Despite the UK government’s annual expenditure of over £26 billion ($32.33 billion) on digital technology, a significant portion of its systems remain outdated. According to the latest “State of Digital Government” review, around 28% of central government technology is still classified as “legacy.” This figure highlights a growing concern, especially as other sectors continue their digital modernization efforts.
The Proportion of Legacy Systems in Government
Legacy Technology: A Growing Issue
The review found that 28% of central government IT infrastructure falls under the category of legacy systems, an increase from 26% in 2023. Legacy systems are defined as outdated technologies that are no longer supported by suppliers, are difficult or expensive to update, and present an increased risk to system stability. The data further shows that legacy systems are disproportionately prevalent in certain sectors, including the NHS and police forces, where the share of outdated technology can range from 10% to as high as 70%.
Key Impact on Public Services
Legacy technology is not just a technical concern but a practical one that affects everyday services. The reliance on these outdated systems has led to service interruptions, which in turn, cause significant disruptions in critical services. For example, in May 2024, a failure at HMRC affected half a million people’s child benefit payments. Similarly, NHS outages were linked to patient harm, demonstrating how legacy tech can jeopardize both operational efficiency and public well-being.
Financial Implications of Legacy IT in Government
High Costs of Maintenance vs. Modernization
A staggering portion of government technology budgets—up to 75-80%—is spent on maintaining existing systems rather than modernizing them. This practice leads to rising operational costs, with some organizations spending three to four times as much on maintaining legacy systems as they would on modern alternatives. Despite the massive financial outlay, the government’s investment in digital technology remains significantly lower than its international counterparts, sitting 30% below benchmark levels.
A Strain on IT Budgets
Departments such as the Department for Work and Pensions and NHS England, which continue to rely heavily on legacy technology, find themselves trapped in a cycle where most funds are allocated for system upkeep rather than forward-thinking modernization projects. This not only impacts the sustainability of government IT but also hinders long-term digital transformation.
Cloud Adoption: Progress, But Inconsistencies Remain
Cloud Migration and Partial Refactoring
Approximately 46% of central government IT estates have been migrated to the cloud. However, this shift is often incomplete, as many migrations do not involve full refactoring of legacy applications. The Home Office, for instance, has shifted 63% of its estate to the cloud, but other areas like local government remain largely on-premise, indicating a lack of uniformity across departments.
Cloud Migration Challenges
The review underscores the gap between cloud adoption and full system modernization, pointing out that many cloud-based projects still run on outdated infrastructures. This partial migration creates inefficiencies and fails to leverage the full potential of cloud technologies, delaying broader digital transformation efforts.
Why Modernization Is Critical: Risks and Benefits
The Risk of Falling Behind
Without a coordinated and aggressive effort to modernize, the UK’s government could face growing challenges. Critical outages, like the ones experienced in 2024, are symptomatic of deeper systemic issues with outdated technology. The risk is clear: failure to transform could lead to more frequent disruptions in essential services and higher long-term operational costs.
Long-Term Benefits of Technology Transformation
In contrast, investment in modern technology offers a substantial opportunity for cost savings, greater system reliability, and enhanced service delivery. A holistic digital transformation, including a shift to modern cloud-based systems, could reduce the complexity of the government’s IT landscape and unlock more scalable, resilient, and cost-efficient solutions.
A Call for Reform: The Need for Action
The report concludes that urgent reforms are needed. “Underinvestment in technology increases long-term costs,” and the current system of maintaining legacy technology is unsustainable. The UK government must overhaul its approach to digital transformation, ensuring that it can deliver on its promise of reliable, modern services for citizens.
Frequently Asked Questions
Q: What is considered “legacy technology” in government IT?
A: Legacy technology refers to systems that are outdated, no longer supported by their vendors, difficult to update, or pose a higher security risk due to their age. This includes systems that can no longer be maintained at an acceptable cost or performance level.
Q: Why is the UK government struggling with legacy IT systems?
A: The struggle stems from a combination of long-standing reliance on outdated technology, underinvestment in modernization efforts, and the complexities involved in migrating large, mission-critical systems to newer infrastructures.
Q: How does the use of legacy IT affect public services?
A: Legacy systems can cause frequent outages, system instability, and inefficiencies that disrupt critical services such as healthcare, tax, and public safety. These disruptions can also have serious financial and safety implications.
Q: How is cloud migration affecting UK government IT?
A: While 46% of government IT estates have moved to the cloud, many migrations are incomplete, with full system refactoring often missing. This results in less efficient cloud usage and slows down digital transformation.
Q: What is the financial impact of maintaining legacy IT in government?
A: The maintenance of legacy IT systems is expensive, with some departments spending up to four times more on upkeep than they would on modern systems. This drains resources and delays modernization initiatives.
