UK government vows to reclaim services from outsourcing giants
The UK government is establishing a new unit within the Office for the Prime Minister and Cabinet to coordinate the insourcing of critical public services from outsourcing firms. This initiative aims to restore direct operational accountability and maximize value for money, particularly in response to recent service failures. The move follows significant criticism of outsourcing contracts, highlighted by the problematic transition of the Civil Service Pension Scheme to Capita.
- ▪The new government unit will coordinate departmental insourcing activity and identify opportunities to reduce reliance on external consultants.
- ▪The initiative is supported by a Public Interest Test that requires departments to evaluate service quality and public value alongside short-term price for contracts over £1 million.
- ▪Capita's administration of the Civil Service Pension Scheme has faced criticism for technical glitches and access issues, strengthening the case for insourcing.
- ▪The Cabinet Office's building management services, including cleaning and security, are an early candidate for insourcing when contracts expire in 2028.
- ▪Minister Nick Thomas-Symonds acknowledged that terminating the Capita pension contract immediately would cause severe payroll disruption, delaying any potential insourcing until the contract term ends.
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| Publication time | Mon, 28 Sep 2026 13:55:15 +0200 |
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(function() { let windowUrl = window.location.href; windowUrl = windowUrl.substring(windowUrl.indexOf('?') + 1); let messageElement = document.querySelector('.shareableMessage'); if (windowUrl && windowUrl.includes('code') && windowUrl.includes('expires')) { messageElement.style.display = 'block'; } })(); public sector UK government vows to reclaim services from outsourcing giants Whitehall unit will examine critical contracts after Capita pensions fiasco strengthens case for bringing work in-house Lindsay Clark Lindsay Clark BUSINESS SOFTWARE AND DATABASE REPORTER Published mon 28 Sep 2026 // 12:55 UTC READ MORE India’s outsourced software industry grows 9.5 percent to reach $239 billion 4 days ago UK funds flying broadband stations with power beamed from below 12 days ago UK's Digital…
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