Just 26 per cent of the total efficiency savings reported by central government departments fairly represent the actual efficiencies that are being delivered, according to a National Audit Office (NAO) report.
This amounts to 3.5 billion pounds of the government’s total 13.3 billion savings so far, the report found.
‘The efficiency programme – a second review of progress,’ which looked at 25 projects in total, used a ‘traffic light’ system to class efficiency gains reporting from departments, with ‘red’ to represent projects where “There may be efficiencies taking place, but the measures used either do not yet demonstrate efficiencies, or the reported gains may be substantially incorrect.”
The report also found 6.7 billion pounds, amounting to 51 per cent of total efficiency savings, represent efficiency but “carry some measurement issues and uncertainties” and 3.1 billion, or 23 per cent, “may represent efficiency, but the measures used either do not yet demonstrate it or the reported gains may be substantially incorrect.”
“Some projects relied on estimates rather than being evidence-based,” Guy Atkins, co-author, told E-Government Bulletin.
The NAO report highlighted the need for increased transparency when reporting efficiency gains, and recommends the use of internal audit functions or the Office of Government Commerce to better challenge departments on how they report and measure efficiency gains in future.
The report is to be reviewed by the Public Accounts Committee on 26 February when recommendations to be taken forward will be agreed upon.
