2 weeks ago
UK awards £456m civil service training to EY and KPMG
The British government has hired two big business companies, EY and KPMG, to help teach its own workers.
These companies are accountancy firms, and together they could be paid up to £456 million.
The government is doing this because it is building a new school for its civil servants, called the National School of Government.
That school is not ready yet, so for now the government is asking outside companies to do the training.
The training will last from September 2026 until March 2028.
KPMG could earn up to £319 million, and EY up to £137 million.
Some people think this is strange, because the government promised a few years ago to spend less money on outside consultants.
The government says this is only a temporary step and that it still plans to cut outside spending.
It also wants more than half of the training money to go to smaller businesses instead of big companies.
The UK Cabinet Office has awarded EY and KPMG contracts worth up to £456 million to train civil servants.
KPMG could receive up to £319 million, while EY could receive up to £137 million.
The contracts cover September 2026 to March 2028 and are meant to fill a gap while the National School of Government is rebuilt.
Tussell says the deal is the largest single Cabinet Office contract awarded to a Big Four firm since its records began in 2012.
Big Four firms have secured £1.25 billion in government contracts so far in 2026, surpassing the £1.06 billion awarded in all of 2025.
- Who
- The UK Cabinet Office, the Labour government, and accountancy firms EY and KPMG.
- What
- A contract worth up to £456 million for EY and KPMG to provide training services to civil servants.
- Where
- The United Kingdom, with the contract managed by the Cabinet Office.
- When
- The training services run from September 2026 to March 2028, following Labour's 2024 pledge to halve consultancy spending.
- Why
- To provide civil service training while the government rebuilds its National School of Government and moves training in-house.
Government's view
Critics' concerns
Consultancy spending pledge
Government's view
The government says this is a temporary transition while it rebuilds the National School of Government and that it remains committed to halving external consultancy spending.
Critics' concerns
Paying up to £456 million to two Big Four firms appears to conflict with Labour's 2024 pledge to halve spending on external consultants.
Value for taxpayers
Government's view
The new in-house model will reduce reliance on external spending and provide better value for taxpayers, with more than half of training money going to smaller businesses.
Critics' concerns
The scale of the deal, the largest Cabinet Office Big Four contract on record, raises questions about whether the transition is cost-effective.
Key facts
- Total contract value
- Up to £456 million
- KPMG maximum value
- £319 million
- EY maximum value
- £137 million
- Contract period
- September 2026 to March 2028
- Awarding body
- UK Cabinet Office
- Big Four 2026 government contracts
- £1.25 billion so far in 2026
- Big Four 2025 government contracts
- £1.06 billion
- National School of Government
- Expected to take about three years to reach full capacity
Quotes
Cabinet Office spokesman
A spokesperson for the UK Cabinet Office
“The new in‑house model would reduce reliance on external spending and provide better value for taxpayers.”
easterneye.biz
Sources
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