DHSC reduces annual spend on data infrastructure by £12.6m

The Department of Health and Social Care (DHSC) has reduced its annual spending on data infrastructure by £12.6 million since 2023/24, according to figures seen by Digital Health News.

A response to a Freedom of Information (FOI) request, sent by the think tank Parliament Street, show that the total budget for data spending between July 2025 and June 2026 is £25.1m for staff, technology implementation, and data management.

Data spending for the same period in 2024-25 was £29.1m and for 2023-2024 was £37.7m – a total reduction of £12.6m.

Patrick Sullivan, founder and chief executive of Parliament Street, said: “Data underpins any successful technology and without that, how can we expect our critical healthcare services to function optimally?

“The Department for Health and Social Care rolling back investment in data staff undermines tech innovation and progress, highlighting a worrying trend that needs to be stopped in its tracks.

“At a time where healthcare systems are under immense pressure, prioritising investment in data systems and staff is more vital than ever.

“At a time when national healthcare systems rely increasingly on modern technology and data-driven outcomes, decisions made today on investment will directly impact patient outcomes tomorrow.”

The FOI also confirmed that the DHSC currently employs 133 staff members with the word ‘data’ in their job title, who are paid a total salary of £6.9m per annum.

Commenting on the figures, Stuart Harvey, chief executive of data technology firm Datactics, said: “As AI tools become increasingly embedded into front-line services within the government, the need for high-quality and well-governed data has never been more urgent.

“You can’t build trustworthy and accurate AI without clean, complete and well-understood data underneath it.

“AI has incredible potential, but the real work happens long before the algorithm begins. It’s about managing data standards, access and governance, and if those foundations aren’t solid, the AI will fail.

“We must remember, AI is only as good as the data that feeds it and cutting corners on data quality or infrastructure means accepting higher risks tomorrow.

“Real innovation comes from getting the basics right first.”

The findings come as the NHS prepares to roll out an AI early warning system across hospitals through the UK in November 2025 to monitor real-time hospital data to flag unusual spikes to trigger urgent inspections.

Meanwhile, results of a survey by the National Audit Office, published in March 2024, found that 70% of government bodies were piloting or planning to use AI use cases.

Richard Bovey, chief of data at AND Digital said: “As AI becomes more embedded within public services, the need for strong data foundations has never been greater and cutting data infrastructure funding at a time of growing reliance on AI sends a mixed message.

“To realise the full potential of AI in healthcare and beyond, the government must prioritise in-house data capability, data quality, and robust governance, these are the true enablers of safe, ethical, and high-impact innovation.”

Digital Health News contacted DHSC for comment.