Social Security Agency (Hansard, 19 April 1996)

§ Sir Patrick Mayhew

On 19 October 1994, I announced the review of the Social Security Agency—SSA—in the House of Commons. Each next steps agency undergoes a periodic review to evaluate performance, to reconsider in a prior options study whether agency status is the best way of doing the job and to revise the framework within which it operates.

I am pleased to announce that the evaluation report of the agency's performance since it was established in July 1991 has been published today. The overall conclusion of the evaluation is that, in keeping with the principles of next steps, the quality of service to the public has improved and social benefits have been delivered in a more efficient and effective way.

The main conclusions of the prior options report are that the SSA should remain a next steps agency within the Department of Health and Social Services. There is no scope for abolition or privatisation, nor is there any evidence to suggest that wholesale contractorisation of its functions is at present feasible or likely to improve value for money for the taxpayer.

The conclusion on wholesale contractorisation does not mean that there are no opportunities for increasing competition within the organisation. The agency is already involved with the private sector in a number of areas, such as encashment services, management training, information technology and ancillary services. In particular, it is involved as co-sponsor with the Benefits Agency and Post Office Counters Ltd. in a private finance initiative to replace existing methods of payment at post offices with a benefit card. The agency also has a market-testing strategy, which will result in its support functions being subject to the market-testing process in line with recommendations of a consultancy report.

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The review goes on to recommend a number of further steps which the agency should take to improve its efficiency and effectiveness, consistent with the Government reform initiative and the Northern Ireland civil service programme for continual improvement. These include the development of a comprehensive strategy for achieving efficiency improvements through involving the private sector in all aspects of its business, including benefit administration; the continued implementation of its market-testing strategy, pending more comprehensive strategy for involving the private sector; and the examination of the scope for developing internal competition, including benchmarking and purchaser/provider relationships.

In conclusion, the review has highlighted the significant improvements in customer service and efficiency which the agency has achieved since its establishment in 1991. The chief executive and his staff are to be commended for these achievements. The recommendations of the review are designed to build on these successes. I am placing a copy of the evaluation report and a copy of the executive summary of the prior options report in the Library today. Work is continuing on a revised framework document, and I shall arrange for a copy to be placed in the Library in due course.