§ Mr. SimmondsTo ask the Secretary of State for Work and Pensions what the running costs, including staffing costs, of Jobcentre Plus centres were in each year since 1997; and how many people were employed in centres in each year. [182164]
§ Jane KennedyThe administration of Jobcentre Plus is a matter for the Chief Executive of the Jobcentre Plus, David Anderson. He will write to the hon. Member.
Letter from David Anderson to Mr. Simmonds, dated 20 July 2004:
The Secretary of State for Work and Pensions has asked me to reply direct to your question concerning the running costs and staff costs of Jobcentre Plus centres each y ear since 1997, and how many people were employed in centres in each year. This is something which falls within the responsibilities delegated to me as Chief Executive of Jobcentre Plus.
The information you have asked for can be found in the table below.
152W
Year ended 31 March (for financial figures) Total staff at 30 April (WTE) Staff costs (£000) Other administration costs (£000) Total gross administration costs (£000) 1997 31,550 — — — 1998 30,796 — — — 1999 32,675 — — —
Year ended 31 March (for financial figures) Total staff at 30 April (WTE) Staff costs (£000) Other administration costs (£000) Total gross administration costs (£000) 2000 32,620 — — — 2001 34,110 — — — 2002 185,020 — — — 2003 80,170 1,712,111 1,254,131 2,996,242 2004 79,234 1,669,766 1,384,015 3,023,303 1Staff numbers increase from 2001 to 2002 due to the merger of the Benefits Agency and the Employment Service Source: Cabinet Office Statistics website for Headcount. Latest draft of the 31 March 2004 accounts for financial figures. It may be helpful if I explain that Jobcentre Plus came into existence in April 2002, bringing together staff from the Employment Service and part of the Benefits Agency. It deals with both claims to, and payments of, all working age benefits as well as job-finding activities. Data on staff is collected by grade rather than job role and it is not possible to identify accurately the number of staff working in front facing customer service centres from this information. The financial figures shown are only available since the introduction of Jobcentre Plus.
As these figures show, there has been a reduction in staff numbers from 2003 to 2004 and, as would be expected, the staff costs for 2004 have also decreased. However, the gross administration costs for the agency have increased. This is due to higher costs falling under the heading "Other Administration Costs". There are a number of different categories of expenditure that come under this section of the accounts, although the majority are not directly related to the number of staff employed. The main variances relate to the following:
£ million Areas of expenditure impacted by Jobcentre Plus Implementation Project +71 Increased accommodation costs +22 Increased use of corporate IT services +22 Reduced income from other agencies as less project/non-project work carried out on their behalf +59 Expenditure relating to a contract for provision of IT services has been absorbed by DWP -40 Total +134 I hope this is helpful.