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Of course i saves money.. Have you ever worked with Gov IT projects?
As soon as you upgrade/change Anything you have to 'retrain' staff. You would be amazed how stubborn (petulant) some workers can be. Also, at the moment everything 'works'. If they upgrade then discover a multitude of council portals no longer render correctly, or some dodgy activeX implementation is to insecure, are these to be updated as well?
The UK gov will almost certainly hold out until XP comes to an end under the 'it works, well enough' concept.
At that point, it will be all change. Windows 7? Linux/Open Source OS*?
*Don't forget the Conservative (Main Party) 'digital manifesto' advocated greater use of open source software in local and national gov