Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Acknowledged
Significant recruitment and retention challenges hinder government's adoption of AI and digital skills.
Conclusion
70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption.31 In January 2025, the government’s State of digital government review set out the digital and data skills challenge faced by government, reporting difficulties in recruitment (around 50% of roles advertised in civil service digital and data campaigns in 2024 were unfilled), pay levels that were uncompetitive with the private sector, such as a 35% pay gap between public and private sector technical architects (equivalent to £30,000 per year), and the need for more technical roles within the profession.32 DSIT told us that 5.4% of the civil service workforce is in the digital and data profession, which compares unfavourably to the private sector benchmark of 8–12%, depending on the industry. It also told us that the skills mix within the profession was imbalanced, and that it relies too much on outsourcing for the more technical roles.33 Commenting more broadly on the findings of the review, the DSIT said that “there are many challenges and they are not evenly distributed” across government.
Government Response Summary
The government acknowledges the digital skills gaps and is taking steps to implement reforms, including refining frameworks, developing talent pipelines, and encouraging skills exchange. More detail is promised in the forthcoming Digital and AI Roadmap.
Government Response
Acknowledged
HM Government
Acknowledged
3. PAC conclusion: There are persistent digital skills shortages in the public sector and DSIT’s plans to address the skills gap may not be enough. 3. PAC recommendation: DSIT and Cabinet Office should write to the committee alongside publication of the Digital and AI Roadmap to: • explain how the planned reforms are expected to resolve the skills gap and by when, including how they will encourage the flow of digital skills between the private and public sectors, ensure digital leaders are more influential in decision making and embed a digital–first ethos into the civil service. • explain how they will monitor and evaluate the reforms so they can take action swiftly if reforms are not successful, and • set out their plans for reporting progress publicly. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 3.2 DSIT acknowledges the ongoing digital skills gaps across the public sector and is taking active steps to implement reforms that address this challenge. 3.3 To strengthen leadership and invest in talent, the government is introducing a requirement for all executive committees to include digital leaders and for boards to appoint digital non-executive directors by 2026. The role of the Government Chief Digital Officer has also been elevated to increase strategic influence over key decisions. 3.4 Further action to attract, retain, and develop digital and data talent is being taken through the refinement of the Government Digital and Data Pay Framework and Capability Framework. 3.5 To support long-term workforce planning, talent pipelines are being developed and cross-sector skills exchange encouraged through initiatives such as TechTrack, the AI Accelerator, and the Digital Secondments Programme. 3.6 The impact of these initiatives will be monitored and evaluated through the Workforce Commission’s bi-annual reporting, the Senior Civil Service Benchmarking Tool, and ongoing workforce data collection. Transparency will be maintained through public reporting, including updates on digital leadership appointments, publication of Workforce Commission outputs (where appropriate), and the launch of major programmes such as TechTrack. 3.7 Further detail on these measures will be set out in the forthcoming Government Digital and AI Roadmap.