Prior Options Review (Hansard, 29 March 1995)

§ Mr. Portillo

The review is now complete and I have placed a summary of the review's conclusions in the Library. I have accepted all its recommendations, subject to the following points. The report sets out a compelling case for the agency and demonstrates its importance to the640W labour market. As the evaluation undertaken in support of the review shows, the Employment Service has steadily and substantially improved its performance since it became an agency in 1990. It also confirms the value of integrating job-broking, advisory and benefit services.

The prior options review confirms the importance of the work of the ES in helping employers and unemployed people to operate more effectively in the labour market. The policies the agency has pursued have played a significant role in helping unemployed people, particularly those at a disadvantage, to compete effectively and actively for jobs. That has assisted many employers in filling their vacancies. The ES's operation as an agency has enabled it to meet increasingly stretching performance targets, while achieving better value for money for the taxpayer.

I therefore endorse the recommendation of the review that the agency status of the ES should be confirmed. A new framework document will be drawn up to reflect working arrangements for the operation of the jobseeker's allowance subject to the passage of the necessary legislation. The ES, along with the Benefits Agency, will have a crucial role to play in implementing the JSA and ensuring it is delivered effectively, to a high standard of service to its clients and with increased benefit to the operation to the labour market. I am pleased that the review confirms that the ES is well positioned to carry out these tasks.

The review recommends that, once the JSA is implemented successfully, there will be scope to test the potential for private sector involvement in the delivery of functions, other than adjudication, that are carried out in ES offices. I accept this conclusion in principle. My aim would be to take forward the review's proposal to market test the work of two or three ES districts in 1997 once the JSA has been fully introduced and subject to establishing the feasibility of separating adjudication from other aspects of the work of districts.

I shall also be asking the ES to work up proposals for a market test in, one or two regions of placing, assessment and counselling teams, which provide specialist services for unemployed people with disabilities.

The review also made recommendations about ES fraud work. My right hon. Friend the Secretary of State for Social Security and I are considering how the fraud work currently undertaken by the ES and the BA will be organised under the JSA and will make an announcement shortly.