To ask the Secretary of State for Energy Security and Net Zero, with reference to paragraph 2.97 of HM Treasury's publication entitled Spending Review 2025: Departmental Efficiency Plans published on 11 June 2025, what the evidential basis is that insourcing will drive down costs by 40 to 60 per cent.
Answered on
4 July 2025
Department for Energy Security and Net Zero (DESNZ) will reduce its reliance on external consultants and contractors by building internal capability in key corporate functions. DESNZ benchmarking and commercial frameworks show external consultants and contractors typically attract significantly higher day rates in comparison to permanent staff. With targeted investment in skills, smarter talent deployment, and improved retention, the department can realise associated efficiencies of 40–60% in specific functions.