Source · Select Committees · Public Accounts Committee

58th Report - Government services: Identifying costs

Public Accounts Committee HC 1421 Published 12 December 2025

Report Status

Government responded

Conclusions & Recommendations

21 items (13 recs)

Source

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Government Response

AI assessment · 21 of 21 classified

Accepted 10

Accepted in Part 3

Acknowledged 5

Deferred 1

Not Addressed 2

Recommendations

3 results

3 Accepted in Part

Require DSIT to provide a baselined list of legacy systems and prioritise those for cost investigation.

Recommendation

Legacy IT systems are a significant contributory factor in the cost of government services and an impediment to being able to gather better data to bring about improvements. Departments face major challenges in collecting and analysing cost data due to … Read more Legacy IT systems are a significant contributory factor in the cost of government services and an impediment to being able to gather better data to bring about improvements. Departments face major challenges in collecting and analysing cost data due to legacy IT systems and siloed data structures. These outdated systems are a significant cost driver, requiring additional people and processes to work around system limitations, and hinder consistent data gathering. The Cabinet Office recognises the need for Permanent Secretaries to understand their legacy estate, while DSIT has baselined government legacy systems and reviewed departmental bids for funding in the 2025 Spending Review. However, quick wins often mask deeper issues like poor data quality and entrenched cultural barriers. The lack of common data standards across government complicates benchmarking and granular cost analysis. The Shared Services strategy offers potential for improved consistency in the future, but technical solutions alone are insufficient–cultural and process reforms will be constantly needed. There is no standard policy on time recording in the civil service, and despite ERP systems offering 4 this capability, its use remains optional. The desired levels of productivity improvements will not be achieved without effective use of time for every civil servant as would be the norm in the private sector. A shift in mindset is needed to better understand how time is spent and to make use of data for meaningful insights. recommendation a. DSIT should provide the Committee with a baselined list of legacy systems identified and the services they support alongside the Treasury Minute response to this report. b. In addition, DSIT should,within six months from the publication of this report, indicate which legacy systems should be targeted as a priority for further investigation into how far their limitations result in additional people and process costs in the operational business areas they support Show less

Government Response Summary

The government accepts part of the recommendation, agreeing to share available legacy system data with the Committee chair by March 2026 (privately). However, it rejects the second part, stating it will not prioritize identifying specific systems for further cost investigation within six months, as it needs to establish an improved baseline through its Legacy IT Action Plan, due later in 2026.

HM Treasury

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13 Accepted in Part

Legacy systems significantly increase costs and hinder data gathering across government.

Recommendation

Legacy systems are problematic for two main reasons. Firstly, they are a significant driver of cost, comprising around one-third of government’s technology estate but representing almost half of its costs.30 This may not include the excess costs that arise from … Read more

Government Response Summary

DSIT will share the available data with the chair of the Committee by March 2026, however, the department does not agree that this recommendation should be an immediate priority of the next 6 months.

HM Treasury

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18 Accepted in Part

Require Permanent Secretaries to appoint Single Service Owners with appropriate authority for every service.

Recommendation

The SSO role is not well understood across departments compared to other senior roles in departments. Both Cabinet Office and DSIT told us that more can and should be done to raise its profile and ensure that an SSO is … Read more

Government Response Summary

The Government Digital Service and the Cabinet Office will issue a letter encouraging Permanent Secretaries to complete an assessment of all SSO gaps within 6 months, and to appoint SSOs within 12 months, but the implementation target is March 2027, which is longer than the committee recommendation of six months.

HM Treasury

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