51茶馆

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects and then assess whether they measure up to the standards set out in Managing Public Money. From April 2017, the government has committed to making a summary of the key points from these assessments available to Parliament where it involves a project within the government鈥檚 Major Projects Portfolio. A delay to publishing a summary assessment following HM Treasury approval of the full business case occurred to allow for an external review of the Programme to take place.听

This Accounting Officer Assessment considers the Synergy Programme, which is a cross departmental initiative for which the DWP Permanent Secretary is the lead Accounting Officer.听

Background and Context聽

The Synergy Programme was set up to deliver the Government Shared Services Strategy to implement the next generation of shared services in 4 departments:

• The Department for Environment, Food and Rural Affairs

• The Department for Work and Pensions

• The Home Office

• The Ministry of Justice

The Home Office has already moved to an Enterprise Resource Planning Cloud solution. The other departments still use a Single Operating Platform Technology. All the departments currently use the same Business Process Services provider.听

The Programme鈥檚 aim is to improve the way HR, payroll, finance and procurement are done across the 4 departments and their arms-length bodies. It will simplify ways of working, join up functions, and free up time to deliver some of the UK鈥檚 most crucial public services. Departments will benefit from the resulting consistent approach that enables better data sharing, better decision-making and simpler processes.听聽

Following approval of the Outline Business Case (OBC) an Accounting Officer Assessment was published in April 2023. This Assessment provides an update following HM Treasury approval of the full business case in August 2024, subject to conditions relating to funding and further work required ahead of the second business case, and agreement to proceed to awarding the Enterprise Resource Planning and Systems Integrator (ERP/SI) contract. The 12-month procurement process delivered a positive outcome with costs reduced by 39% from the assumed position at OBC.听

In September 2024, the Programme published the Invitation to Tender for the Business Process Services contract. That procurement will conclude during 2025, and an updated full business case will be completed to proceed with contract award in early 2026. The Programme continues to plan and design the Future Shared Services Organisation, which will manage the overall solution and deliver the corporate shared services functions centrally on behalf of the 4 departments above once it is live. This will be hosted within DWP until the end of the Programme, at which point a decision will be taken on long-term hosting arrangements.听聽

The complexity in delivering business transformation across multiple departments to challenging timescales has caused early delays to the Programme. A critical milestone will be the agreement of a fully costed and deliverable integrated plan in Summer 2025 incorporating the release dates for departments to move over to Synergy services following work to rephase and replan.听聽

To lead the next phase of the Programme, a new SRO and Programme Director were appointed in early 2025.听聽

Assessment Against Accounting Officer Standards聽

搁别驳耻濒补谤颈迟测听

The Programme鈥檚 scope falls within existing common law powers. The procurement exercise has been conducted in accordance with government principles and commercial law.听聽

HM Treasury provided approval for the full business case in August 2024. Funding was agreed for 2025 to 2026 as part of Phase One of the Spending Review. Funding beyond 2025 to 2026 is subject to the Spending Review to be announced in June 2025.听聽

I am satisfied that this test is met, subject to continued funding of the Programme.听聽

笔谤辞辫谤颈别迟测听

The Programme supports Parliament鈥檚 expectation for departments to join up where there are benefits from doing so and is consistent with the government鈥檚 Shared Services Strategy.听聽

As is typical of programmes of this scale, there are risks being managed relating to value for money and feasibility referred to below.听聽

I am satisfied that the propriety test is met.听

Value for Money聽聽

The Programme continues to demonstrate a positive Net Present Value over a business case period reduced from 15 to 12 years.听聽

The economic case continues to show a positive return on investment with a cost-to-benefit ratio of 1.2, though reduced from 1.3 from the OBC. The Programme has undertaken a detailed review of investment costs, benefits and reflected the outcome from the procurement. Overall, investment costs have increased by approximately 30%, largely driven by increased resourcing needs across the Programme.听聽

Cashable benefits have increased by 10%, but overall benefits are reduced by 14%. Whilst this reflects a headline reduction, benefits are more robust than at OBC stage following detailed evaluation with departmental teams. The procurement exercise for the new ERP/SI contract has delivered a reduction from the assumed OBC cost, which has offset the increases to cost and reductions to benefits.听聽

The financial case now shows a net funding requirement of 拢50 million over the business case period. This funding requirement has reduced from 拢250 million at OBC, largely driven by the reduction in future contract costs. This means the payback is now 13 years compared to 22 years at OBC.听聽

The Programme value for money position is sensitive to delays, which lead to cost increases due to longer running of the Programme and reduced benefits as they are delayed within the business case period. When the next iteration of the business case is produced, costs will be updated to reflect the Business Process Services procurement outcome. The Programme will also undertake work to review benefits and update assumptions around costs of transition to new services, which remain estimates at this stage.听聽

I am satisfied that the value for money test is met at this stage.听

贵别补蝉颈产颈濒颈迟测听

The Programme is delivering complex business transformation across multiple government departments, and as with most major programmes, is carrying a number of delivery risks.听

Since achieving approval for its full business case 1 by HM Treasury in Summer 2024, risks relevant to the Programme were raised鈥痓y the previous Senior Responsible Owner. As a result, a remedial plan was developed in consultation with the National Infrastructure and Service Transformation Authority (formerly IPA), which included the appointment of a new Senior Responsible Owner and Programme Director, who are now in post. They are delivering a plan to resolve key delivery issues.听

The Programme has completed the procurement for the ERP/SI contract which outlined the delivery schedule into each individual department. The first phase is Common Design, which is the first key milestone to agree harmonisation of policy and processes across the departments. This was originally scheduled for February 2025 but will now be completed in October 2025. The Programme plan is being revised to reflect this change and agree revised Go Live dates for each department by the end of June 2025. There are key operational dependencies and obligations on Synergy Cluster departments to enable the timely delivery of the implementation plan in partnership with the suppliers, including alignment of the new Business Process Services supplier once contract is awarded in early 2026.听

Securing the required funding and resourcing for the Programme will be critical to ensure the capacity and capability exists to deliver, both within the Programme team and individual departments. The resources required to support delivery remain scarce in the marketplace, and the Programme will be delivered by a mix of internal and external expertise.听

To maintain service continuity and to support transitional arrangements to the new services, extensions to current contracts through to 2028 have been secured.听聽

To secure ongoing feasibility, a critical activity will be the agreement of a fully costed and deliverable integrated plan in Summer 2025 following work to re-phase and re-plan the release dates for departments to move over to Synergy services, following the extension of Common Design.听聽

Subject to the critical dependencies outlined above, I am satisfied that the feasibility test is met at this stage.

颁辞苍肠濒耻蝉颈辞苍听

In conclusion I have prepared this summary to set out the key points which informed my decision. My overall assessment is that the Synergy Programme satisfies the requirements of the 4 accounting officer tests of regularity, propriety, value for money and feasibility to proceed at this stage.听

If any of these factors change materially during the lifetime of this Programme, I undertake to prepare a revised summary, setting out my assessment of those factors.听

This summary will be published on the government鈥檚 website. Copies will be deposited in the library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.听

Peter Schofield聽

8 May 2025