§ Mr. FieldTo ask the Secretary of State for Social Security what flexibility the new performance management regime allows managers in spending their budgets with particular reference to the(a) administration and (b) benefit budget. [79226]
§ Mr. TimmsThe administration of the Benefits Agency is a matter for its Chief Executive, Peter Mathison. He will write to my right hon. Friend.
621WLetter from Peter Mathison to Mr. Frank Field, dated 29 March 1999:
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking what flexibility the new performance management regime allows managers in spending their budgets with particular reference to the (a) administration and (b) benefit budget.The flexibility offered to the Area Director is limited to his administration budget. There is no mechanism under Government Accounting rules which allows for flexibility between administration and benefit budgets.The new performance management regime refers to the new Public Service Agreement (PSA) target to reduce, by at least 30 per cent., benefit losses from fraud and errors in Income Support and Jobseeker's Allowance by 31 March 2007. This replaces the present annual Secretary of State target for weekly benefit savings from counter-fraud activities.The new regime is to be funded by the Departmental Programme Protection Fund, a single source of funding designed to deliver the PSA target. This replaces Security and Control Programme funding for the Benefits Agency from 1 April 1999.The current regime ties Area Directors to activity volume targets for new claims activity and targeted reviews. Emphasis has been placed on detection by setting targets for fraud savings from cases examined by fraud officers.The new regime offers Area Directors much more flexibility in how funding can be used. They are no longer restricted by activity targets but can be more responsive to local conditions and knowledge. The emphasis is on each Area Director producing, and being accountable for, a Programme Protection Plan which shows how they can optimise their available resources to contribute towards achieving the PSA target. They will all provide evidence, supported by further tiers of programme indicators and management information, of how they are contributing towards the overall PSA target. Whilst they will have more flexibility on how their money is spent, the Area Director will account for how the funds are being targeted to best effects.I hope you find this reply helpful.