Select committee: Public Accounts Committee
Recommendation 5
58th Report - Government services: Identifying costs
Published 12 Dec 2025
Addressed to HM Treasury
Public Accounts Committee Government services: Identifying costs and generating income All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
There is a lack of urgency and clear leadership for resolving the legacy systems and poor data issues that inhibit the realisation of benefits through greater productivity and efficiency that departments will reap from new technology such as AI. Government transformation and efficiency efforts increasingly rely on artificial intelligence (AI), but legacy systems remain a major barrier, limiting access to the data needed for effective implementation. Despite this, departments are already experimenting with AI. Resource constraints at the centre of government mean less support is available compared to previous initiatives like the Top 75 programme. Although the digital pay framework has been revalorised, it still falls short of industry rates in London and the South East, affecting recruitment and retention. Addressing data and legacy issues requires sustained effort and resilience. AI offers potential to connect disparate data sources, but progress must be focused and purposeful–trying to solve everything at once risks losing momentum. Prioritisation and clear milestones are key to avoiding drift and ensuring that artificial intelligence delivers meaningful value. recommendation As part of its response to this report, DSIT should set out how it will take the lead on systemic data and systems improvement across government in order to exploit new technologies such as AI. At the same time, the department should set out what further steps it will take to ensure it can both secure and retain board level CDIOs and senior specialists of the right calibre given it cannot match industry pay rates in all areas of the country. 6 1 Accountability, support and guidance Introduction
From: Public Accounts Committee, 58th Report - Government services: Identifying costs (HC 1421), 12 December 2025
Government response
The government responded to the whole report on 1 April 2026 (deadline 12 February 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with the Committee's recommendations on cost ownership, costing guidance, single service owners and data leadership, and disagrees with one on prioritising legacy systems for further investigation.
- On accountability for costs, the government agrees and sets a target date of July 2026: the Treasury will issue an updated Dear Accounting Officer letter setting expectations that senior leaders identify, use and improve service-level cost information.
- On the six-month request to prioritise legacy systems for investigation, the government disagrees, stating it "does not agree that this recommendation should be an immediate priority of the next 6 months" given work already in progress.
- On the baselined list of legacy systems, the government agrees and will share "the available data" with the Committee chair by March 2026, but does not intend to make the list publicly available because of cyber-attack concerns.
- On Senior Service Owners, the government agrees with a target of March 2027: it will issue a letter encouraging Permanent Secretaries to assess gaps within 6 months and appoint SSOs within 12 months, with the timescale "accelerated if possible".