---
title: "UK freezes government credit cards in drive for savings"
description: "LONDON, March 17 (Reuters) - Thousands of government-issued credit cards accounting for hundreds of millions of pounds of spending will be frozen this week, Britain's Labour government said, as it tries to repair the country's strained public finances."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-03-18-uk-freezes-government-credit-cards-in-drive-for-savings/"
published: "2025-03-18T04:40:37"
updated: "2025-03-18T04:40:38"
lang: "en-ZA"
word_count: 243
---

# UK freezes government credit cards in drive for savings

> LONDON, March 17 (Reuters) - Thousands of government-issued credit cards accounting for hundreds of millions of pounds of spending will be frozen this week, Britain's Labour government said, as it tries to repair the country's strained public finances.

By Reuters · Published 18 March 2025, 06:40 SAST · Updated 18 March 2025, 06:40 SAST

## Key points
- In a bid to rein in spiraling government credit card spending—now a staggering 675 million pounds—ministers are slashing budgets and freezing nearly all procurement cards, leaving only a select few officials to wield the plastic, while the rest are left wondering if their essential purchases might just include a new stapler.
- Ministers are poised to announce sweeping welfare cuts amid slowing growth forecasts and strict fiscal rules.
- The government is freezing nearly all of its 20,000 procurement cards to curb wasteful spending, as costs have surged since 2020.
- Cabinet office minister Pat McFadden emphasizes the need for scrutiny, allowing cards only for essential officials.
- The initiative aims to reduce procurement cards by at least 50%, reflecting broader cost-cutting measures in government.

## Content

Against a backdrop of slowing growth forecasts and bound by fiscal rules that limit day-to-day borrowing, ministers are seeking to cut budgets wherever they can. Sweeping welfare cuts are expected on Tuesday before a fiscal update on March 26.

The decision to freeze almost all of around 20,000 "Government Procurement Cards" falls under efforts to reduce wasteful spending, the cabinet office said in a statement late on Monday.

According to the cabinet office, spending on government credit cards has more than quadrupled since the 2020-21 financial year, rising to over 675 million pounds ($876.83 million) in 2024-2025 from around 155 million pounds.

"It's not right that hundreds of millions of pounds are spent on government credit cards each year, without high levels of scrutiny or challenge," cabinet office minister Pat McFadden said.

"Only officials for whom it is absolutely essential should have a card."

Only a minority of staff, including diplomats working in crisis areas, will be spared. Frozen cards will be reallocated to those who can justify a need for them, or else be cancelled by the end of the month.

The aim is to cut the number of cards in circulation by at least 50%.

Government cost-cutting is also on U.S. President Donald Trump's agenda, with [far more drastic measures](https://www.reutersconnect.com/all?search=all%3AL1N3PX01E&linkedFromStory=true), including mass layoffs, being spearheaded by tech mogul Elon Musk's Department of Government Efficiency (DOGE).

($1 = 0.7698 pounds)

(Reporting by Alvise Armellini; editing by William James and Ed Osmond)