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UK Treasury Delays Decision on Joining Workday-Based Matrix Cluster Until December
When the Treasury pledged £1.7 billion to a national finance and HR overhaul, it imagined a clean transition to a unified system. Instead, a series of Workday setbacks have pushed its own go‑ahead into December.
The Treasury’s delay follows problems with the cloud‑based Workday platform that the Matrix cluster—led by the Department for Science, Innovation and Technology (DSIT)—plans to adopt. The cluster, which already includes the Cabinet Office, the Department for Energy Security and Net Zero, Culture, Media and Sport, Business and Trade, the Attorney General’s Office, Education, Health and Social Care, and most recently the Treasury, faced a stumbling block in 2024 when Workday was awarded a £144.3 million contract for SaaS finance and HR software, and Cognizant received a matching £144.3 million contract for system integration.
Although the Treasury has committed £1.15 billion to the program since 2021, it has not yet signed off on moving from its custom Oracle Fusion system to Workday. A letter from Jerome Glass, director general for the Future Civil Service at the Cabinet Office, was sent to the Public Accounts Committee explaining the postponement. Glass said that Treasury accounting officers must be satisfied that the proposal meets the standards set out in the government’s Managing Public Money guide, including a clear demonstration of value for money. He added that the Treasury is working with the Matrix programme to build the evidence base needed for a decision.
Glass noted that the Treasury’s onboarding had always been planned on a longer timetable. Delays in the Matrix programme have pushed back the Treasury’s receipt of key documents and evidence, which in turn has delayed the formal Accounting Officer sign‑off. The Treasury expects to receive the majority of the documentation required to assess feasibility and cost by the end of summer 2026, and an evidence‑based decision by December.
The National Audit Office (NAO) has previously reported that the shared‑services programme will see its go‑live dates pushed from 2028 to 2029. The NAO also highlighted that the Treasury and the Department for Education have invested heavily in existing finance, HR and commercial systems built on modern ERP platforms that are highly configured to meet their specific needs. Joining the Matrix cluster would require the Treasury to converge on common data and processes, potentially losing some functionality and incurring additional costs.
The NAO’s sensitivity analysis showed that the programme’s expected benefits would fall from £185 million to £109 million if the Treasury and the Department for Education did not join. The Treasury disputed the calculations.
The Treasury has provided funding for the entire shared‑services programme for the spending review period up to and including the 2028‑29 financial year. The five clusters that make up the programme cover all Whitehall departments and arm’s‑length bodies, with contracts totaling around £1.7 billion, some extending beyond the spending review period.
The Cabinet Office’s shared‑services forecast estimates that benefits from the strategy will reach £4.37 billion over 15 years, comprising £1.4 billion in cashable benefits and £2.98 billion in non‑cashable benefits. If the forecasts hold, the programme would deliver significant savings for the taxpayer, but the Treasury’s willingness to join remains a key uncertainty.
At present, the Treasury’s formal decision is scheduled for December. No further information has been released about the Treasury’s internal assessment, the exact timing of the go‑live for the Matrix cluster, or any potential regulatory actions that may affect the rollout.
The Treasury’s decision will be closely watched, as it will determine whether the department can realise the projected savings and whether the shared‑services strategy can achieve its intended cost‑efficiency targets.
The Treasury’s delay follows problems with the cloud‑based Workday platform that the Matrix cluster—led by the Department for Science, Innovation and Technology (DSIT)—plans to adopt. The cluster, which already includes the Cabinet Office, the Department for Energy Security and Net Zero, Culture, Media and Sport, Business and Trade, the Attorney General’s Office, Education, Health and Social Care, and most recently the Treasury, faced a stumbling block in 2024 when Workday was awarded a £144.3 million contract for SaaS finance and HR software, and Cognizant received a matching £144.3 million contract for system integration.
Although the Treasury has committed £1.15 billion to the program since 2021, it has not yet signed off on moving from its custom Oracle Fusion system to Workday. A letter from Jerome Glass, director general for the Future Civil Service at the Cabinet Office, was sent to the Public Accounts Committee explaining the postponement. Glass said that Treasury accounting officers must be satisfied that the proposal meets the standards set out in the government’s Managing Public Money guide, including a clear demonstration of value for money. He added that the Treasury is working with the Matrix programme to build the evidence base needed for a decision.
Glass noted that the Treasury’s onboarding had always been planned on a longer timetable. Delays in the Matrix programme have pushed back the Treasury’s receipt of key documents and evidence, which in turn has delayed the formal Accounting Officer sign‑off. The Treasury expects to receive the majority of the documentation required to assess feasibility and cost by the end of summer 2026, and an evidence‑based decision by December.
The National Audit Office (NAO) has previously reported that the shared‑services programme will see its go‑live dates pushed from 2028 to 2029. The NAO also highlighted that the Treasury and the Department for Education have invested heavily in existing finance, HR and commercial systems built on modern ERP platforms that are highly configured to meet their specific needs. Joining the Matrix cluster would require the Treasury to converge on common data and processes, potentially losing some functionality and incurring additional costs.
The NAO’s sensitivity analysis showed that the programme’s expected benefits would fall from £185 million to £109 million if the Treasury and the Department for Education did not join. The Treasury disputed the calculations.
The Treasury has provided funding for the entire shared‑services programme for the spending review period up to and including the 2028‑29 financial year. The five clusters that make up the programme cover all Whitehall departments and arm’s‑length bodies, with contracts totaling around £1.7 billion, some extending beyond the spending review period.
The Cabinet Office’s shared‑services forecast estimates that benefits from the strategy will reach £4.37 billion over 15 years, comprising £1.4 billion in cashable benefits and £2.98 billion in non‑cashable benefits. If the forecasts hold, the programme would deliver significant savings for the taxpayer, but the Treasury’s willingness to join remains a key uncertainty.
At present, the Treasury’s formal decision is scheduled for December. No further information has been released about the Treasury’s internal assessment, the exact timing of the go‑live for the Matrix cluster, or any potential regulatory actions that may affect the rollout.
The Treasury’s decision will be closely watched, as it will determine whether the department can realise the projected savings and whether the shared‑services strategy can achieve its intended cost‑efficiency targets.
