Select committee: Public Accounts Committee
Recommendation 3
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)
It has taken NS&I far too long to develop a risk management framework, which has left the taxpayer exposed to unacceptable risks. NS&I launched multiple procurements and planned to deliver four transitions in parallel with no understanding of the risks this was exposing the organisation and its customers to. The programme was rated high- risk by external reviews on several occasions, but NS&I has not shown it can manage the risks effectively. In 2025, NS&I implemented a new Risk Management Framework, but it is not yet fully embedded. There are still many risks for the Programme to manage, for example the replacement of core banking engine is extremely high risk, but the main work has yet to start. NS&I is bringing in skills through its new System Integrator (CapGemini), but it is not yet clear that NS&I is listening to what it has to say about the realism of the timetable and the delivery risks. Programme governance has been strengthened, with the Treasury instigating the main changes by appointing new non-executive directors to NS&I, establishing a new committee to scrutinise the programme and by appointing David Goldstone in an advisory capacity. recommendation a. NS&I should ask Mr Goldstone to review how the Programme is applying the new risk management framework, and identify what additional support is needed. 4 b. By June 2026, NS&I should write to the Committee setting out the progress implementing its risk management framework, and how NS&I will strengthen and fully embed the framework in its operations.
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.