19 January 2010 | Jake Kanter


Faltering IT projects have cost the UK government £26 billion, according to an investigation by a national newspaper.


The Independent claimed today that government officials have been easily drawn into bold claims made by vendors because they lack understanding about the technology industry. Tony Collins, executive editor of Computer Weekly and expert on public sector IT failures, told the newspaper that "irrational exuberance" for technology programmes has led departments to pay out for failing schemes.

The paper added up cost overruns on a number of IT projects to reach the £26 billion total.

The NHS’s National Programme for IT (NPfIT) – a scheme to digitise patient health records – and the National Identity Scheme were among some of the projects criticised for their deficiencies.

It is thought the identity scheme is £2 billion over budget and its aims have been watered down because identity cards will no longer become compulsory for all UK citizens. Elsewhere there has been poor take-up of the NPfIT, which has been blighted by problems with suppliers and unreliable cost estimates. The Independent reported that just 160 health organisations of around 9,000 that could use the £12.7 billion system are doing so.

Other projects probed include the National Offender Management Information System and the Department for Transport’s shared services centre, which have suffered cost overruns as a result of poor management.

In the pre-budget report last year, chancellor Alistair Darling set out plans to scale back certain IT projects, such as the NPfIT. The Conservative party has also indicated it would scrap large parts of the scheme.