§ Mr. DonohoeTo ask the Secretary of State for Social Security, pursuant to her answer of 21 April 1998,Official Report, column 606, if the initiatives her Department is undertaking within the Benefits Agency involving the private sector include debt management and debt collecting; what feasibility and pilot studies have been undertaken involving the private sector in these functions; and what plans she has to contract out these operations. [40604]
§ Mr. Keith BradleyThe administration of the Benefits Agency is a matter for its Chief Executive, Peter Mathison. He will write to my hon. Friend.
Letter from Peter Mathison to Mr. Brian Donohoe, dated 5 May 1998:
The Secretary of State for Social Security has asked me to reply to your recent parliamentary question asking, pursuant to her Answer of 21st April, if the initiatives her Department is undertaking within the Benefits Agency (BA) involving the private sector include debt management and debt collecting; what feasibility and pilot studies have been undertaken involving the private sector in these functions; and what plans she has to contract out these operations.Three of the BA's Area Directorates are currently working in partnership with three private sector consortia as part of the ADAPT 98 project. The partnership began on 13 August 1997 and will last for up to 12 months. During this partnership period, the private sector partners' primary activity is to gain a full understanding of BA operations and to formulate proposals for improvements in service delivery. Debt management and debt collecting are a core 428W part of the BA's business and if any proposals relating to this area are to be made by the ADAPT partners, they will be contained within their proposals expected by the end of the partnership period.A pilot study was conducted by two private sector companies between March and December 1996. This was to assess debt recovery's suitability for market testing, with particular emphasis on political sensitivity, confidentiality of information and standards of conduct. The conclusion was that BA debtors and the wider public had no undue concerns about the use of private contractors.As yet no decision has been made to involve the private sector in debt management or debt recovery work in the BA.I hope that this is helpful.