The Ministry of Housing, Communities and Local Government increased its spending on specialist temps by almost £1m last year, but still aims to scale back the need for external support
The delivery of important digital projects saw government’s housing department increase its spending on contingent workers by almost 13% in FY25 – but the organisation remains committed to decreasing its dependency on consultancies and external suppliers, according to ministers.
In the 12 months to the end of March 2025, the Ministry of Housing, Communities and Local Government spent £7.7m on short-term workers, compared with £6.8m in the prior year. This rise “reflects targeted use of specialist contractors to support priority programmes, particularly in digital, technical, and transformation services”, according to Samantha Dixon, the department’s minister for building safety, fire and democracy.
But she added that the rise in external spending FY25 is set against the backdrop of a broader programme through which “the department remains committed to reducing reliance on external suppliers and consultants, having already achieved a 50% reduction in consultancy use since 2023/24”.
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“As part of our ongoing invest-to-save initiative, we are actively replacing contractors and professional services with permanent civil servants,” Dixon said, in response to a written parliamentary question from Conservative MP Sir James Cleverly. “This approach has already delivered substantial savings and is expected to generate further annual efficiencies. By building in-house capability, the department is not only reducing costs but also enhancing the skills and sustainability of the civil service workforce, which in turn supports more effective and efficient delivery of our objectives.”
The most significant tech and transformation project currently being delivered by MHCLG is the £150m Digital Planning Programme. The scheme, which is due to conclude a seven-year delivery schedule in 2027, is aimed at delivering “a modern and efficient 21st-century planning system… [that] will shift a semi analogue system based on documents to one that is data-driven, standards-based and powered by modern, user-centred products and services”, according to government major projects data.
