It's often asked, both in the media and Parliament, how external consultants are used across government, with the big question being whether they’re worth the higher costs they’re typically associated with. The UK government spends over £1.3bn a year on consultants, but because of inconsistent data it’s not clear what that money achieves.
Our new report and good practice guide highlight both the value consultants can bring and the risks of over-reliance. As the chancellor pushes to halve consultancy spending by 2026, the question is not whether to use consultants, but how to use them wisely.
Consultants offer specialist skills and fresh perspectives that the civil service sometimes lacks, particularly in areas like digital transformation, project delivery, and scientific expertise. When deployed well, they help government deliver complex programmes at pace. In fact, 86% of officials we surveyed said consultants add value, with examples ranging from building safety regulation to major IT projects.
Despite a perception that consultants can be overly expensive or a waste of money, it is how they are used that is key – as our survey shows, they make a positive impact when used the right way. But we found that there are instances where this isn’t the case, which results in poor value for money for the taxpayer.
Crucially, our report finds that government does not have consistent enough data to properly monitor consultants in government. Without this data, government doesn’t have a clear picture on exactly how departments are using consultants or what they’re spending on them. Government then finds it difficult to thoroughly plan how they might better use the existing workforce or hire for permanent roles where consultants are being used repeatedly, and this ends up being much more expensive over time.
Our good practice guide lays out learning for using consultants:
Plan ahead. Departments should integrate consultancy needs into workforce plans, avoiding last-minute appointments that drive up costs.
Engage the market. Too often, departments rush procurement, limiting competition and innovation. Good practice examples—from HMRC’s supplier engagement conferences to DHSC’s requirement for robust business cases—show that early, open dialogue with suppliers pays off.
Work as one team. Consultants and civil servants increasingly operate in blended teams. Done well, this approach combines external expertise with internal knowledge. Done badly, it creates silos and inefficiencies. Clear roles, shared objectives, and effective contract management are essential.
Build knowledge transfer in. Consultancy should leave a legacy of skills, not just deliverables. Learning must be embedded throughout the engagement, not tacked on at the end. For example, Defra has incorporated evaluation and learning into its frameworks.
Scrutinise and learn. Departments should review engagements, capture lessons, and share them across government. Without this, we risk paying twice for the same advice.
The real prize is a civil service that uses consultants strategically, learns from every engagement, and builds its own capability for the future. If we get this right, we can deliver better value for money and better outcomes for the public.
Sian Jones is a director at the National Audit Office. Read the full NAO report on government use of consultants here. Read the Good Practice Guide on using consultants in government here