The Department for Work and Pensions (DWP) has terminated a contract with Fujitsu to manage its desktop computers and replace its PCs with thin clients.

The six-year deal, agreed in 2010, was for Fujitsu to manage 140,000 desktops for DWP's entire workforce and develop a thin-client system.

Under the deal, Fujitsu was to provide the DWP with thin-client machines to replace its desktop PCs, a move Fujitsu said would generate tens of millions of pounds in savings on energy costs.

A spokesman for Fujitsu confirmed the company was still developing the thin-client system when the deal had been cancelled, and that none of the hardware had been delivered.