Select committee: Public Accounts Committee

Recommendation 4

67th Report - NS&I’s transformation programme Published 13 Feb 2026 Addressed to HM Treasury
Recommendation (the committee's words)
NS&I has failed to support the Programme with the skills and expertise it needs to deliver successfully. As an organisation with most of its operations contracted out to Atos, it is not surprising that NS&I had limited experience of digital transformation when starting the Programme. NS&I told us it has found it difficult to recruit the additional skills and capability the Programme needs. Since 2024, NS&I has added capability at senior levels, for example, by appointing a new commercial director, but it still relies on consultants to fill skills gaps. NS&I has made very substantial (£43 million) use of consultants in the Programme, but was vague about how it holds consultants to account. NS&I said it has more staff now, but it still does not have a resource management strategy in place. NS&I will continue to rely on Atos, which suffered financial distress in 2024, until at least 2028. NS&I told us it now has a contract management framework to manage Atos and the contracts with new suppliers, but it will need to be much better at managing supplier contracts to maximise the benefits of transformation. recommendation Within six months, NS&I should write to the Committee setting out its resource management strategy, including use of consultants, and how it will ensure that it manages consultants effectively. NS&I should also set out more clearly how it will manage suppliers and contracts, to manage risks in moving to the multi-supplier model.

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.

Read the government's response ↗ Report an error