NS&I’s £3bn Overhaul Faces 2028 Deadline Delay
The National Savings and Investments (NS&I) is currently facing significant challenges in its extensive business transformation program. During a recent testimony before the Public Accounts Committee, chief executive Dax Harkins announced that the organization will miss its anticipated completion deadline of March 2028. This initiative, originally launched in 2020, is now four years behind schedule.
Funding and Financial Impact
To address ongoing issues, NS&I has secured an additional £109 million in funding from HM Treasury. This financial support aims to enhance modernization efforts but does not guarantee swift resolution to the program delays. The projected cost of the transformation has surged from an initial estimate of £1.7 billion to a staggering £3 billion.
Concerns from the National Audit Office
The National Audit Office (NAO) has expressed concerns about NS&I’s lack of a cohesive and integrated plan. They highlighted that the organization significantly underestimated the complexities associated with digital transformation. Additionally, poor procurement strategies and substantial delays have been noted as key factors impeding progress.
Future Plans and Strategic Options
Harkins revealed that NS&I is exploring options to reset its digital transformation program. The organization is collaborating with systems integrator Capgemini to develop a comprehensive delivery plan. By the end of March, the team aims to complete an options analysis, which will include a draft business case for the recommended approach.
- Current funding includes £40 million for resource spending and £69 million for capital expenses from the Contingencies Fund.
- Projected program cost: Increased from £1.7 billion to £3 billion.
- New completion deadline: Extended beyond March 2028.
Among the options being considered is reducing the dependency on older legacy systems, as well as the possibility of reprioritizing specific tasks. Harkins reassured stakeholders that an evaluation of risks and benefits related to these options is already in progress.
Current Status and Next Steps
In light of these strategic adjustments, NS&I has extended its contract with Atos, the firm managing customer communications and payment processes, until March 2028, at an estimated cost of £530 million. However, NS&I is under pressure to ensure efficient procurement of new contracts while adhering to budgetary constraints.
With the support of additional funds and a clear strategic reset, NS&I aims to navigate its current challenges. Nonetheless, the looming deadlines and financial implications remain complex, necessitating ongoing support and oversight from the Treasury.
