Departmental Productivity (Hansard, 17 January 2000)

§ Mr. Rooker

Delivering efficient and modern public services is a key part of our agenda for improving efficiency. Greater efficiency is being sought therefore within the public sector to ensure that the most effective results are obtained from available resources. The Department's Public Service Agreement (PSA) Cm 4315, includes a range of measures for taking this forward, both within the Department itself and in other public bodies.

Those measures which will help raise the Department's own productivity are as follows:

Reducing Fraud

"A new contract for welfare: Safeguarding Social Security" (Cm 4276) sets out our strategy for tackling fraud and error. It explains how the Department will shift the emphasis from detection to prevention of fraud and error in the Social Security system.

Work is under way to bring forward the other elements of the strategy by developing an integrated approach across the Department, and those other bodies with whom it works.

Better Quality Services

Better Quality Services (BQS) reviews are part of the Department's approach to Modernising Government. BQS is a cross-Government approach led by Cabinet Office, under which Government Departments must examine all 335W options to achieve best quality and value for money in delivering their services. Cabinet Office has approved a five year BQS Action Plan to review rigorously all functions across the Department. Our reviews will focus on end results, maximising potential for synergies in service delivery across the Department and delivering continuous improvement. We have completed reviews of IS/IT, procurement, consultancy, audit and finance and planning activities. 60 per cent. of services and activities will be reviewed by March 2003 in line with the PSA target.

Electronic Government

In 1997 my right hon. Friend the Prime Minister announced that by October 2002, one quarter of dealings with the Government can be done by a member of the public electronically, through their telephone, TV or computer. The Modernising Government White Paper (MGWP) (www.citu.gov.uk/moderngov.whitepaper/4310.htm) added additional capability milestones of 50 per cent. by 2005 and 100 per cent. by 2008. Progress is monitored every six months, and put on the web (www.citu.gov.uk/25percent menu.htm).

This White Paper committed the Department to delivering a Corporate IT Strategy that will enable stronger co-ordination on key issues such as Government Websites, Call Centres, Smart Cards, Digital TV and the inter-operability of Government IT Systems. The aim of the Strategy is to further a more coherent approach to the development of the Government's use of IT, and its integration with that of the wider public sector.

The Strategy, which will be completed in March, is being developed by the Information Age Government Champions team drawn from all Government departments. The website (www.iagchampions.gov.uk) has their terms of reference and has, or will, publish for consultation the guidelines on

Call centres
Digital television
Government on the Internet
Data standards
Smartcards

At the infrastructure level, we are preparing our key objectives for data management and established technology frameworks, and we are developing public sector coherence through the use of our Government Secure Intranet.

Reducing Sickness absence

Progress includes an improved model for measuring sickness absence, detailed analyses of the patterns and causes of sickness, issuing guidance to managers and raising awareness within the Department. Each Agency has also been set a target to reduce absences by December 1999 as part of a contribution towards meeting the overall PSA target.

Improving procurement

(i) DSS spends about 50 per cent. of its running costs on goods and services. In 1998–99 this amounted to about £1.5 billion.
(ii) DSS has adopted a strategic approach to supply management. A Supply Strategy Steering Group (SSSG) with senior cross-Business Unit representation was established in 1997 to steer, develop and articulate DSS policy and strategy for use of external resources in the provision of business services. Martin 336W Sykes was appointed Director of Supply Strategy (DoSS) from the private sector on 1 June 1998, he reports to the Departmental Board (DB) and sits on the ITSA Board.
(iii) Past exercises to test DSS supply requirements against the market have led to a significant proportion of DSS support services now being provided by external suppliers—significant areas of business currently provided in this way are:

Estate management, accommodation and office services;
Information Systems/Information Technology operations; and Medical services.

(iv) In partnership with the private sector the Department is seeking to support Modern Service delivery, for example by the replacement of Information Systems/Information Technology systems through the ACCORD project.
(v) A fundamental review of procurement and supply arrangements across DSS recommended changes which were approved by DB in November 1999. The review addressed the requirements of Better Quality Services and focused on ways to improve the quality of the procurement service and develop our ability to contribute to business objectives, particularly Modern Service delivery. It identified ways to streamline the organisation, develop and focus expertise and improve assurance and VFM in supply arrangements. A key initiative will reorganise the current procurement units which support specific Business Units or office complexes into a coordinated, streamlined corporate structure. The new structure will provide better quality procurement services. It will also eliminate duplication, giving local managers opportunity to redeploy staff or realise efficiency savings. Plans to implement these recommendations by end September 2000 are being developed.
(vi) We have completed a Contract Management Development Project and developed a strategy for contract management and initiatives to strengthen contract management in DSS.
(vii) An External Resources Project has examined our use of consultants and contractors and has proposed ways to improve control and value in its Final Report dated 27 July 1999. A further piece of work is under way to address Ministers' request that we examine the potential to reduce our use of external personnel by enhancing our in-house capability.
(viii) The Department is committed to the Government Procurement Card (GPC) and has developed plans to roll out GPC in order to reduce transaction costs and meet payment time obligations.
(ix) In the Department about 120 staff are engaged full-time in procurement activity, of whom 73 (61 per cent.) are qualified to at least CIPS foundation level. In addition about 30 staff are currently training towards qualification. We are on course to meet the PSA target to increase our proportion of CIPS qualified staff. A parallel target is 75 per cent. CIPS qualified staff by 2000.
(x) The Department has worked with external partners to develop a Contract Management Best Practice Model. The model will enable the Department contract management groups to assess performance against best practice and develop plans for improvement. Following a successful pilot the model has been rolled out.

Efficiency Targets

At the heart of the Department's welfare reform programme is the need to transform delivery from a passive to an active modern service promoting opportunity as well as paying benefit and exercising far better control over programme costs.

The Department will seek to achieve this by the introduction of a mixture of administrative and legislative measures

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The Department will: continue to develop better measures of efficiency and extend these to cover a wider range of Departmental initiatives; achieve a better alignment of resources with services delivered, through more systematic use of output prices, and the wider disciplines of Resource Accounting and Budgeting; publish service first charters and baseline performance and achieve the agreed targets; reduce by 30 per cent. benefit losses from fraud and errors in Income Support and Jobseekers Allowance by March 2007, with at least a 10 per cent. reduction by March 2002; deliver existing services within the running costs total implying an annual efficiency gain of at least 4 per cent. and aiming particularly to ensure tighter control of central costs and overheads; and, invest in modernisation as the route to a more secure and efficient welfare system.

Agency Targets

To support the Departmental commitments in the PSA, my right hon. Friend the Secretary of State sets annual targets for the Department's Agencies. A full list of these can be found in the Next Steps Report and in individual Agency Business Plans and Charters. Copies of these documents can be found in the Library.