§ 2.58 p.m.
§ Earl Alexander of Tunis asked Her Majesty's Government:
§ What progress is being made with the strategy to computerise the Department of Social Security's benefit payment systems.
§ The Parliamentary Under-Secretary of State, Department of Social Security (Lord Skelmersdale)My Lords, the Department of Social Security's highly complex £1.2 billion strategy for the computerisation of the social security benefit payment systems is proceeding to the accelerated timetable announced on 22nd November 1988. The major systems for the payment of pensions and income support are being piloted in 23 local offices to ensure they are running smoothly before national implementation starts in autumn this year. All central and local offices will be computerised by August 1991.
Earl Alexander of TunisMy Lords, I thank my noble friend for his reply. Can he tell the House what effect the system will have on fraudulent claims?
§ Lord SkelmersdaleMy Lords, what matters to claimants, as well as the speed with which their claim is actioned, is accuracy and clarity of explanation. The new computerised departmental central index is already beginning to combat fraud because the computerisation makes it very much easier to check, for example, whether double applications have been made. Installed in the 23 pilot social security offices, the system has exposed a number of bogus claims for income support. We are taking action to ensure that offices yet to receive the system can check suspicious cases with those that already have the system, thus exposing fraudulent claims.
§ Baroness Turner of CamdenMy Lords, can the Minister tell the House whether the strategy which he has outlined will have the effect of diminishing queues at local benefit offices and generally improving efficiency?
§ Lord SkelmersdaleYes, my Lords. As I said, what matters to claimants is the speed, accuracy and clarity with which their claim is actioned. Where the issue of the length of queue arises, certainly a faster throughput of customers in local offices will be achieved.
§ Lord StallardMy Lords, will computerisation improve the collection of statistics concerning poverty so that Ministers are better informed of the numbers involved?
§ Lord SkelmersdaleMy Lords, the statistics on poverty normally come from the family expenditure survey. That is a direct application investigation; it has nothing to do with the number of people claiming social security benefits.
§ Lord Bruce-GardyneMy Lords, can my noble friend give any indication of the ultimate advantage to the taxpayer of this exercise?
§ Lord SkelmersdaleYes, my Lords. We anticipate that there will be reduced administration costs benefiting the taxpayer to the tune of about £150 million a year by 1995.
§ Baroness Turner of CamdenMy Lords, can the Minister say whether he envisages that there will be redundancy among the staff as a result of the introduction of this system? If so, can he say what steps are being taken to deal with the situation?
§ Lord SkelmersdaleYes, my Lords. Clearly some—indeed, a large part—of the figure of £150 million a year will be used as regards the reduction of staff. We have given staff a guarantee that there will be no compulsory redundancies as a result of the operational strategy; that is, this computerisation project. Staff have accepted that fact. It is envisaged that by 1995 or thereabouts there will be something in the region of 20,000 fewer staff in local offices.