Transparency data

Service Modernisation Programme Accounting Officer Assessment (November 2025)

Updated 10 February 2026

Applies to England, Scotland and Wales

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’s Major Projects Portfolio.

This Accounting Officer Assessment considers the Service Modernisation Programme (SMP), which the Department for Work and Pensions (DWP) (the Department) launched in April 2022.

Context

The programme aims to deliver more flexible, joined-up services underpinned by shared data and architecture, improving scalability, consistency, and workforce flexibility.

Since the last Accounting Officer Assessment in August 2024, SMP has revised the scope of the programme and secured additional funding of £124 million through the multi-year spending review to deliver additional net benefits of £492 million. This resulted in a partial update to the Programme Business Case (PBC) in 2025 to support funding through to June 2026.

Key changes are increased investment in the Business Delivery Model and Customer Account, new investment in Child Maintenance Policy Reform and Bereavement Support, as well as a streamlined Programme Management Office to enhance effectiveness within the programme. These changes have now been reflected in the partial programme business case refresh and is the subject of this Assessment update.

The Programme will update this assessment later following a further update to the PBC.

The programme now expects to deliver a net return of £1,000 million (undiscounted) from 2025 to 2032–2033 an increase of £368 million since the last published assessment.

Background

SMP began in 2022 to 2023 to improve a number of under-developed service lines, aiming to enhance services for 20 million DWP customers. It focuses on modernising key services and building shared enablers to support wider transformation. Many DWP processes remain paper-based, slow, and costly – SMP seeks to address these inefficiencies.

It has already delivered improvements by digitalising services such as State Pension, Child Maintenance and Attendance Allowance, reducing reliance on legacy systems, improving telephony, and streamlining delivery. Joining up services across shared customer groups has led to better experiences and lower administrative costs.

A new Business Delivery Model and single customer account will support joined-up services, reduce siloed working, and improve data use to tackle fraud and error. SMP will replace outdated systems and use digital and AI tools to boost productivity, freeing resources to support customers and improve outcomes.

SMP supports DWP’s strategic goals and has delivered £183 million in savings—14% above forecast—with £1,400 million expected by 2032 to 2033.

Assessment against Accounting Officer Standards

Regularity

The programme’s scope falls within existing common law powers, being included in the ambit of the Supply and Appropriation (Main Estimates) Act and will further enable the statutory obligation to deliver a quality and timely service. There are no changes to Regulations.

The department secured funding for modernisation through SR25, covering work until 2028 to 2029. On 1 October 2025, the Chief Secretary approved a partial refresh of the second PBC, to allow spending against the funding until June 2026.

The Regularity test is met.

Propriety

The programme enables the Department to provide joined up and simplified modern services to reduce reliance on outdated legacy systems. The Department is expected to provide an outstanding service which will deliver better outcomes for our customers, innovating to deliver the services expected from a modern civil service, whilst bearing in mind the need to deliver best value for money.

The programme has undergone robust governance and assurance both internally, and externally through HM Treasury.

There is full compliance with all Ministerial and Cabinet Office spending controls and approvals procedures.

Having reviewed this ongoing programme, DWP ministers have confirmed that they are content with its direction and progress.

The propriety test is met.

Value for Money

The programme demonstrates strong value for money, delivering a net cashflow of £1,000 million (undiscounted) and a Net Present Value (NPV) of £839 million, while delivering a Benefit Cost Ratio (BCR) of £2.38 savings for every £1 spent – an improvement to the August 2024 published Accounting Officer Assessment BCR which was £2.03. The programme starts to make a net return from 2027 to 2028, later than previously reported due to changes to scope which require time to complete investment and deliver savings.

The programme is making things more efficient by using automation, which means DWP will need fewer staff to operate these systems by 2032 to 2033. This will also save Official – DWP Use Only Official – DWP Use Only money on contracts and bring wider benefits to society and the economy. The programme’s analysis show that the plan is resilient as costs would need to increase by 138%, or benefits drop by 58%, before the project stops being worthwhile. The Programme have been cautious with their estimates, especially for new projects, and will review them again in the next scheduled PBC.

The Value for Money test is met.

Feasibility

The programme has a strong delivery track record and works closely with key partners including Departmental Change Portfolio Office, National Infrastructure and Service Transformation Authority (NISTA), Government Internal Audit Agency (GIAA) and the Minister for Transformation. It follows agile methodology, robust governance, and maintains active collaboration across Digital and Transformation teams. Planning is well-structured through integrated programme plans and roadmaps, with regular stakeholder engagement and assurance forums ensuring alignment and transparency. The programme has improved customer and colleague experience by digitalising services in State Pension, Child Maintenance, Attendance Allowance, and Maternity Allowance demonstrating its ability to deliver impactful, customer-focused digital transformation.

The programme faces inherent risks due to its strategic importance, wide scope, and significant impact on millions of customers and thousands of colleagues. These risks stem from rising demand for DWP services, constrained public spending, and the need to embed cultural and operational change across the organisation. While the programme has strong governance, planning, and operational readiness mechanisms in place, its high-risk classification reflects the complexity, scale, and political visibility of the transformation it supports.

The programme’s proven ability to adapt, align with evolving priorities, and deliver resilient, value-driven outcomes reinforces confidence in its role as a key enabler of DWP’s broader transformation agenda.

The Feasibility test is met.

Conclusion

In conclusion, I have prepared this summary to set out the key points which informed my decision.

My overall assessment is that the SMP continues to meet the requirements of the four accounting officer tests of regularity, propriety, value for money and feasibility.

If any of these factors change materially during the lifetime of this programme, I will prepare a revised summary, setting out my assessment of those factors.

This summary will be published on the government’s website GOV.UK. Copies will be deposited in the library of the House of Commons and sent to the Controller and Auditor General and Treasury Officer of Accounts.

Sir Peter Schofield
Permanent Secretary
Department for Work and Pensions