§ Mr. Eggarasked the Secretary of State for Social Services if he will list and describe the studies from within or without his Department relating to the effectiveness and efficiency of his Department together with the recommendations and action taken on those recommendations.
§ Mr. Geoffrey FinsbergThe pursuit of effectiveness and efficiency is a continuing concern in the Department. Regular studies include policy reviews, Rayner scrutinies, the work of management services operational research, staff inspection and internal audit. Such studies form an essential part of good management and have been given extra impetus by this Administration's expressed determination to cut out unnecessary work, simplify activities, and, more generally, get the best value for the taxpayer's money. Staff are also encouraged to contribute their ideas through a suggestions scheme.
Full details about all of these studies and of the action resulting from them could only be provided at disproportionate cost. However, the following are some examples of what has been achieved during the past three years:
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- 1. The introduction of statutory sick pay, which is due to save 3,000 staff;
- 2. Review of the adjudication system with a view to streamlining it;
- 3. Comprehensive internal reviews of the administration of most social security benefits, with annual savings which may reach £10 million;
- 4. The study of traffic between HQ, regional and local offices resulting in devolution of more work to local offices and a consequent reduction in the number of social security regions from 12 to 7 with a substantial saving in staff;
- 5. The introduction of scrutinies for the NHS; on the same lines as those introduced by Sir Derek Rayner;
- 6. Arrangements for greater accountability within the NHS, including reviews of plans and performance;
- 7. The introduction of new technology, such as Datalink, in local offices resulting in a more efficient communication with central records at Newcastle;
- 8. Major Rayner scrutinies have included:
- (i) revised arrangements for paying social security benefits, which has so far saved £8 million in administrative costs, a figure which is eventually due to reach £35 million;
- (ii) arrangements for payment of benefits to unemployed people which, directly or indirectly, has resulted in a saving of over 1,000 staff with a further 1,000 agreed for future implementation;
- (iii) validation of national insurance contribution records, which has resulted in a saving of 212 staff with a further 903 due to be saved, mostly in 1982–83;
- (iv) review of administrative forms, resulting in the setting up of a Forms Unit with the aim of reducing the number of forms and improving the quality of those which are to continue in existence;
- 9. The introduction of a budgetary control system.
This year we are preparing our plans under the financial management initiative announced in Cmnd. 8616—"Effectiveness and Efficiency in the Civil Service". We also expect to mount three Rayner scrutinies, as well as taking part in a multi-departmental review of line management responsibilities and continuing with a full programme of staff inspection, management services assignments, etc.
In addition, the Department is subject to the full range of examinations carried out by the Exchequer and Audit Department, the results of which are reported to the Public Accounts Committee of the House of Commons.