UK Government Faces £45 Billion Cost Due to Outdated Tech; Urgent Modernization Needed, Says Report

January 19, 2025
UK Government Faces £45 Billion Cost Due to Outdated Tech; Urgent Modernization Needed, Says Report
  • Technology Secretary Peter Kyle has criticized the previous government's management of technology, highlighting the urgent need for modernization to avoid escalating costs for taxpayers.

  • In some government departments, up to 70% of technology is outdated, resulting in high maintenance costs that further burden taxpayers.

  • To address these issues, two new AI tools, 'Connect' and 'Scout', will be introduced to expedite connections for renewable energy projects and streamline project management, respectively.

  • These upcoming reforms aim to improve public service productivity, enhance citizen access to government services, and drive economic growth, aligning with the Government's Plan for Change.

  • The outdated technology currently costs taxpayers £45 billion annually due to lost efficiency savings, underscoring the need for immediate action.

  • NHS England faced 123 critical service outages last year, often reverting to inefficient paper-based systems, which resulted in missed appointments.

  • A comprehensive report titled 'State of Digital Government' is set to be published on January 20, 2025, drawing insights from over 500 leaders across 120 organizations and data from more than 100 entities.

  • The report indicates that public services are missing out on £45 billion in potential productivity savings due to their reliance on outdated systems.

  • Nearly half of public services are not accessible online, forcing citizens to navigate in-person applications and endure long response times.

  • The legacy of the previous administration includes a heavy reliance on contractors, which has led to outdated digital systems, with over 25% classified as obsolete.

  • A significant number of outdated systems are classified as 'red-rated', posing reliability and security risks.

  • The government plans to enhance the Government Digital Service to identify vulnerabilities in public sector technology that hackers could exploit.

Summary based on 2 sources


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