Government claims Directgov move will cut costs

The prediction is made in a document, published by the Cabinet Office on 27 July 2010 , which explains the costs and benefits of changes to the machinery of government since the election. It says that the government moved Directgov because it should play a more effective role in supporting departments to move services online, and to support the transparency agenda, by integrating its work with digital teams in the Cabinet Office. The government believed that with Directgov "positioned at the centre" and the authority of the Cabinet Office behind it, savings from web rationalisation could be achieved more quickly. The document says that, to minimise the cost and disruption caused by the change, the transition of IT facilities will take place over several months. Money which Directgov pays to the Department for Work and Pensions for the lease of IT infrastructure, such as PCs and desktops, will be transferred to the Cabinet Office for the provision of equivalent equipment. The document also explains why it moved the Office of Government Commerce and its executive agency Buying Solutions inside the Cabinet Office's Efficiency and Reform Group (ERG). The government's reasons include the belief that common interests can be pursued by the combined organisation, such as IT procurement and contract renegotiations. Although the document admits there have been costs associated with OGC's move to ERG, including those for IT, it does not give any amounts other than £7,000 for accommodation costs. "There will inevitably be upfront transition costs associated with the changes, but these are small compared to the benefits that will be delivered by the changes," according to the document. "And, as previously announced, the Efficiency and Reform Group will have a greater role in providing corporate support to departments going through a machinery of government change and holding departments to account to help secure the intended benefits of the change."