A new report has been released revealing that outdated technology costs the UK public sector £45 billion each year in lost productivity
The findings showed how reliance on archaic systems slows down essential services, affecting citizens and workers.
Lost productivity due to outdated technology
This lost productivity could cover the costs of funding every primary school in the UK for an entire year.
The report, set to be published on Tuesday, highlights a key issue with a large portion of public services still using old technology that affects efficiency and productivity.
Nearly half of public services cannot be accessed online, causing citizens to spend excessive time in person or on hold to get the support they need. From registering a death to running small businesses, outdated processes hold the UK back and add needless limitations to day-to-day tasks.
The limitations of healthcare services
One example referred to in the report is the healthcare system.
Vulnerable patients with long-term health conditions often have to contact over 40 different public services to receive the care they need.
These services rarely share information, leading to frustrating delays and repeat questions. The result is a fragmented, inefficient experience for citizens, making essential support harder to access when it’s needed most.
The impact of using outdated systems
Even government departments that rely on digital systems have fallen behind.
Over one in four digital systems used by central government are outdated, with some departments facing failure rates as high as 70%.
These outdated systems are costly to maintain and often require external contractors at inflated rates. The report estimates that this overreliance on consultants is using up to £14.5 billion annually, three times the cost of having permanent staff manage the technology.
Security and reliability are also at risk. The report reveals that NHS England faced 123 critical outages last year, leading to missed appointments and delays in patient care. As more systems fail, these vulnerabilities expose the public sector to cyber threats, putting crucial services in jeopardy.
In response to these challenges, the government is moving forward with an ambitious plan to overhaul public sector technology.
The aim is to reduce reliance on outdated systems, integrate new AI tools, and streamline services for both public sector employees and citizens.
Using AI for a better, more efficient future
The reforms are part of the government’s Plan for Change, which includes using digital technologies to boost productivity, enhance the public experience, and save taxpayers billions.
A key part of the solution is the introduction of new AI-driven tools designed to modernise infrastructure and energy systems.
For example, the government has developed a new AI tool called Connect, which aims to speed up the connection of clean energy projects, such as wind and solar farms, to the national grid. This tool will help reduce delays, improve energy security, and lower household energy bills.
Another AI tool, Scout, will be deployed to oversee major infrastructure projects. By automatically analysing thousands of documents and reports, Scout will help officials detect potential problems early, keeping projects on track and ensuring they are completed on time and within budget.
These initiatives are part of a wider push to boost efficiency across the public sector, helping to deliver on the government’s goals of economic growth, improved public services, and cost savings for taxpayers.
With the government acknowledging that the current state of technology is not fit for purpose, these new reforms represent a bold step toward modernising the way the UK delivers essential public services.
The £45 billion in annual savings is a significant opportunity, and the government is determined to ensure it’s not wasted. By making smarter use of technology, AI, and data, the hope is to transform the public sector into a more efficient, accessible, and cost-effective service.
