UK freezes thousands of government credit cards to cut 'wasteful' spending

The UK government has ordered the freezing of thousands of government department credit cards to cut down on expenses.

In a press release on 18 March, the government said the move was made in an attempt to ensure that every pound of taxpayer money is targeted at delivering for the public.

Only a few cards, such as those of diplomatic staff working in unstable environments for operational purposes will be exempt from the mass freeze.

A big step

According to the press release, the Cabinet Office will instruct departments and their agencies to freeze almost all of the around 20,000 Government Procurement Cards in circulation this week.

Additionally, Civil Service cardholders will be forced to reapply and justify their need for the cards or their cards will be cancelled by the end of the month.

The government is targeting that the number of credit cards will be reduced by at least 50% by introducing a strict new application process.

Chancellor of the Duchy of Lancaster Pat Mcfadden said:

We must ensure taxpayers’ money is spent on improving the lives of working people. It’s not right that hundreds of millions of pounds are spent on government credit cards each year, without high levels of scrutiny or challenge. Only officials for whom it is absolutely essential should have a card.

Prime Minister’s intervention

The sweeping reforms come on the heels of the Prime Minister stating last week that the Government must go further and faster to reshape the state and make it work for working people.

It is part of a civil service wide efficiency drive to cut down on wasteful spending across government, which includes making it quicker and easier to remove poor performers from posts.

The Chancellor of the Duchy of Lancaster has also ordered a review of the cards, with disciplinary action and the revocation authorized where they identify examples of spending on cards found to be incompatible with guidance.