PM David Cameron's ‘nudge unit' – once derided as the ‘wackiest and most vogueish corner of government' has defied critics by securing contracts to sell its expertise.

Formed in the early days of the coalition to find ‘intelligent ways to encourage, support and enable people to make better choices for themselves', the 11-strong team will now work with the government of New South Wales, Australia and a local housing association in Norfolk.

According to an internal review, the behavioural insights team (BIT) led by Dr David Halpern - on secondment from the Institute for Government - has identified £300m savings across government over the next five years.

Dr Halpern's team maintains strong links to Professor Richard Thaler, the US-based academic who coined the term in an influential 2008 book entitled ‘Nudge: Improving decisions about health, wealth, and happiness'

Charged with applying Prof Thaler's insights to policy, the ‘nudgers' have worked with the Department of Work and Pensions and councils in exploring how to prompt people to notify authorities of changes in circumstance. They hope by shifting responsibility for notification to service-users, for example by removing single person discount for council tax if residents fail to respond, people would be far less likely to commit fraud ‘accidentally.'

Other departments and agencies assisted by the team include the UK Courts service and HM Revenue and Customs.  Though sending personalised text messages, the justice agency increased the number of fine payments made by six times sending generating £30m cost-savings.