NHS digital body told to strengthen estates spending plans

Digital Health and Care Wales should set clearer financial plans and investment priorities for its estate, Audit Wales says in a report published on Friday. The review found that the NHS digital organisation manages its buildings well, with strong compliance and effective oversight. But it called for a fully costed plan, clearer targets and more formal monitoring of individual projects.

A small, leased office estate

DHCW managed five buildings in 2024-25. The audit concerns its small, office-based, non-clinical estate, rather than the condition of hospitals across Wales. The report is dated July 2026 and covers work undertaken from February to June. Audit Wales published it on 23 October. Its findings should not be read as a fresh inspection of every building this month.

Where spending oversight needs to improve

The body allocated £830,000 of discretionary capital funding to its estate in 2025-26, compared with £960,000 in 2024-25. The report says it remained within its capital resource limit, but most expenditure came towards the end of the financial year. Auditors found that decisions took compliance, infrastructure needs and affordability into account. However, the criteria used to rank schemes were not documented, and there was limited evidence of formal arrangements to monitor individual schemes, manage delays or move funding between them.

Good condition, with better use of information needed

The report says the estate is generally in good condition and has no backlog risks. DHCW has ended leases on two surplus properties and is using occupancy sensors to help plan its space. At Tŷ Glan-yr-Afon, average occupancy was around 41%, with the peak below 53%, reflecting hybrid working. Auditors said the organisation could make better use of its data to guide investment and improve planning. These occupancy readings are distinct from the national estate classification of space utilisation.

Six recommendations and DHCW’s response

The six recommendations cover the estates plan, risk management, capital investment priorities, project spending, user feedback and succession planning for the estates team. In the response included with the report, DHCW says it will update its estates plan with milestones, targets and financial links by the end of March 2027. It gives the end of November 2026 for investment prioritisation and individual scheme monitoring frameworks. Other response dates fall in September 2026. The report does not establish whether every planned action had been completed by its October publication date.