Select committee: Public Accounts Committee
Recommendation 2
67th Report - NS&I’s transformation programme
Published 13 Feb 2026
Addressed to HM Treasury
Public Accounts Committee NS&I’s transformation programme All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
NS&I’s positive news culture has meant it has not learned lessons, which has affected its ability to deliver the programme. NS&I told us that that it promotes a “can do” attitude and culture; while this has benefits in encouraging commitment to NS&I and to transformation, NS&I acknowledges that it has been over-confident about its ability to deliver 3 the Programme. The Government Internal Audit Agency’s December 2024 review of NS&I’s culture found that its leaders were not taking responsibility for taking action to address issues raised. NS&I says it understands that its transformation will require a change in mindset and accountability, but it was not able to tell us how it would do this. Instead, when asked about a “positive news culture” which can result in decisions not made and disagreements not resolved, NS&I’s leadership continued to emphasize positive scores from staff engagement surveys. As these surveys only capture employees’ views, it does not give it an external perspective. The external organisations that have reviewed the programme told the NAO that NS&I was often slow to act on advice, or did not act. recommendation NS&I should seek positive attestation from NS&I non-executive directors and from the Treasury, that: • NS&I has implemented recommendations from the culture review and other recent reviews; and that • NS&I’s leadership has demonstrably learned lessons as the Programme has progressed
From: Public Accounts Committee, 67th Report - NS&I’s transformation programme (HC 1237), 13 February 2026
Government response
The government responded to the whole report on 7 April 2026 (deadline 13 April 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees with the Committee's recommendation" on each of the recommendations in the report, and sets target implementation dates between June and Autumn 2026.
- On the integrated plan, the government agrees that NS&I should prepare a realistic plan. NS&I is developing costed options, which will form the basis of a revised Full Business Case in the second quarter of 2026-27, "subject to Treasury and Ministerial process timings".
- NS&I will write to the Committee "within six months" setting out the integrated plan, including timelines and a revised estimated cost, and will provide a written update on its risk management framework "by June 2026".
- On culture, a business-wide programme of cultural change activity will be developed, with an initial plan to go to the Board and the Treasury in early Summer 2026 for "rolling implementation over the coming 12-18 months".
- The Treasury says it will evaluate NS&I's agreed plan through a full Treasury Approval Panel process and will write to the Committee in the Autumn on lessons learned from its oversight.