What the Shift Really Means for Public Sector Suppliers

What a Healthy Digital Ecosystem Looks Like and Why It Matters

How the UK Public Sector is Strategically Integrating AI and Automation Across Digital Services

Hanover’s View on Why SC and BPSS Vetting Pressures Are Increasing in 2026

Find out how anover can support your DDaT capability through the DOS7 Framework

Discover how SME ecosystems can deliver real value in UK government DDaT programmes, driving innovation, better delivery, and stronger social impact.

The future of the UK Healthcare depends not just on medical excellence, but on digital capability. As the health service embraces a more integrated, data-driven, and technology-enabled model of care, the ability to procure and deploy Digital, Data and Technology (DDaT) skills has become fundamental to achieving this vision. From digital patient records and AI diagnostics to cyber-secure systems and smart analytics, these capabilities are no longer peripheral—they are core to modern, sustainable healthcare. But building this capability at scale requires more than intent. It requires a strategic framework to identify, commission, and grow the right digital skills, especially through public sector procurement. That’s where the Digital Capability Framework for Healthcare 2 (DCFH2) plays a vital role. Why DDaT Skills Are Essential for NHS Transformation The NHS is undergoing a digital transformation aimed at improving care quality, increasing operational efficiency, and reducing health inequalities. Initiatives like "What Good Looks Like", NHS Long Term Workforce Plan, and Frontline Digitisation all rely on embedding DDaT capabilities across the system. Whether deploying EPRs (electronic patient records), modernising infrastructure, or enabling data-sharing across ICSs (Integrated Care Systems), the NHS needs access to: Digital strategists and transformation leads Data scientists, analysts, and governance experts Cloud engineers, cybersecurity professionals, and developers Service designers, agile delivery managers, and digital programme specialists The Role of DCFH2 in Supporting DDaT Procurement The DCFH2 was designed to ensure the UK health Sector have a shared language and structure for identifying digital requirements. Importantly, DCFH2 also supports commissioning and procurement functions in the public sector to: Define What Good Looks Like in DDaT Skills DCFH2 outlines key digital capability domains and levels—from foundational to specialist and strategic. This enables procurement teams to specify clearer requirements in tender documents and contracts, avoiding vague or outdated job descriptions. Inform Supplier Selection and Evaluation Using DCFH2, buyers can assess supplier capabilities against a recognised national framework, ensuring that procured resources meet the digital maturity needs of the NHS. Enable Consistency Across ICSs and Programmes By aligning contracts with DCFH2, ICSs, trusts, and digital leads ensure consistency in workforce expectations—critical for interoperability and scalability. Support Value-Based Procurement DCFH2 encourages a shift from transactional procurement to value-based commissioning of digital skills, aligning spending with long-term transformation outcomes.  The importance of DDaT Ecosystem Partners The NHS doesn’t just need new systems—it needs the skills to use them effectively. Procuring DDaT skills isn’t a side task; it’s a strategic priority. Forward-thinking DCFH2 suppliers have the opportunity to utilise eco-system partners to effectively deliver DDaT skills into outcomes. Working with specialist SMEs can strengthen their contract bids and accelerate outcome delivery. As a trusted resource and technology solutions partner focused on public sector digital transformation, Hanover brings deep expertise in sourcing high-calibre DDaT professionals who understand the complexities of healthcare environments. Our ability to quickly mobilise talent across roles such as data analysts, digital programme managers, UCD specialists, and agile delivery leads makes us a valuable ecosystem partner for suppliers aiming to meet the competency standards and responsiveness required under DCFH2-aligned contracts. By leveraging our network and sector-specific insight, suppliers can enhance their capability, reduce risk, and ensure consistent delivery of outcomes in line with digital transformation goals. Find out more about Hanover’s DDaT and Technology services

The Procurement Act 2023, from February 2025, introduced significant reforms aimed at enhancing public procurement processes in the UK. These changes present unique opportunities for Public Sector Prime Suppliers to collaborate with Small and Medium-sized Enterprises (SMEs), fostering a more dynamic and efficient supply chain. ​ Simplified Bidding Processes The Act introduces a 'competitive flexible' procedure, simplifying bidding and negotiation processes. This flexibility enables prime suppliers to engage SMEs more effectively, leveraging their specialized skills and innovative solutions to meet diverse public sector needs. ​ Open Commercial Frameworks By making commercial frameworks more accessible, the Act ensures that suppliers, including SMEs, are not excluded for extended periods. This openness allows prime suppliers to diversify their subcontractor base, enhancing competitiveness and resilience in project delivery. ​ Strengthened Payment Provisions The Act mandates 30-day payment terms throughout the supply chain, improving cash flow for SMEs. For prime suppliers, this ensures a stable and reliable network of subcontractors, reducing project delays and fostering stronger partnerships. ​ Enhanced Transparency with 'Find a Tender' The upgraded 'Find a Tender' or Central Digital Platform makes procurement opportunities more visible, making it easy to search at no cost and set up alerts for tenders of interest. This transparency facilitates prime suppliers in identifying and collaborating with capable SMEs, streamlining the procurement process and enhancing project outcomes. ​ Greater Oversight and Compliance The establishment of the Procurement Review Unit (PRU) provides oversight across all sectors, ensuring adherence to procurement standards. This oversight encourages fair competition and accountability, benefiting both prime suppliers and SMEs by promoting a level playing field. ​ Conclusion Embracing the reforms of the Procurement Act 2023 allows Public Sector Prime Suppliers to build robust ecosystems with SME suppliers. This collaboration not only enhances service delivery but also contributes to economic growth and innovation within the public sector.

In today's ever-evolving business landscape, understanding IR35, also known as the 'off-payroll working rules,' is crucial for both companies and contractors. This blog post will delve into the key facts, updates, and strategies related to IR35. What is IR35? IR35 was first introduced in 1999 as the 35th mandate of the year by the then Inland Revenue, now known as HMRC. The legislation was signed into law on April 6, 2000, and it applies to individuals who supply their services through an intermediary, typically a Limited Company. The primary aim of IR35 is to ensure that contractors working through their limited company, who would otherwise be considered employees if the limited company were not in place, pay employment taxes and National Insurance Contributions (NICs). This is commonly referred to as being "inside IR35." History and Background Initially, contractors were responsible for determining their IR35 status. However, with the implementation of new rules in April 2017, public sector organizations became responsible for determining the IR35 status of their contractors. This shift aimed to increase compliance and reduce tax avoidance. In April 2021, the private sector reform adjusted the responsibilities so that medium and large end clients took on the legal responsibility of determining their contractors' IR35 status. When Does IR35 Apply? IR35 applies when a contractor operates through a UK-limited company, regardless of the work location. It affects contractors engaging via their limited company with public sector clients, such as local authorities, universities, and national service organizations. And currently for medium or large private sector clients, the client must meet two of the following criteria: Have an annual turnover of at least £10.2 million Have assets of at least £5.1 million Employ at least 50 staff Where the IR35 Rules Differ The IR35 reforms that came into place in April 2021 do not apply if a private sector client is considered a small company, as they fall under the small company exemption. As of April 6, 2025, the thresholds for determining a company's size for IR35 purposes have increased. This means that more medium-sized companies will fall under the small company exemption. To fall under the small company exemption a client must meet two of the following criteria: Have an annual turnover of not more than £15m (increased from £10.2m) Have assets of not more than £7.5m (increased from £5.1m) Employ no more than 50 employees If a contractor is working for a client based entirely overseas, and the client has no presence in the UK, the IR35 reforms do not apply. In both instances, the contractor is responsible for determining their own IR35 status and paying the appropriate taxes. When IR35 was introduced into the public sector, HMRC's guidance stated that, where end clients were engaging in fully contracted-out services via a third party, the end client would not need to determine the IR35 status of workers supplied by the outsourced services provider. The service provider would need to determine the status of its own contractors. Inside vs. Outside IR35 Understanding the difference between working inside and outside IR35 is essential for contractors. Outside IR35, contractors can work as self-employed and will be paid gross. Inside IR35, contractors engage via limited companies, are employed for tax purposes only, and have PAYE and National Insurance Contributions taken from their gross pay, resulting in a net salary. Some clients opt to engage contractors through an Umbrella Company to mitigate risks, as the off-payroll working rules do not apply in such cases. The Umbrella Company employs the Contractor directly, so the off-payroll working rules do not apply as the contractor is on payroll. Determination Factors Several factors can determine a contractor's IR35 status: Supervision, Direction, and Control : Can the contractor decide when, where, and how the work is completed? Substitution : Does the contractor have the option to send someone else to deliver the work if they are unavailable? The client would need to consider if they would allow the contractor to send a substitute since real-world scenarios will be considered over and above what is stated in the contract. Mutuality of Obligation : If there is no work available, is the client obliged to find some, and is the Contractor obliged to complete the work? Financial Risk : What financial risks is the contractor undertaking to deliver the project or promote their business activities? For example: Is the contractor expected to fix any mistakes they have made at their own time and expense? Does the Contractor pay for business insurances to protect them and their business activity? Part and Parcel : Will the contractor be embedded in company life? Will they have access to staff facilities, staff social events, or receive staff benefits? Responsibilities Public sector and medium and large-sized private sector clients must decide the IR35 status of an engagement and share the status determination statement (SDS) with all parties in the supply chain. All clients must take ‘reasonable care’ when determining IR35 status. HMRC defines reasonable care as acting “in a way that would be expected of a prudent and reasonable person in the client’s position.” Clients must provide a “client-led status disagreement process,” as either the recruiter or the contractor may dispute the IR35 determination. Conclusion Understanding IR35 and its implications is essential for both contractors and companies. By staying informed about the key facts, updates, and strategies, you can navigate the complexities of IR35 and ensure compliance with the regulations. About Hanover Hanover is a hybrid IT services and staffing company helping the UK Public Sector digitise and improve public services. We operate alongside some of the worlds top Systems Integrators as an SME Ecosystem partner. Find out more about our services

What the Shift Really Means for Public Sector Suppliers

What a Healthy Digital Ecosystem Looks Like and Why It Matters

How the UK Public Sector is Strategically Integrating AI and Automation Across Digital Services

Hanover’s View on Why SC and BPSS Vetting Pressures Are Increasing in 2026

Find out how anover can support your DDaT capability through the DOS7 Framework

Discover how SME ecosystems can deliver real value in UK government DDaT programmes, driving innovation, better delivery, and stronger social impact.

The future of the UK Healthcare depends not just on medical excellence, but on digital capability. As the health service embraces a more integrated, data-driven, and technology-enabled model of care, the ability to procure and deploy Digital, Data and Technology (DDaT) skills has become fundamental to achieving this vision. From digital patient records and AI diagnostics to cyber-secure systems and smart analytics, these capabilities are no longer peripheral—they are core to modern, sustainable healthcare. But building this capability at scale requires more than intent. It requires a strategic framework to identify, commission, and grow the right digital skills, especially through public sector procurement. That’s where the Digital Capability Framework for Healthcare 2 (DCFH2) plays a vital role. Why DDaT Skills Are Essential for NHS Transformation The NHS is undergoing a digital transformation aimed at improving care quality, increasing operational efficiency, and reducing health inequalities. Initiatives like "What Good Looks Like", NHS Long Term Workforce Plan, and Frontline Digitisation all rely on embedding DDaT capabilities across the system. Whether deploying EPRs (electronic patient records), modernising infrastructure, or enabling data-sharing across ICSs (Integrated Care Systems), the NHS needs access to: Digital strategists and transformation leads Data scientists, analysts, and governance experts Cloud engineers, cybersecurity professionals, and developers Service designers, agile delivery managers, and digital programme specialists The Role of DCFH2 in Supporting DDaT Procurement The DCFH2 was designed to ensure the UK health Sector have a shared language and structure for identifying digital requirements. Importantly, DCFH2 also supports commissioning and procurement functions in the public sector to: Define What Good Looks Like in DDaT Skills DCFH2 outlines key digital capability domains and levels—from foundational to specialist and strategic. This enables procurement teams to specify clearer requirements in tender documents and contracts, avoiding vague or outdated job descriptions. Inform Supplier Selection and Evaluation Using DCFH2, buyers can assess supplier capabilities against a recognised national framework, ensuring that procured resources meet the digital maturity needs of the NHS. Enable Consistency Across ICSs and Programmes By aligning contracts with DCFH2, ICSs, trusts, and digital leads ensure consistency in workforce expectations—critical for interoperability and scalability. Support Value-Based Procurement DCFH2 encourages a shift from transactional procurement to value-based commissioning of digital skills, aligning spending with long-term transformation outcomes.  The importance of DDaT Ecosystem Partners The NHS doesn’t just need new systems—it needs the skills to use them effectively. Procuring DDaT skills isn’t a side task; it’s a strategic priority. Forward-thinking DCFH2 suppliers have the opportunity to utilise eco-system partners to effectively deliver DDaT skills into outcomes. Working with specialist SMEs can strengthen their contract bids and accelerate outcome delivery. As a trusted resource and technology solutions partner focused on public sector digital transformation, Hanover brings deep expertise in sourcing high-calibre DDaT professionals who understand the complexities of healthcare environments. Our ability to quickly mobilise talent across roles such as data analysts, digital programme managers, UCD specialists, and agile delivery leads makes us a valuable ecosystem partner for suppliers aiming to meet the competency standards and responsiveness required under DCFH2-aligned contracts. By leveraging our network and sector-specific insight, suppliers can enhance their capability, reduce risk, and ensure consistent delivery of outcomes in line with digital transformation goals. Find out more about Hanover’s DDaT and Technology services

The Procurement Act 2023, from February 2025, introduced significant reforms aimed at enhancing public procurement processes in the UK. These changes present unique opportunities for Public Sector Prime Suppliers to collaborate with Small and Medium-sized Enterprises (SMEs), fostering a more dynamic and efficient supply chain. ​ Simplified Bidding Processes The Act introduces a 'competitive flexible' procedure, simplifying bidding and negotiation processes. This flexibility enables prime suppliers to engage SMEs more effectively, leveraging their specialized skills and innovative solutions to meet diverse public sector needs. ​ Open Commercial Frameworks By making commercial frameworks more accessible, the Act ensures that suppliers, including SMEs, are not excluded for extended periods. This openness allows prime suppliers to diversify their subcontractor base, enhancing competitiveness and resilience in project delivery. ​ Strengthened Payment Provisions The Act mandates 30-day payment terms throughout the supply chain, improving cash flow for SMEs. For prime suppliers, this ensures a stable and reliable network of subcontractors, reducing project delays and fostering stronger partnerships. ​ Enhanced Transparency with 'Find a Tender' The upgraded 'Find a Tender' or Central Digital Platform makes procurement opportunities more visible, making it easy to search at no cost and set up alerts for tenders of interest. This transparency facilitates prime suppliers in identifying and collaborating with capable SMEs, streamlining the procurement process and enhancing project outcomes. ​ Greater Oversight and Compliance The establishment of the Procurement Review Unit (PRU) provides oversight across all sectors, ensuring adherence to procurement standards. This oversight encourages fair competition and accountability, benefiting both prime suppliers and SMEs by promoting a level playing field. ​ Conclusion Embracing the reforms of the Procurement Act 2023 allows Public Sector Prime Suppliers to build robust ecosystems with SME suppliers. This collaboration not only enhances service delivery but also contributes to economic growth and innovation within the public sector.

In today's ever-evolving business landscape, understanding IR35, also known as the 'off-payroll working rules,' is crucial for both companies and contractors. This blog post will delve into the key facts, updates, and strategies related to IR35. What is IR35? IR35 was first introduced in 1999 as the 35th mandate of the year by the then Inland Revenue, now known as HMRC. The legislation was signed into law on April 6, 2000, and it applies to individuals who supply their services through an intermediary, typically a Limited Company. The primary aim of IR35 is to ensure that contractors working through their limited company, who would otherwise be considered employees if the limited company were not in place, pay employment taxes and National Insurance Contributions (NICs). This is commonly referred to as being "inside IR35." History and Background Initially, contractors were responsible for determining their IR35 status. However, with the implementation of new rules in April 2017, public sector organizations became responsible for determining the IR35 status of their contractors. This shift aimed to increase compliance and reduce tax avoidance. In April 2021, the private sector reform adjusted the responsibilities so that medium and large end clients took on the legal responsibility of determining their contractors' IR35 status. When Does IR35 Apply? IR35 applies when a contractor operates through a UK-limited company, regardless of the work location. It affects contractors engaging via their limited company with public sector clients, such as local authorities, universities, and national service organizations. And currently for medium or large private sector clients, the client must meet two of the following criteria: Have an annual turnover of at least £10.2 million Have assets of at least £5.1 million Employ at least 50 staff Where the IR35 Rules Differ The IR35 reforms that came into place in April 2021 do not apply if a private sector client is considered a small company, as they fall under the small company exemption. As of April 6, 2025, the thresholds for determining a company's size for IR35 purposes have increased. This means that more medium-sized companies will fall under the small company exemption. To fall under the small company exemption a client must meet two of the following criteria: Have an annual turnover of not more than £15m (increased from £10.2m) Have assets of not more than £7.5m (increased from £5.1m) Employ no more than 50 employees If a contractor is working for a client based entirely overseas, and the client has no presence in the UK, the IR35 reforms do not apply. In both instances, the contractor is responsible for determining their own IR35 status and paying the appropriate taxes. When IR35 was introduced into the public sector, HMRC's guidance stated that, where end clients were engaging in fully contracted-out services via a third party, the end client would not need to determine the IR35 status of workers supplied by the outsourced services provider. The service provider would need to determine the status of its own contractors. Inside vs. Outside IR35 Understanding the difference between working inside and outside IR35 is essential for contractors. Outside IR35, contractors can work as self-employed and will be paid gross. Inside IR35, contractors engage via limited companies, are employed for tax purposes only, and have PAYE and National Insurance Contributions taken from their gross pay, resulting in a net salary. Some clients opt to engage contractors through an Umbrella Company to mitigate risks, as the off-payroll working rules do not apply in such cases. The Umbrella Company employs the Contractor directly, so the off-payroll working rules do not apply as the contractor is on payroll. Determination Factors Several factors can determine a contractor's IR35 status: Supervision, Direction, and Control : Can the contractor decide when, where, and how the work is completed? Substitution : Does the contractor have the option to send someone else to deliver the work if they are unavailable? The client would need to consider if they would allow the contractor to send a substitute since real-world scenarios will be considered over and above what is stated in the contract. Mutuality of Obligation : If there is no work available, is the client obliged to find some, and is the Contractor obliged to complete the work? Financial Risk : What financial risks is the contractor undertaking to deliver the project or promote their business activities? For example: Is the contractor expected to fix any mistakes they have made at their own time and expense? Does the Contractor pay for business insurances to protect them and their business activity? Part and Parcel : Will the contractor be embedded in company life? Will they have access to staff facilities, staff social events, or receive staff benefits? Responsibilities Public sector and medium and large-sized private sector clients must decide the IR35 status of an engagement and share the status determination statement (SDS) with all parties in the supply chain. All clients must take ‘reasonable care’ when determining IR35 status. HMRC defines reasonable care as acting “in a way that would be expected of a prudent and reasonable person in the client’s position.” Clients must provide a “client-led status disagreement process,” as either the recruiter or the contractor may dispute the IR35 determination. Conclusion Understanding IR35 and its implications is essential for both contractors and companies. By staying informed about the key facts, updates, and strategies, you can navigate the complexities of IR35 and ensure compliance with the regulations. About Hanover Hanover is a hybrid IT services and staffing company helping the UK Public Sector digitise and improve public services. We operate alongside some of the worlds top Systems Integrators as an SME Ecosystem partner. Find out more about our services