HC Deb 05 December 1988 vol 143 cc60-2W
Mr. Kirkwood

To ask the Secretary of State for Social Security if he will make a statement on the projected costs of the computer operational strategy; whether the costs conform to budget; and if he will make a statement.

Mr. Robin Cook

To ask the Secretary of State for Social Security (1) what is his Department's(a) original and (b) latest estimate of the cost of the operational strategy computerisation project;

(2) what are his Department's (a) latest and (b) original estimates of the annual savings from implementing the operational strategy computerisation project.

Mr. Peter Lloyd

The 1982 publication "Social Security Operational Strategy: A Framework for the Future", a copy of which is in the Library, provided broad estimates that, at November 1981 prices, the operational strategy would cost £720 million and produce net savings of £1,160 million over the 20 years to 2001–20.

Our latest estimate, at 1987–88 prices, is that the Department's total investment will be in the order of £1,200 million. These costs have been, and are expected to be, contained within the moneys allocated to the Department annually and as shown in the Public Expenditure White Paper. The strategy is already producing small savings in administration costs and these are expected to rise to around £150 million per annum by 1995.

These estimates are not directly comparable because the original figures were calculated for a group of projects significantly different in scope and content from those now under development or in operation.

Mr. Madden

To ask the Secretary of State for Social Security what contact has been made with those concerned with the supply to local Department of Social Security offices of computer equipment and software since the social fund was introduced; and what penalty payments manufacturers or suppliers have been required to make because of dissatisfaction with equipment and software.

Mr. Peter Lloyd

The Department maintains regular contact with its suppliers by means of monthly contract meetings. The principal contractor has assigned staff to support the Department and they frequently attend at the development centre. Initial bedding-in problems are not uncommon with new systems and those experienced by the social fund computer systems are now being satisfactorily resolved. No circumstance has arisen in which it has been necessary to consider the imposition of penalty payments.

Mr. Madden

To ask the Secretary of State for Social Security what complaints he has received from local Department of Social Security offices about the breakdown rate of computers; and how many complaints from Department of Social Security offices in Bradford have been received.

Mr. Peter Lloyd

A number of complaints have been received from local offices about the social fund microcomputer system. These include instances of system non-availability due to software problems and malfunctions due to hardware faults which do not result in total system failure because of the availability of back-up computers. The release of new software in July 1988 has led to significant reductions in software difficulties.

Offices in Bradford have reported faults on the computer since April 1988 but none of these has resulted in a complete breakdown in the system.

Mr. Madden

To ask the Secretary of State for Social Security what complaints he has received about difficulties experienced by local Department of Social Security offices about problems in inputting data about crisis loans into computer systems.

Mr. Peter Lloyd

A number of complaints were received from local offices in the early stages of the new social fund microcomputer system. These related mainly to the unreliability of the early versions of software. There have been no specific complaints about inputting crisis loans data to the computer system.

Mr. Madden

To ask the Secretary of State for Social Security if he will list, by type and system. microcomputer equipment issued to local Department of Social Security offices; what is the total cost, to date, of supplying such equipment; and in how many cases such equipment has been supplemented or replaced.

Mr. Peter Lloyd

The Department uses British Telecom Merlin M4000 microcomputers in its local offices to help with the administration of the social fund and income support. Local offices also use a small number of microcomputers to provide general administrative support. The equipment was supplemented earlier this year to enable the systems to handle the newly introduced income support in place of supplementary benefit, its predecessor benefit. In addition, the part of the system which helps local office staff locate beneficiaries' casepapers is currently being upgraded to provide additional memory and other enhancements. The total costs of these systems to date is £27 million.

This investment has brought significant improvements in efficiency and has provided local offices with useful computer assistance whilst our mainframe computerisation programme has been under development.

Mr. Robin Cook

To ask the Secretary of State for Social Security what has been the total expenditure on computer consultants in connection with the operational strategy computerisation project.

Mr. Peter Lloyd

The total expenditure on computer consultants' fees, from April 1982 until March 1988, was £45.455 million.