The Government Digital Service is expected to save £3.5bn over the course of the next parliament in return for the £450m budget handed to it in the recent spending review.
The £450m, which is separate from the overall budget of £1.8bn for the government digital technology announced by George Osborne, will be spent on the common technology services (CTS), government as a platform (Gaap) and Gov.uk Verify programmes.
GDS aims to deliver £1.3bn in savings from its GaaP programme and also plans to continue developing its identity verification scheme, Verify, which is expected to contribute savings of £1.1bn.
Verify aims to be the standard way for people accessing government services to prove they are who they say they are when completing transactions online.
Cabinet office minister, Matt Hancock, said the increased budget will help "transform the relationship between the citizen and the state".
The announcement of the GDS budget came as one of the most surprising in Osborne's autumn statement as rumours prior to the spending review suggested GDS would see significant cuts.
This is the first time the GDS has been given a multi-year settlement rather than a yearly budget which underlines the government's commitment to digital transformation.
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