Performance Improvement in the Public Sector
PwC partnered with the Cabinet Office to design and pilot the Government Grants Managed Service (GGMS), a centralised, digital-first model that standardises grant administration, embeds proportionate assurance and reduces duplication across departments. The pilot demonstrated transformational results – cutting administration costs by around 40%, reducing fraud and error by 25%, and proving how a streamlined national service can strengthen stewardship of public funds while delivering better value for taxpayers.
The UK government administers thousands of grants each year – many of them small, simple schemes designed to support communities, charities and local initiatives. Yet these non‑complex grants often required the same mobilisation, due‑diligence and assurance effort as much larger programmes. Departments were spending disproportionate time and money on administration, while inconsistent processes created avoidable risk and slowed delivery for applicants. The Cabinet Office recognised that a more efficient, consistent and transparent approach was needed to protect public funds and improve the experience for citizens and civil servants alike.
PwC was engaged to help design and pilot a new Government Grants Managed Service (GGMS): a centralised, standardised service for administering non‑complex grants. The aim was to reduce administrative overheads, strengthen fraud and assurance controls, and improve data quality, while ensuring that policy decisions remained firmly with individual departments. The Cabinet Office also sought to test whether a shared service could ultimately become self‑funding, delivering long‑term value for money.
Working closely with the Government Grants Management Function and seven departments, PwC co‑designed the operating model, procedures and performance framework for the new service. The team focused on creating a streamlined, end‑to‑end process that removed duplication, reduced reworking and provided a consistent experience for applicants. Alongside this, PwC supported the development of a government‑owned digital platform to automate routine tasks, standardise workflows and capture high‑quality, comparable data across schemes.
The pilot demonstrated the model’s feasibility and quickly built confidence across departments. Six grant schemes were administered in the initial phase, enabling the Cabinet Office to test the service across different types of funding. Following this success, the pilot was extended for a further year, during which the GGMS administered more than 20 schemes worth over £100m and supported 11 departments and arm’s‑length bodies. This provided robust evidence of scalability, and demonstrated that the service could operate effectively as business‑as‑usual.
The performance improvements were significant. Administration costs for non‑complex grants fell by an average of c.40% – far exceeding the original 20% target. Standardised processes and clearer handovers reduced delays and made delivery more predictable for both departments and applicants. Fraud and error controls were strengthened, with consistent due‑diligence and quality‑assurance checks reducing risk by 25% compared with departmental baselines. The service also proved highly scalable, responding to unexpected surges in demand – including a 150% spike in late‑stage applications for one scheme – without delaying payments to recipients.
For applicants, the experience is now clearer and faster, with more consistent communication and fewer requests for clarification. Civil servants benefit from reduced administrative burden and better tools, enabling them to focus on policy, oversight and outcomes rather than manual processing. The improved data quality also supports better decision‑making and greater transparency across government.
The Cabinet Office estimates that, if adopted across just 5% of general grants, the GGMS could generate up to £142m in annual savings – money that can be redirected to frontline services and public priorities. The success of the pilot has led to a major procurement to establish the service long term, reflecting strong confidence in its ability to deliver sustainable value for taxpayers.
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