The UK government has awarded a contract worth up to £456 million to KPMG and EY to train civil servants in skills including AI, marking the largest single deal for Big Four firms since records began in 2012. The agreement, reported by the Financial Times and set to run from 2026 to 2028, comes despite Labour's 2024 election pledge to cut consulting spending.
According to data from procurement tracker Tussell, the contract surpasses the previous record of £322 million, which PwC received from the Foreign Office in 2012. KPMG's share is capped at £137 million, while EY could earn a similar amount - equivalent to around 13% of its UK consulting revenue over the same period.
Spending pledge under pressure
The £456 million figure is a ceiling, not a guaranteed total, but the deal still signals a shift from the government's stated position. The Labour administration pledged to save more than £1.2 billion in consulting fees by 2026. Tussell figures show Big Four companies have already secured £1.25 billion in contracts this year, exceeding last year's total of £1.06 billion.
A Cabinet Office spokesperson defended the arrangement when contacted by the Financial Times, saying the government remains committed to halving consultancy spending, with £700 million in annual savings now expected by 2028/29. The spokesperson added that the contract covers training services rather than consultancy and will be phased out once the in-house training model is in place.
Building internal capability
Critics will see this as further reliance on private sector contractors to fill gaps at Whitehall. Supporters will point to the long-term goal of building internal capacity. The training is designed to equip officials with skills across several areas, with AI named as a key focus.
For civil servants, this contract signals that AI skills will become a formal part of professional development rather than an optional extra. Those who build expertise now may find themselves better positioned as the government moves toward its in-house training model.
For those looking to get ahead of that shift, resources like AI for Government and the AI Learning Path for Policy Makers offer practical starting points aligned with the skills the government is prioritising.
Why this matters for government professionals
The contract makes clear that AI literacy is becoming a core competency across the civil service, not a niche technical skill. Officials who develop these capabilities in the next two years will be ahead of the curve when the in-house training model replaces external providers. The government's own targets suggest this training is a bridge to a permanent internal capability - and those who acquire the skills early will be best placed to deliver it.
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