prioritising automation opportunities, and identifying critical services for transformation.
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HM Treasury
12 Recommendation Thirtieth Report - Challenges in implem… Accepted

The Cabinet Office pointed to the role that central platforms such as GOV.UK Pay and...

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 … Read more

Government response AI summary
The government agrees with the need for deeper transformation and better skills, setting an implementation target of end-December 2022. It outlines plans for wholesale digital transformation led by CDDO, which will include identifying critical services for redesign and providing targeted interventions to achieve more fundamental …
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HM Treasury
13 Recommendation Thirtieth Report - Challenges in implem… Accepted

Government has not properly structured and resourced technology departments against good standards.

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 … Read more

Government response AI summary
The government accepted the recommendation, committing to develop guidance on legacy integration and mandate rigorous design, data, and infrastructure controls, with CDDO working with departments to improve management of large-scale transitions and monitoring adherence by the end of December 2022.
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HM Treasury
14 Conclusion Thirtieth Report - Challenges in implem… Accepted

Government’s central digital functions are relatively immature.

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 … Read more

Government response AI summary
The government accepted the implicit recommendation to strengthen central digital oversight, committing the CDDO to work with departments to improve large-scale programme management and monitor the cross-government legacy estate by the end of 2022.
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HM Treasury
15 Recommendation Thirtieth Report - Challenges in implem… Accepted

According to a recent report, government has had to rely on external contractors and consultants...

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 … Read more

Government response AI summary
The government agrees with the recommendation to create a strong central team for digital standards and has a target implementation date of Summer 2022. It is publishing an updated DDaT Functional Standard and Assessment Framework and working on more detailed guidance and a DDaT Playbook.
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HM Treasury
16 Conclusion Thirtieth Report - Challenges in implem… Accepted

Funding for departmental technology functions is often not allocated in a way that enables them...

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, … Read more

Government response AI summary
The government agrees with the observation and is investing £2.6 billion in cyber and legacy IT. CDDO is establishing a common methodology for identifying legacy risk by the end of 2022 and will work with departments to agree and monitor remediation plans.
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HM Treasury
17 Conclusion Thirtieth Report - Challenges in implem… Not Addressed

Government accepts that it is important to have deep digital, data and technology expertise preserved...

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 … Read more

Government response AI summary
The government's response for this item addresses a different recommendation (PAC recommendation 5) regarding the DDaT Office setting out improvements for IT operations, rather than the provided conclusion on excessive outsourcing and thinly resourced internal capability.
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HM Treasury
18 Conclusion Thirtieth Report - Challenges in implem… Accepted

Departments have made technology choices too early in the life of digital programmes before they...

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 … Read more

Government response AI summary
The government agrees and CDDO is working to implement systemic changes by the end of 2022, focusing on funding, business, and governance models for digital transformation. CDDO will also support departments in prioritising automation opportunities and transforming critical public services.
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HM Treasury
19 Conclusion Thirtieth Report - Challenges in implem… Accepted

Ten years ago, government had little in-house digital capability and outsourced most technology programmes.47 The...

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 … Read more

Government response AI summary
The government accepted the recommendation to improve departments’ approach to IT operations, setting a Summer 2022 target for implementing an updated DDaT Functional Standard and Assessment Framework.
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HM Treasury
20 Conclusion Thirtieth Report - Challenges in implem… Not Addressed

The Cabinet Office accepted that government still has a capability problem and is not as...

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 … Read more

Government response AI summary
The government's response addresses PAC recommendation #6 (regarding measuring progress against the DDaT Capability strategy) by agreeing to report metrics within six months, and outlining initiatives such as a 'single front door' for recruitment and a new digital training academy, which is not a direct …
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HM Treasury

Oral evidence sessions

1 session
Date Witnesses
23 Sep 2021 Alex Chisholm · Cabinet Office, Angela MacDonald · HMRC, Joanna Davinson · Cabinet Office, Tom Read · Government Digital Service View ↗

Who gave evidence

4 witnesses
WitnessOrganisationSessions
Alex Chisholm · Chief Operating Officer Civil Service and Permane… Cabinet Office 1
Angela MacDonald · Deputy Chief Executive and Second Permanent Secre… HMRC 1
Joanna Davinson · interim Government Chief Digital Officer Cabinet Office 1
Tom Read · Chief Executive Officer Government Digital Service 1