NS&I Transformation

Rating: Delivery confidence is assessed as RED because the programme cannot currently be delivered to agreed cost, schedule and scope without significant re‑planning and re‑baselining. There is no agreed, affordable end‑to‑end delivery plan, with delivery outcomes dependent on the resolution of active options analysis and future funding decisions. Confidence is further constrained by Spending Review affordability pressures, ongoing uncertainty around scope and sequencing, and the absence of a finalised, quantified benefits baseline. Until these issues are resolved and a preferred option is approved, delivery commitments cannot be made with confidence. Senior‑level intervention and agreement with HM Treasury are required to restore a credible baseline and improve delivery confidence.

Schedule: Exempt under Section 43 - Commercial interests

Cost: Exempt under Section 43 - Commercial interests

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

Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 remained at RED. This is primarily due to the following factors‚ Solution gaps and other serious risks to the Business Transformation Programme have necessitated a recovery plan. There is a risk of slippage on major roadmap deliverables caused by scope and timeline mismatches between supplier contracts and the programme roadmap, alongside solution and design gaps necessitating re-work. In January 2025 the IPA conducted an Assurance of Action Plan that rated the programme’s recovery plan as AMBER, giving confidence that once the recovery plan is executed, the programme will return to Amber status.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 increased from 31/03/2026 to 31/03/2028. This is primarily due to the following factors‚ Commercial issues persisted with delays to contract signature for NS&I’s core banking engine and with the delivery of NS&I’s new Business-to-Business capability. Their combined impact was to extend the outsourcing agreement with the existing supplier by 2 years to March 28. Programme recovery was also a factor, with the core element being a significant shift in delivery approach for the remaining milestones.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) increased to 2955. This is primarily due to the following factors‚ The updated Full Business Case (FBC) was approved by Ministers and HM Treasury in Dec. 2024. This showed a cost increase over the previous 2023 Business Case in part due to inflation effects on rephased costs, increased solution complexity and increased incumbent and head office costs, as the transitional period for the programme was extended. Additional risk-based costs were also included to reflect solution uncertainty during the recovery period.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 23/24-Q4 remained at Red. This is primarily due to the following factors. Since the last annual update, the Programme has awarded further procurement packages and signed contracts for B2B Transition, Contact Centre and Operations (awarded to Sopra Steria Ltd.) and Digital Experience and Enablement (awarded to IBM). Delivery teams have mobilised to collaboratively develop detailed solution designs and plans for transitioning these services from NS&I's incumbent, Atos to NS&I's new strategic delivery partners. However, finalising end to end solution designs, agreeing detailed dependencies and finalising commercial agreements has been challenging and continues to prove so. Delays achieving alignment in these areas and in contract signature for NS&Is new Banking Engine have impacted transition delivery milestones. Atos' market position has deteriorated and continues to be monitored carefully. A recovery route on an Integrated Delivery approach and plan continues to be the Programme's focus, working collaboratively with all strategic partners and with technical, legal and commercial experts.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 increased from 2025-07-31 to 2026-03-31. This is primarily due to the following factors. The Programme continues to work in collaboration with all NS&I's strategic partners and experts engaged in the programme to develop the technical and commercial solutions required to achieve transition of services and programme completion by current programme end-date. However, initial contract delivery milestones have not all been met owing to the complex challenges experienced in finalising detailed solution designs, plans and commercials, and the Programme does not yet have an integrated plan with dependencies agreed by all partners that demonstrates its ability to deliver by this end date. The concerted effort to achieve this is the programme's priority, in which key resources continue to be engaged.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 increased from 1158m. to 1864m. This is primarily due to the following factors. NS&I received approval for the Rainbow Programme Full Business Case (FBC) in September 2023. This follows approval of the Outline Business Case in March 2021, and approval of the Strategic Outline Business Case in June 2020. The baseline costs in the GMPP quarterly submission reflect the financial analysis in the FBC which covers the period from 2021-22 through to 2030-31. Costs incurred prior to April 2021 were part of a discovery exercise and were not specifically attributed to this project. The costs shown here cover activities including running the procurements, building the solutions, transforming the business, and the future ongoing running costs.

Source: IPA Annual Report 2023-24 (data)