£3.4bn saved in government cost-cutting programme

More than £3.4 billion was saved in 2020/21 through successful efforts to improve efficiency across Whitehall, putting more money back into vital public services.

The Cabinet Office says that significant savings were made through cutting losses from fraud and debt (£1.8 billion), improved buying decisions (£1.4 billion) and more effective use of digital services (£142 million).

The Cabinet Office’s Debt Market Integrator (DMI) has streamlined departments’ access to debt collection services, reclaiming £373 million of public funds which would not otherwise have been possible.

The Central Digital and Data Office, which advises departments on best practice for using digital and data services, helped cut £137 million of digital spend while specialist buying teams drove more than £1 billion of savings by ensuring departments pooled resources to buy goods and services.

To cut costs further, departments are now required to set targets which measure their ability to achieve the highest standard of public service while reducing spend.

Minister for Government Efficiency Jacob Rees-Mogg said: “Taxpayers have the right to expect every penny of their money to be justified before it’s spent. These figures show quality need not be sacrificed to achieve better value for money, and I want to accelerate the progress made. We are ensuring the Civil Service is delivering the government’s top priorities while ensuring the best possible value for taxpayers.”