Changing how we fund digital work to focus on outcomes

The Government Digital Service (GDS) and HM Treasury (HMT) are reforming how digital and data work is funded and tracked by moving away from sporadic investment in large projects. A new, flexible model will support continuous improvement and give leaders better insights through near real-time financial and performance data.

Our goal

Government digital funding is incremental, agile and directly linked to performance and user outcomes. This means that you’ll see improved digital products and services, which are continuously being developed to provide a better experience for users.

What this means for you

This initiative applies to central government only.

• More user-centred services: funding streams will be linked to performance, ensuring that services are continuously designed and maintained around the public’s needs.

• Faster and more reliable delivery: moving past rigid, short-term project cycles will enable faster, continuous improvement and more stable, resilient public services.

• Better value for money: the focus on testing, iterating and scaling successful projects will support the more effective and strategic allocation of government resources.

• Long-term perspective: if you work in the public sector, you’ll find it easier than ever to secure investment for long-lived, expert teams focused on delivering long-term outcomes.

Our progress so far

March 2025: published a comprehensive review of digital spending processes

GDS and HMT have made a public commitment to change, taking the first step towards funding reform that will deliver better digital services and outcomes. The Performance Review of Digital Spend paper outlines the specific actions that GDS and HMT have committed to take, based on the key findings from an extensive review of government processes for funding, managing and tracking digital projects.

September 2025: launched the new funding models pilots

GDS and HMT started work on pilots with departments including the Department for Science, Innovation and Technology, NHS and HMRC to test 3 new funding models – staggered funding for innovative technologies, staggered funding for live services and outcome‑based portfolio funding. As these pilots show that more flexible funding can improve delivery and value for money, you’ll begin to see better digital services.

April 2026: delivered end-to-end assurance and approvals

Using the GDS owned ‘Get approval to spend’ service as the delivery platform, we’ve enabled improved management of digital, data, and technology initiatives, from their inception through to delivery. This incorporates the agile funding models in conjunction with, capturing transparent pipeline data, simplifying case management and using insights gathered from our performance framework to support decision making.

What we’re planning to do next

June 2026: deliver skills support package

GDS will create and provide tailored support for a range of different roles to improve their skills in funding, managing and tracking digital projects. This will help more teams across government to adopt the new funding models, make better use of existing approaches and prepare departments effectively for government-wide adoption in the next spending review.

December 2026: bring together evidence of the benefits delivered through early adoption  

GDS and HMT will draw together evidence from departments that have used the new funding models, demonstrating the practical benefits being delivered – both for the departments running digital services and for those overseeing digital investment at the centre of government. This will help build confidence in the new approach and show how funding reform is making digital projects faster to start, easier to sustain and better value for public money.  

March 2027: refine the funding models based on what we’ve learned  

GDS and HMT will use evidence gathered from departments adopting the new funding models to refine existing approaches and, where appropriate, develop new ones. This will help us keep improving how digital work is funded across government, supporting better services and better value for money for the public.  

October 2028​: HM Treasury will be able to access and track departments’ finance and performance data in near real-time for the first time

HM Treasury will look to identify key data sources that support critical decisions or better quality analysis and challenge. Alongside the reform of controls and accountability in government announced at the November 2025 budget, this will allow HM Treasury to focus on finance and performance data most relevant to strategic analysis and early intervention. Where appropriate data may be integrated on a real time or automated basis.

More information