DWP agrees £870m voice and data deal with BT

The Department of Work and Pensions (DWP) is to spend £870m on voice and data networks over the next five years after consolidating the various historical deals it has with its supplier BT.

This deal is the result of "contract realignment" to simplify the web of different contracts inherited by the DWP when it was created out of the former Department of Social Security and Department for Education and Employment.

BT will provide a new more resilient network, and increased bandwidth on average fivefold over the life of the contract. The improved services will be introduced over two years to maintain business continuity, the DWP said.

The new network will offer greater flexibility in organising work, such as virtual call centres and more flexible working, it said.

The deal will play a "critical part" in helping the department reach its target of £1bn in efficiency savings, said Leigh Lewis, permanent secretary at the DWP.

He said in a statement: "This contract realignment is a vital part in the department's modernisation programme. It paves the way for the department to receive the most modern communications infrastructure in the country enabling us to meet increased demand on communications as we become a more customer focused organisation."

The DWP deals with more than 20 million customer accounts making 13 million payments every week.