Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Rejected
DVLA and MoJ demonstrate successful efficiency gains through digitisation and process redesign.
Conclusion
We heard evidence that some organisations have demonstrated how efficiencies can be achieved. The DVLA told us it has held its fees at 2014 levels by absorbing inflation through digitisation and process redesign, while improving customer service.52 It operates under a 5% efficiency target during current spending review period and reinvests savings to strengthen services that are underperforming such as drivers’ medical assessments. 46 C&AG’s Report, para 3.16 47 C&AG’s Report, para 3.14 48 C&AG’s Report, para 2.9 49 Q 17 50 Q 74 51 Letter from HM Treasury’s Permanent Secretary, 24 November 2025; and The Government Efficiency Framework - GOV.UK, updated 24 November 2025 52 Q 14 15 The MoJ described its reform programme to modernise courts and tribunals by moving away from paper-based applications to digital services, to support progress towards full cost-recovery and improved user experience.53
Government Response Summary
The government disagrees with the recommendation but states that the Government Efficiency Framework (GEF) already provides guidance for efficiency and that departments are incentivized to drive efficiencies in their fee-funded services, which will count towards their technical efficiency targets.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. 5.2 The government agrees that incentives on departments for cost reduction and productivity improvements should apply as equally to all services regardless of the funding mechanism. 5.3 The Government Efficiency Framework (GEF) already provides extensive guidance for efficiency in the fee-setting framework and endorses public sector organisations to use the framework as a guiding set of principles on how they progress and track efficiencies. Where the costs of delivering a fee or charge service have been reduced through a technical efficiency and the fees/charges have been reduced (in line with 6.2.2. of Managing Public Money) and this can be clearly evidenced; this can be included as a monetisable non cashable efficiency. 5.4 Departments are therefore incentivised to drive efficiencies in their fee-funded services as this will count towards their bespoke technical efficiency targets agreed at the 2025 Spending Review. All government departments identified at least 5% savings and efficiencies by 2028-29, delivering technical efficiencies of almost £14 billion a year by 2028-29, with funding repurposed towards core priorities. The government is committed to continuous improvement and will repeat the technical efficiencies process at the next Spending Review. 5.5 Treasury, Parliament and the public will be able to both track and hold public bodies to account on how they are achieving efficiency savings to both the taxpayer and the fee payer as part of their overall publicly reported steps towards meeting their efficiency targets. This will also be assessed as part of departments’ annual financial performance evaluations.