Government Connect (GC), a £33m programme to extend central government’s secure email network to local councils, passed two very significant milestones last week.

First, the scheme has identified areas where savings can be made, allowing it to pledge £2.25m to assist local authorities to connect to the network.

Second, all 410 local authorities in England and Wales have agreed to sign up ­ – a major step as many were struggling with the cost of getting connections in place.

GC is important because it will allow local authorities and central government to exchange information securely over a private network rather than the internet ­ – increasingly crucial for government at a time when every week brings a new data loss story.

Getting the scheme up and running will improve the efficiency of information exchange in the public sector, said programme director Philip Littleavon.

“What councils are beginning to latch on to is that they can set up one secure account and use that for everything,” he said.

Councils need to be connected to the system by April next year, otherwise they will be unable to exchange data with the Department of Work and Pensions (DWP), although those that think they will miss the target can submit a request for a six-month extension.

Littleavon said the “vast majority” will meet this date, though some had already requested extensions.

The scheme ­ – now eight years old and still unfinished ­ – has had a chequered history and has been a source of conflict between central and local government.

A complex code of connection has made it difficult for some smaller local authorities without the necessary IT resources to connect.

It has not helped that central government responsibility for the programme has been shunted round various different departments – ­ the Department for Communities and Local Government, the Cabinet Office, and finally the Department for Work and Pensions, where it remains now, chiefly because the bulk of information that will be transferred over the network will relate to benefits distribution.

Littleavon hopes the extra funding and a panel of experts put in place to provide local authorities with best practice will counter claims thatcentral government was imposing over-strict deadlines and not doing enough to help councils comply.

As well as connecting authorities to central government, the programme will also allow councils to securely exchange data with the N3 national health network, criminal justice, trading standards and police systems. These connections will not go through central government but directly into the systems themselves, allowing councils to share sensitive information on police, asset recovery and judicial operations in a secure way.

“Upper-tier councils provide some of this information to health and law enforcement authorities now in a less secure way than is ultimately desirable,” said Littleavon.

The latest developments are welcome, but more needs to be done, according to Richard Steele, president of public sector IT association Socitm. “We welcome the new leadership and the increased assistance from central government,” he said. “However, we want a vision for security where the entire public sector is on one infrastructure rather than a series of connecting infrastructures, and we’re working with government to try and articulate that message.”

The scheme will also help councils meet a local government version of the data handling review, put together by the Local Government Association (LGA), according to Stephen Jones, director of finance and performance at the LGA.

“In the wake of recent data loss incidents and concerns that the public are losing their trust in government’s ability to secure personal information, the guidelines will help councils meet their responsibilities,” he said.

“The guidelines complement and support the role that Government Connect can play in this.”