PAC Cites ‘Persistent Failures’ in Management of £5.2bn IT Projects

An Assembly Committee has delivered a stark warning about persistent systemic weaknesses in the management of major IT projects across the Northern Ireland Civil Service (NICS), which are placing public services and billions of pounds of public money at unnecessary risk.

In its report, Major IT Projects in Northern Ireland, published today, the Public Accounts Committee (PAC) highlights long-standing failures in strategic planning, continued reliance on outdated legacy systems and a lack of collective leadership and accountability across Executive departments.

Between April 2022 and March 2025, departments and their Arm’s Length Bodies (ALBs) managed 29 major IT projects with a combined whole-life cost of more than £5.2 billion.

The Committee warned that persistent weaknesses are driving delays, rising costs and avoidable contract extensions in these projects. Continued reliance on legacy IT systems remains a major concern, increasing risks to service delivery and limiting modernisation.

The report highlights the encompass programme, the largest digital transformation project in Northern Ireland’s health and social care system as a significant example. At a current estimated cost of £1.99 billion, the programme aims to deliver a single digital health and care record for every citizen. The Committee noted that digital transformation is central to the Executive’s Programme for Government 2024–2027 and that stronger leadership and oversight will be essential to deliver that ambition.

However, the Committee identified ongoing concerns about the completeness, accuracy and reliability of its data, which undermines confidence in its reported benefits. PAC has recommended that robust performance data on encompass is published within six months.

Concerns were also raised about the overall value delivered by other major projects, with the Committee stressing that significant investment must be matched by clear evidence of benefits and improved service outcomes.

Daniel McCrossan MLA, Chair of the Public Accounts Committee said: “It is deeply frustrating that across different inquiries, we are seeing the same weaknesses highlighted time and again. Persistent failures in planning, oversight and leadership continue to expose public services, and the public purse, to unnecessary risk and cost.  There has been a fragmented approach to managing major IT projects, with limited coordination and no clear, shared vision across departments. That must change.”

The Committee found that accountability arrangements remain unclear, with responsibilities dispersed across departments and insufficient mechanisms in place to ensure effective oversight. It also raised concerns about silo working and an apparent reluctance among senior leaders to collaborate, which is undermining the delivery of major programmes.

PAC has warned that these are not isolated issues, but systemic problems affecting the NICS as a whole. It also highlighted concerns about whether departments have the necessary capacity and capability to deliver complex digital transformation programmes.

Deputy Chair, Tom Buchanan MLA said: “We want to see the development of an overarching IT, digital and data strategy for the NICS within 12 months, setting out clear priorities and milestones for delivery. It should support a more coordinated and strategic approach to digital transformation, including the adoption of emerging technologies such as AI.”

The Committee has made 11 recommendations and has emphasised that it expects to see clear evidence of progress. The Committee’s report concludes that without decisive action, the current approach will continue to put at risk public services, delivery outcomes and significant levels of public investment.

Ends

For further information please contact Felicity Templeton, Assembly communications office on 07977 635930 / felicity.templeton@niassembly.gov.uk

Notes to editors

• PAC’s work on this area was prompted by a Northern Ireland Audit Office (NIAO) report on major IT projects in July 2025 which can be found here.
• In the course of its Inquiry, PAC heard evidence from the Department of Finance (DoF), written evidence from The Executive Office (TEO) and written updates from Departments on the case studies featured in the NIAO report on Major IT Projects. 
• The Public Accounts Committee (PAC) is a Standing Committee. It is PAC’s statutory function to consider the accounts, and reports on accounts, of the Comptroller and Auditor General (C&AG) (Northern Ireland Act 1998, Section 60(3)). PAC also considers value for money reports which follow an examination on the ‘economy, efficiency and effectiveness’, with which a public sector body has used its resources. These examinations take place under Article 8 of the Audit (Northern Ireland) Order 1987 (‘the 1987 Order’).  Further information on the Committee Membership, its work and remit can be found here