Unlocking Savings: How the Public Sector Loses £45 Billion Each Year to Outdated Technology

Report Reveals That Outdated Tech Costs UK Public Sector £45 Billion Annually

The latest report shows that the UK public sector loses a staggering £45 billion each year because of outdated technology. This dependency on old systems hampers essential services and impacts both citizens and workers.

Impact of Old Technology on Productivity

This loss in productivity could fund every primary school in the UK for a whole year.

The report, to be released soon, highlights a major issue: a large number of public services are still using old technology, which affects their efficiency greatly.

Almost half of public services are not accessible online. As a result, citizens often spend too much time waiting on the phone or visiting in person to get assistance. Whether it’s registering a death or managing a small business, these outdated processes create unnecessary barriers for people.

Healthcare Challenges Due to Old Systems

The healthcare system is a significant example of this issue.

Patients with long-term conditions often have to contact over 40 different public services to get the care they need, which is frustrating.

These services rarely share information, leading to delays and repeated questions. This creates a disjointed experience, making it hard for citizens to access the help they need.

Consequences of Using Outdated Systems

Even digital systems in government are falling short.

More than a quarter of these systems are outdated, and some departments report failure rates as high as 70%.

Maintaining these old systems is costly and often requires expensive outside contractors. The report suggests that this reliance on consultants may cost as much as £14.5 billion a year—three times what it would cost to have permanent staff handle the tech.

There are also security risks. The report notes that NHS England experienced 123 major outages last year, which caused appointment delays and missed patient care opportunities. As more systems fail, the public sector becomes more vulnerable to cyber threats, compromising essential services.

In response, the government is pushing for a major update to public sector technology.

This plan aims to lessen dependence on outdated systems, adopt new AI tools, and make services easier for both public workers and citizens.

Leveraging AI for Improved Efficiency

These reforms are part of the government’s broader strategy to enhance productivity, improve public services, and save taxpayer money.

A key focus is on using new AI tools to modernize infrastructure and energy systems.

One such tool is Connect, designed to hasten the integration of clean energy projects, like wind and solar farms, into the national grid. This could minimize delays, secure energy supply, and help reduce household energy costs.

Another AI tool, Scout, will be used to oversee significant infrastructure projects. It will analyze thousands of documents automatically, helping officials spot potential issues early. This ensures projects stay on track and within budget.

These initiatives aim to increase efficiency in the public sector, aligning with the government’s goals for economic growth, enhanced services, and saving taxpayer money.

With a clear acknowledgment that current technology isn’t sufficient, these reforms signify an important step toward modernizing the UK’s public services. The £45 billion in expected savings presents a valuable opportunity, and the government is committed to using technology smarter to make public services more efficient and accessible.