Last edited 10 Nov 2020

Efficiency and Reform Group ERG

The Efficiency and Reform Group (ERG) was created in May 2010. It is part of the Cabinet Office and works in partnership with HM Treasury to deliver savings and reforms, to transform the way public services are delivered, and to support growth in line with the 2010 Spending Review.

The Efficiency and Reform Group is responsible for:

Delivering savings by exploiting the government’s combed buying power.
Assuring the delivery of government’s most significant projects.
Transforming public services by making them 'digital by default' and focusing on the needs of users.
Allowing a wider range of UK businesses to bid for government contracts.
Driving an evidence based approach to efficiency programmes.

ERG reports to the Minister for the Cabinet Office (Rt Hon Francis Maude MP). It is led by Chief Operating Officer (Stephen Kelly) and a senior management team.

When it was created, it absorbed the Office of Government Commerce (OGC), an office of HM Treasury which produced guidance about best practice in procurement and project management. See OGC for more information.

On 31 March 2011, ERG established the Major Projects Authority to '...bring about the successful delivery of major projects across central government by working with departments to ensure the fitness and quality of major projects throughout their life'. See Major Projects Authority for more information.

In April 2013, the National Audit Office (NAO) reported that ‘ERG has contributed significantly to departmental savings in 2011-12 but substantial and sustainable new savings streams will be needed to achieve £20bn of savings in 2014-15.’ (Ref. NAO The Efficiency and Reform Group.)