People running government departments need to improve their understanding of digital transformation to make efficiency savings, according to a new report by the National Office of Statistics (NAO).

The research suggests that billions of pounds in savings could be made if the government had a better knowledge of the process, warning that its efforts could “peter out” if departments don’t have the right digital expertise.

NAO, which is the UK’s independent public spending watchdog, said that previous attempts at digital transformation by the government focused on simpler online interactions and layered new changes on top of existing services using “old data and systems”. This approach has led to higher costs and inefficiencies, claims the organisation.

An earlier NAO report published in July 2021 concluded that there had been a quarter of a century of underperformance in digital transformation strategies by successive governments.

The new study says that the government is lacking employees with specialist skills, with just four per cent of civil servants classed as digital professionals, compared with an industry average of between eight and 12 per cent.

Only 60 per cent of civil servants believe they have intermediate, advanced or highly specialised skills and knowledge of how technology and data can transform government services.

Commenting on the news Gareth Davies, head of the NAO, said: “To maintain momentum, the government needs stronger digital expertise and sustained support from senior departmental leaders. Otherwise, these latest efforts will peter out and government will not achieve the savings and efficiencies that digital transformation has long promised.”

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