NS&I’s £3bn Overhaul to Miss 2028 Deadline
The National Savings and Investments (NS&I) is grappling with significant challenges in its business transformation program. Recently, NS&I’s chief executive Dax Harkins disclosed to the Public Accounts Committee that the organization will miss its March 2028 completion deadline. The program, originally initiated in 2020, is already four years behind schedule.
Key Challenges and Financial Support
To address the ongoing issues, NS&I has secured an additional £109 million in funding from HM Treasury. This funding aims to facilitate the modernization efforts but does not guarantee a swift resolution to the program’s delays. In total, the projected cost of the transformation initiative has ballooned from an initial estimate of £1.7 billion to an alarming £3 billion.
NAO’s Concerns and Recommendations
The National Audit Office (NAO) raised concerns regarding NS&I’s lack of a coherent and integrated plan. They noted that the organization underestimated the complexities involved in digitally transforming its operations. Additionally, they cited poor procurement strategies and delays as significant factors hindering progress.
Future Plans and Option Analysis
Harkins indicated that NS&I is currently exploring options for a reset of its digital transformation program. This includes collaborating with systems integrator Capgemini to develop a comprehensive delivery plan. By the end of March, the team aims to finalize an options analysis, which will include a draft business case for the preferred approach.
- Funding: £40 million for resource spending and £69 million for capital spending from the Contingencies Fund.
- Projected program cost: Increased from £1.7 billion to £3 billion.
- Completion deadline: Originally set for March 2028, now deferred.
Options being considered include minimizing the need to link older legacy systems with newer services and the potential for reprioritizing certain tasks. Harkins assured that work is already underway to evaluate risks and benefits associated with these options.
Current Status and Next Steps
As part of the strategic adjustments, NS&I has extended its contract with Atos, which manages customer communications and payment processing, until March 2028 at an estimated cost of £530 million. However, the NS&I faces pressure to ensure that the new contracts are procured efficiently and that the program runs within budgetary confines.
The channelling of additional funds and a clear strategic reset may assist NS&I in overcoming its current obstacles. However, the deadline and financial implications remain challenging, with a need for continuous support and oversight from the Treasury.
