Source · Select Committees · Public Accounts Committee
Recommendation 39
39
Accepted in Part
DHSC's future plans contradict reducing consultant reliance, projecting £842 million spend by 2031.
Conclusion
However, DHSC’s actual plans seem to contradict this, indicating an ongoing reliance on external delivery partners to provide professional and technical skills and for specific assignments. It estimates that it will spend £842 million on consultancy services between 2023–24 and 2030–31, which represents 75% of its total day-to-day expenditure for those years.85 Such a reliance in a long-term programme can be very expensive as well as risking a lack of continuity and loss of knowledge.86 DHSC said that many of the consultants would always be necessary but, having firmed up the scope of the programme, it was now starting to recruit towards the planned operating model.87 Transfers of capital funding
Government Response Summary
The government acknowledges the need for external expertise and the ongoing role of a programme delivery partner, but states it is actively recruiting for internal roles with a view that some external resources may eventually be replaced by directly employed staff as the programme matures, partially addressing the committee's concern about ongoing reliance.
Government Response
Accepted in Part
HM Government
Accepted in Part
7.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2024 7.2 The NHP is a highly complex infrastructure project that requires significant technical expertise. External professional and technical expertise is a regular part of large construction programmes, and the NHP’s approach is in line with other major government programmes at this stage. The NHP has a recruitment strategy that covers the full breath of its required resource over the duration of the programme lifecycle, and the procurement of a programme delivery partner. The department regularly engages with HM Treasury and Cabinet Office on this and will write to the Committee by March 2024 as requested. 7.3 There is a shortage of skilled specialists across the Civil Service which affects the delivery of many major government projects, and there have been difficulties in recruiting people to senior leadership positions in the NHP. The NHP is actively recruiting into key roles in the department and NHSE, including project and programme management, digital and workforce change, procurement and other commercial expertise. Resourcing is regularly monitored by the NHP People Committee to ensure that the NHP has the right level of resources to deliver the programme effectively. 7.4 The NHP also recognises that some roles are more appropriate to fill with specific external expertise, examples being architects and engineers. Specific external expertise will be procured through a programme delivery partner. NHSE launched the procurement for this delivery partner in November 2023. The government’s view is that a programme delivery partner approach is necessary to enable the NHP to secure the flexible capability it needs to meet emerging risks and challenges, but that as the programme matures, it may be possible for some of this resource to eventually be replaced by directly employed individuals.