UK public sector slows digital change but eyes NHS gains

The UK public sector will enter 2026 with a more cautious and incremental approach to digital transformation, as tighter budgets and operational pressures curb appetite for large-scale overhauls, according to Gary Day, Director of Public Sector at Apogee.

Day said public bodies would still pursue digital projects across health, central government, education and schools, but he expects a shift from hype towards pragmatic implementation and visible, short-term gains.

NHS shifts from paper

Day expects the NHS and wider healthcare services to make measurable progress towards paperless, digital-first workflows.

He said activity will build around the NHS 10 Year Plan and the expansion of community-based care. Clinicians will increase use of secure digital input through tablets and mobile devices. They will record information directly into electronic patient record systems from patients' homes or outpatient settings.

Day said digitised medical records will allow clinicians to access full patient histories instantly. He said this will affect workflow efficiency and the quality of care. Approval processes for treatment and consent, along with interactions with family members, will increasingly move to digital signatures rather than paper-based forms.

He said the shift places new demands on infrastructure. Health providers will rely on strengthened, dedicated networks. They will seek resilient connectivity and security across community locations where staff operate away from hospital sites.

Progress will remain uneven between regions. "While not fully optimised in every region yet, 2026 will be a year of tangible, visible progress," said Day, Director of Public Sector, Apogee.

Central government slows AI

Central government organisations are likely to advance artificial intelligence projects at a slower pace than political rhetoric suggests, Day said. The comments follow major funding allocations, including GBP £573 million earmarked for AI in Whitehall.

He said senior officials still view AI as a route towards redesigning end-to-end workflows. They seek major efficiency gains. In practice, Day expects departments to focus on careful, phased implementation that fits existing systems and skills.

He anticipates longer renewal cycles for procurement frameworks. Departments will give more time for newer technologies to settle, integrate and demonstrate value before further expansion. He said there is a growing recognition in government that advanced technologies such as AI frequently take longer than expected to generate measurable return on investment and social value.

Day said this will shape the tone of the next year. "As a result, 2026 will be defined more by foundational groundwork than by dramatic AI-driven transformation," said Day.

Universities under strain

Universities will continue to rely heavily on bring-your-own-device models for students and academic staff, according to Day. He said most learners and teaching staff now depend on personal laptops and devices for specialised applications and coursework.

Behind that front end, he expects greater pressure on university IT teams. Overseas student numbers remain below previous peaks in many institutions. Day said this keeps budgets tight and leaves less headroom for large digital transformation programmes, which many universities have paused or scaled back.

Further education colleges face similar pressures. Day said real-terms funding cuts restrict spending on core IT infrastructure. Colleges that once pursued large procurement rounds for full-scale upgrades will shift towards leasing-based arrangements or smaller, incremental refreshes.

Day warned that this split is likely to widen the divide between institutions. Universities and colleges with strong financial reserves will continue with more ambitious digital investment. Those without such reserves risk falling further behind, which raises questions over long-term equity in access to modern learning environments.

Digital divide in schools

Schools and academy trusts will continue to experiment with new edtech approaches as they update classroom teaching and administrative systems, Day said. Senior leaders increasingly link digital tools in lessons, libraries and at home with learning outcomes.

However, Day pointed to persistent structural barriers around device access for pupils from low-income households. He cited research indicating that 57% of low-income families struggle to access devices or reliable internet outside school hours. The same research found that 12% of children complete schoolwork on smartphones.

Government findings highlight limited opportunities for pupils to take devices home. The latest research shows that only 72% of secondary schools allow this. In primary schools just 15% of institutions permit pupils to take devices home.

Day said these constraints will continue to affect attainment. "This will continue to cause students in more deprived areas to fall behind next year without intervention," said Day.

Device lifecycles add further strain. Many schools cannot sustain five-year replacement cycles for laptops and tablets. Access to modern hardware remains uneven between pupils and between regions.

At the same time, the Department for Education has set digital standards that expect more frequent renewal and maintenance of hardware. Day said these standards make infrequent technology purchases less likely. Schools will need to balance compliance with those standards against financial limits.

Trusts with fewer under-performing schools or those in less deprived areas are better placed to invest under current funding models. Day expects this to widen the digital divide unless more creative procurement models gain broader adoption across the schools sector.