MATRIX CLUSTER TRANSFORMATION PROGRAMME

Rating: The Matrix Programme is rated Red, reflecting a number of material issues identified through a planned Stage Gate that impact delivery confidence. These include Stage Gate 1 Readiness issues, notably unmet End‑to‑End Cycle 1 Entry Criteria. Data protection and information assurance risks were also identified, with some data segments having been unintentionally visible and therefore formal entry of the test phase could not take place. This gave rise to the need to rebaseline delivery plans. The Matrix Programme Board met on 26 March to consider the case for re‑baselining the programme. Replanning is intended to establish a more realistic, credible, and achievable forward plan in response to ongoing delivery challenges. Current emerging analysis indicates a delay of 3-6 months, which would move the Phase 1a user go‑live to late 2026. Proposed mitigations centre on alongside structured scenario planning to assess a new plan. A defined set of actions is underway to support an informed decision on revised go‑live dates at the Programme Board in May. System issues have now been resolved and this May date will enable us to assess test progress too. The single biggest risk to this is Depts being unable to find functional SME capacity to undertake the high level of testing they have identified as being required, given their low risk appetite. Notwithstanding the above, there has been tangible progress. Data migration activity is focused on improving data quality ahead of the final migration cycle, thereby reducing risk to subsequent testing and assurance. Core design configuration is now largely complete, with remaining exceptions tightly governed. End‑to‑end testing capacity and execution have improved through a revised testing approach, prioritisation of payroll‑critical scenarios, and the introduction of additional centrally cleared testing support. Mitigations are also being applied across wider design, readiness, and change activity. An iterative delivery approach is enabling service design, change impact assessment, and training needs analysis to progress in line with incremental design maturity. A programme‑level Training Strategy has been agreed and baselined, with further refinement underway as training requirements are confirmed. In parallel, early engagement with UKSBS on the delivery of training for Phase 1a professional users is strengthening delivery resilience and continuity. There remains a significant dependency risk associated with alignment to Shared Services for Government (SSfG) initiatives. The Programme’s ability to deliver agreed time, cost, and quality outcomes is, in part, dependent on SSfG decisions and delivery that sit outside the Programme’s direct control. This continues to represent a material risk to delivery confidence and reinforces the importance of a realistic and evidence‑based rebaseline. There is a significant risk associated with the Pension provider's inability to confirm when end to end pension integration will be able to take place. There was positive progress in March, when Programme Business Case 3 (PBC3) received HM Treasury approval for 2026-27, subject to six conditions. This provides a confirmed funding baseline while work proceeds on the PBC3 addendum (PBC3a), which will seek approval for funding beyond 2027 following re‑baselining. Overall, the current period is focused on embedding mitigations, strengthening delivery assurance and controls, and agreeing a credible and achievable rebaseline that supports informed decision‑making on revised go‑live dates and improves confidence in the Programme’s delivery trajectory.

Schedule: Since the programme plan and associated critical path were baselined in October 2024 with Phase 1a Go Live scheduled for May 2026 and subsequent phased go lives planned ahead of the programme end date of 30 November 2026, the programme has experienced delays primarily driven by Stage Gate 1 Readiness issues, including delays in achieving End to End Cycle 1 entry criteria. In response, the Matrix Programme Board met on 26/3/26 to consider the case for re baselining the programme, including the development of a rectification plan and the consideration of several planning scenarios.

Cost: Compared to FY24/25 Q4, the project's agreed Whole Life Cost at FY25/26 Q4 has changed due to development of a new programme business case, PBC3. Whole life costs at PBC3 include Departmental baselines and Programme resource costs, transformation, and service integrator over a 15-year appraisal period.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: The Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 is AMBER. The programme’s overall progress and performance remained on track, with concerns being manageable well and delivery generally proceeding as planned. However, there had some delays, which including receiving and finalising volumetrics and benefits baselining data. There was a positive development with contracts secured for external support to assist with these assessments. The Change Impact Assessments (CIAs) were expected to inform the development of the Economic Model for Programme Business Case v3 (PBCv3). While the programme had sufficient information to begin PBCv3 discussions, lessons learned had to be applied to ensure future data commissions would be delivered on time. Alongside system configuration, the team mapped to where activities and tasks for new services would sit, enabling the completion of CIAs in time for PBCv3. Re-planning efforts had been undertaken to resolve conflicts and reduce risks related to decision-making and data returns. These risks did not threaten the go-live date, but required careful management to avoid placing pressure on the PBCv3 approval timeline in September 2025.

Schedule: The project's end-date at 24/25-Q4 is scheduled to be 30/11/2027. This is primarily due to the following factors‚ The programme plan and associated critical path were baselined in October 2024 with Phase 1a go-live planned for May 2026, with subsequent phased go-lives ahead of programme end date on 30/11/2027. Factors influencing this schedule include the successful selection of a technology solution and appointment of a technology partner, appointment of a service provider and service implementation and transformation partners. These have now been done and delivery risk focuses on closing out the design phase by end of July 2025, resolving conflicts between the shared services strategy and the interoperability strategy, managing the level of change departments are undertaking when stability is needed and any impacts of the future years SR settlement.

Cost: The project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) is 938. This is primarily due to the following factors‚ Whole life costs are unchanged over the period and encompass 15-year appraisal period. Whole life costs include Departmental baselines and Programme resource costs, transformation, and service integrator.

Source: NISTA Annual Report 2024-25 (data)

Rating: Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) - Commercial interests.

Schedule: Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) - Commercial interests.

Cost: Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests) - Commercial interests.

Source: IPA Annual Report 2023-24 (data)