10 Government Spending Failures That Cost Billions: How They Compare to Raising Statutory Pay
Raising Statutory Maternity and Paternity Pay (SMP/SPP) to match the National Living Wage would cost the UK government an estimated £5.3 billion annually.
Ministers argue that such an investment is unaffordable, particularly during periods of economic restraint. However, in recent years, the government has spent far more on failed projects, mismanagement, and inefficiencies.
Here are ten examples of significant public spending failures - and how each compares to the cost of better supporting new parents.
1. HS2 Phase 2 Cancellation
Wasted Spend: £2.3 billion (cancelled Phase 2 leg)
Comparison: Nearly half of the annual cost to raise SMP/SPP Source: National Audit Office (2023)
2. Test and Trace System
Total Cost: £37 billion
Widely criticised for being ineffective and poorly managed
Comparison: Would fund raised SMP/SPP for 7 years Source: Public Accounts Committee (2021)
3. Personal Protective Equipment (PPE) Waste
Wasted PPE: £8.7 billion (due to non-usage or unusable stock)
Comparison: Could fund raised SMP/SPP for 1.6 years Source: Department of Health and Social Care (2022)
4. Ferry Contracts Without Ferries (Seaborne Freight)
Wasted Spend: £83 million
Awarded to a company with no ships during Brexit planning
Comparison: Would fund 1.5% of the annual SMP/SPP increase Source: National Audit Office (2019)
5. Track and Trace App Development
Wasted Spend: £11 million (initial version abandoned)
Comparison: Covers 0.2% of the annual SMP/SPP cost Source: BBC News (2020)
6. Crossrail Delays and Budget Overruns
Overrun Cost: £4 billion
Completed three years late at substantial additional cost
Comparison: Nearly a full year of raised SMP/SPP Source: National Audit Office (2020)
7. Failed IT Systems in the NHS (NPfIT)
Wasted Spend: £10 billion
Scrapped in 2011 after major failures in delivery
Comparison: Almost two years of raised SMP/SPP Source: National Audit Office (2013)
8. MOD Equipment Overspends and Write-Offs
Annual Overspend: £2 – £4 billion
Persistent procurement issues leading to write-offs
Comparison: Enough to fund almost a year of raised SMP/SPP Source: Public Accounts Committee (2023)
9. Garden Bridge Project
Wasted Spend: £43 million
Scrapped before construction began
Comparison: Covers 0.8% of the SMP/SPP uplift Source: Greater London Authority (2018)
10. Brexit No-Deal Preparations
Wasted Spend: £4 billion (on preparation and stockpiling)
Much of it unused due to actual deal
Comparison: Nearly a full year of raised SMP/SPP Source: National Audit Office (2020)
Final Thoughts
The UK government has spent over £75 billion on mismanaged or failed projects in recent years - enough to fund an increase in SMP/SPP for more than 14 years.
In comparison, £5.3 billion annually to support new parents is a modest, targeted investment with the potential to reduce poverty, support child development, and boost workforce participation.
As families continue to struggle on less than half the National Living Wage during parental leave, the question remains: Can the government truly justify saying this cost is unaffordable?
Sources:
National Audit Office Reports (2013–2023)
Public Accounts Committee Reports (2021–2023)
Department of Health and Social Care (2022)
BBC News (2020)
Greater London Authority (2018)