Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Loan management system launched 15 months late with ongoing functionality concerns.
Conclusion
The Department planned to have the original data platform in place in March 2023. However, the loan management system only went live in June 2024, 15 months later than originally planned. The Department’s decision to increase the scope of PwC’s work to develop the system contributed to it taking longer to deliver.23 It launched the system in June 2024 on the basis that it had in place the key operational functionality needed. However, Arts 16 Letter from DCMS Permanent Secretary, 25 February 2025; C&AG’s Report, paras 10 and 2.7 17 Qq 59, 61–63; C&AG’s Report, paras 10 and 2.7 18 Q 62; C&AG’s Report, paras 10 and 2.7 19 Qq 56–58, 61, 64; C&AG’s Report, para 1.16; 20 Qq 53, 64, 69 21 Q 68 22 Qq 61, 72, 84; Letter from DCMS Permanent Secretary, 25 February 2025 23 Q 53; C&AG’s Report, paras 10 and 2.8 11 Council England was concerned that the system was not providing the full functionality needed, with loan agents having to maintain their own spreadsheets that the system was meant to replace.24 In response, the Department told us that it was sometimes the case that there was a learning and testing period when new systems are launched, and that there should not be the need now for the kind of duplication involved in maintaining separate spreadsheets.25
Government Response Summary
The full Loan Management System (LMS) Version 2 (V2) functionality was implemented in March 2025 for under £300,000 and the original PwC contract has been extended to preserve business continuity.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented: March 2025 2.2 The full Loan Management System (LMS) Version 2 (V2) functionality, as scoped by the department, was implemented in March 2025 for under £300,000 and in line with the committed plan. 2.3 The original PwC contract, which expired in March 2025, has been extended for a further year, as permitted through the original tender, to preserve business continuity and ensure appropriate support remains in place for LMS V2 functionality. The strategic review of the loan book (referenced in 1.5) will inform the requirement for a Managed Service Provider. If the role is to be retained, the Managed Service Provider contract will be re-tendered in line with appropriate government procurement guidelines and with an expectation that no further variations of the current PwC contract will be required.