Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Seek positive attestation on NS&I implementing culture review recommendations and leadership learning lessons.
Recommendation
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
Government Response Summary
The government agrees and commits to presenting an initial plan for business-wide cultural change, addressing review findings, to the Board/Treasury in early Summer 2026 for implementation over 12-18 months. It also notes ongoing governance revisions to incorporate feedback and challenge.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. of business-wide cultural change activity to respond to the findings of the culture review and other sources of colleague / supplier / stakeholder feedback. An initial plan will be presented to the Board / the Treasury in early Summer 2026 for rolling implementation over the coming 12-18 months. The Programme has increased its capacity and capability, including its leadership, notably through the introduction of a Programme Director and Systems Integration Partner who have demonstrated their ability and willingness to challenge NS&I and its ability to learn the lessons from its mistakes, as well as encouraging a culture of transparency and challenge from staff, stakeholders and suppliers. The Programme is revising its governance, incorporating requirements and recommendations from non-executive directors and the Treasury’s advisor (David Goldstone) as well as introducing a "Quarterly Value Cadence" which will require specific, documented approvals for deliveries as they proceed through each of the design, development and deployment phases. The replanning options have included numerous collaborative workshops with suppliers and stakeholders to ensure that all views are captured and considered when developing a more credible, deliverable programme plan.