Socitm, the association for public sector IT professionals, and the Local Government Association have reached an agreement to save money for local authorities connecting to the Public Sector Network (PSN).
The move follows concern from local authorities about connection costs to the Government Secure Extranet (GCSx) - the network that will enable data sharing across government.
Under the previous agreement some public services organisations may have been forced to terminate their GCSx connections, given the severe pressures on budgets in the present financial climate. Now they will no longer be required to make any new investments into the running of the system.
Dylan Roberts, chair of Socitm Futures, said GCSx is seen as the natural transition to PSN that will be more aligned to local public service requirements.