The Civil Service is being urged to accelerate progress to achieve value for money after more than £3.4 billion was saved in 2020-21 through cost-cutting across Whitehall.

The Cabinet Office said better use of data and improved digital expertise were “key drivers” behind the savings, which included £138 million through the termination or prevention of fraudulent personal protective equipment (PPE) contracts.

Simon Clarke, Chief Secretary to the Treasury, said the £3.4 billion saved in 2020-21 shows the Government “can get better results from the money we spend”, but “we know we need to go further”.

“The Chancellor’s new Cabinet-level efficiency and value for money committee will leave no stone unturned as we investigate all Government spending to make sure we are getting the most for the taxpayer,” he added.

Other savings in 2020-21 included £10 million through taking disability badges that were forged, stolen or belonged to deceased people off the street, and £14 million of prevented fraudulent bounceback loans.

The Government also uncovered £25 million of pension claims made on behalf of dead people, £21 million of illegal council tax discount claims, and £1.7 million of people using concessionary travel without qualifying.

Minister for government efficiency Jacob Rees-Mogg called for the Civil Service to accelerate the efficiency drive.

He said: “Taxpayers have the right to expect every penny of their money to be justified before it’s spent.

“These figures show quality need not be sacrificed to achieve better value for money, and I want to accelerate the progress made.

“We are ensuring the Civil Service is delivering the Government’s top priorities while ensuring the best possible value for taxpayers.”