Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Not Addressed
NS&I attempted an overly complex, risky programme with too many parallel transitions.
Conclusion
We asked NS&I why it had been trying to do such a complex Programme, splitting operations undertaken by a single supplier into a multi-supplier model, in such a risky way. The NAO report shows that NS&I original planned expected four transition stages to happen largely at the same time, and NS&I accepted that it was originally trying to do too much at once, and that it should have recognised this before 2024, taken a step back and re-evaluated, and made sure that it had a viable implementation plan. NS&I said it originally wanted to do things in a more sequential way, and suggested it had been forced to change approach when it had been unable to award a contract (for the second phase, customer experience) as planned.11 5 C&AG’s Report, para 13 6 Committee of Public Accounts, Government’s relationship with digital technology suppliers, Twenty-Seventh Report of Session 2024–25, HC 640, 6 June 2025, para 2; C&AG’s Report, Government’s approach to technology suppliers: addressing the challenges, Session 2024–25, HC 543, 16 January 2025, para 3 7 C&AG’s Report, para 10 8 Q 1 9 C&AG’s Report, para 10 10 Qq 5, 15 11 Q 11; C&AG’s Report, Figure 6 8
Government Response Summary
The government's response completely fails to address the committee's conclusion about NS&I's complex programme transition and the need for re-evaluation, instead discussing unrelated matters concerning Carer's Allowance overpayments and reassessments.
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. review and has appointed a Senior Responsible Owner to make sure it delivers on these. The department has already increased the weekly Carer’s Allowance (CA) earnings limit by a record amount; changed some of its guidance; and are working with users and carers’ organisations to make sure communications work for customers. Going forward, the government will be modernising the treatment of earnings in CA to help reduce the number of overpayments occurring in future. This is being explored through discovery work on the possibility of automating the calculation of earnings and potential solutions to reduce the impact of the current cliff edge, including exploring an earnings rule with a taper. The department will continue putting things right by reassessing affected cases, and potentially reducing, cancelling, or refunding debts for an estimated 26,000 carers. More detail on the reassessment exercise will be made public soon. In most cases, the department will contact people affected if it requires more information to conduct the reassessment. The department will write to both the Public Accounts and Work and Pensions Committees every six months with a progress update. This will enable the Committees to scrutinise progress. The department will also include information in its Annual Report and Accounts.