Claimants' Mail (Hansard, 25 April 1995)

§ Mr. Roger Evans

This is a matter for Mr. Ian Magee, the acting chief executive of the Benefits Agency, and he will write to the hon. Member.

Letter from Ian Magee to Mr. David Marshall, dated 24 April 1995: The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question regarding the opening of Departmental post by private sector companies. The "Competing for Quality" White Paper set out the Government's policy for extending choice and competition in the public sector in order to secure better services and better value for money. Market testing is one of the ways in which the Government aims to extend competition and achieve more effective, more accountable and more business-like management in the public sector. This does not mean that work is automatically contracted out to the private sector. Main elements of the market testing process are to review the existing in house service, to establish precisely the standard of service that the customer requires, and to encourage and support the existing staff in seeking ways to improve the efficiency and effectiveness of their work. The work will only be awarded to an external contractor if the existing staff cannot provide the required service at best value for money for the taxpayer. As part of this initiative the Benefits Agency has market tested a number of accommodation and office services including typing, security guarding, messengers and post opening operations. The work was grouped in geographical packages before being market tested. The outcome of the tests has been a mixture of wins by in-house and external suppliers. Some of the successful in-house bids were made in partnership with the Royal Mail and in the Tyne/Tees, North and West Yorkshire, Scotland, East Midlands, Wales, Greater Manchester and South East areas the Royal Mail now open and sort post under contract to the Benefits Agency. All mail is opened under careful supervision in a separate, secure area which is locked at all times and only staff directly involved in the contract will be allowed access to this area. Whilst the post is being opened and sorted no one is allowed to enter or leave the room. Any mail marked "Private', "Personal" or "Confidential" is left unopened. The sorted mail is then placed in sealed bags and delivered to the Agency's District Offices each morning. Benefits Agency contracts with external suppliers contain all the safeguards that are normally applied to Civil Servants including the requirement to sign a declaration acknowledging the provisions of Section 123 of the Social Security Act 1992 which makes it a criminal offence to disclose personal information needed to establish benefit entitlement. This is a highly complex operation run by well-trained staff, who previously had to be removed from benefit work to attend post opening. This method of operation cost the Benefits Agency a considerable amount of staff time and money and the new arrangements free staff to deal with benefit work. Typically the revised operation frees the equivalent of 2 extra staff in an average office, and also guarantees that the mail is ready to be dealt with by staff, on average, 11 hours earlier than had previously been the case. This presents a real opportunity for enhanced customer service. Savings, in simple cost terms, have also been achieved for the tax payer. The Benefits Agency has ensured that in seeking to provide better value for money in the delivery of public services the highest standards of quality and confidentiality will be maintained. I hope you find this reply helpful.