Every year, UK taxpayers contribute hundreds of billions of pounds to fund public services. Yet a significant portion of this money is squandered through mismanagement, poor procurement, and outright inefficiency. Identifying the top 5 ways the UK government wastes money is critical for understanding where reform is urgently needed — and how initiatives like UK DOGE can help redirect funds to where they’re most needed.
1. Overpriced and Mismanaged Public Contracts
The UK government has consistently faced criticism for its handling of major contracts. From defence systems to NHS IT rollouts, mismanagement and cost overruns are the norm rather than the exception.
One of the most infamous cases is the NHS National Programme for IT, which was scrapped after costing over £10 billion, delivering almost none of its promised functionality (National Audit Office). Similarly, Ministry of Defence contracts frequently exceed initial budgets — the National Audit Office revealed that £5 billion in cost overruns had occurred across major MoD projects as of 2022 (BBC).
How DOGE can help:
UK DOGE could enforce tighter procurement regulations, require competitive tendering, and monitor contract delivery milestones. Real-time audits and benchmarking tools could flag overspending before it spirals.
2. Whitehall Waste and Overstaffing
While frontline workers in health, education, and policing often face shortages, central government departments are bloated. According to the Institute for Government, the civil service has grown by over 90,000 staff since 2016 — up nearly 25% — but with limited productivity gains (IFG).
The Department for Education alone spent over £400 million on consultants and temporary staff in 2021, raising concerns about efficiency and value for money.
How DOGE can help:
DOGE would recommend staffing reviews, mandate value-for-money appraisals for all hires, and incentivise digital transformation to reduce reliance on administrative labour.
3. Fraud and Waste in Public Benefit Schemes
Billions of pounds are lost annually to fraud or misuse within welfare and business support programs. The Department for Work and Pensions (DWP) estimated £8.6 billion in overpayments for Universal Credit alone in 2022–23 (DWP Annual Report).
During the COVID-19 pandemic, HMRC admitted that up to £4.5 billion had been fraudulently claimed through the furlough and loan schemes (The Guardian).
How DOGE can help:
DOGE can deploy data analytics to identify anomalies, enforce fraud detection systems, and work with departments to implement early-warning systems. A robust counter-fraud strategy could save billions annually.
4. Unnecessary or Duplicative Infrastructure Projects
Large-scale projects frequently suffer from poor planning, lack of due diligence, and political interference. The recent cancellation of HS2’s northern leg, after billions were already spent, underscores how planning failures can waste vast sums of public money.
The Public Accounts Committee found that the Crossrail project exceeded its original budget by over £4 billion and was delayed by three years (UK Parliament).
How DOGE can help:
DOGE would evaluate project risk profiles, enforce stricter approval processes, and create a central register for project reviews. By catching problems early, billions can be saved over project lifecycles.
5. Poor Use of Government-Owned Property and Assets
Government properties — from unused office space to underutilised public land — represent massive inefficiencies. The UK government owns over £420 billion in property assets, but many remain vacant or under-maintained (ONS).
A 2022 review revealed that more than £2.5 billion in savings could be unlocked through better property management and digital workspace transformation (GOV.UK).
How DOGE can help:
DOGE can mandate asset audits, recommend sales of redundant properties, and promote hybrid working models to reduce estate costs.
How Much Could DOGE Save?
If DOGE reforms each of these five areas even modestly, projected savings could exceed £15–20 billion annually. Conservative estimates include:
£5 billion from procurement oversight
£2–3 billion through fraud prevention
£2 billion from estate rationalisation
£3–4 billion through staffing and consultancy reductions
£3–5 billion in infrastructure project cost savings
That’s the equivalent of nearly £600 per working household, funds which could be used to reduce council tax, ease public service pressure, or cut the deficit.
What Governments Can Do to Save Taxpayer Money
To tackle waste and restore fiscal credibility, governments must:
Mandate transparency in all contracts, hiring, and procurement decisions
Adopt digital tools for automation, fraud detection, and real-time reporting
Benchmark performance across councils and departments
Reward innovation and efficiency through shared-savings incentives
Introduce watchdog units like DOGE to independently track waste and report findings
Public support for reforms is strong — a 2023 poll by YouGov found 72% of UK adults support independent oversight of government spending (YouGov).
Final Thoughts
The Top 5 Ways the UK Government Wastes Money show just how far short the state is falling in protecting taxpayers’ funds. From mismanaged contracts to fraud and asset waste, the system is leaking money at every level.
The solution? Oversight, transparency, and reform. A dedicated watchdog like UK DOGE could provide the independent scrutiny, strategic direction, and data-driven tools to slash waste, save billions, and restore public trust.
It’s time for change. It’s time to fix the leak — and let taxpayers see real value for their money.