15
Accepted
We asked the Department about the findings of the NAO financial audit of the Department’s...
Conclusion
We asked the Department about the findings of the NAO financial audit of the Department’s 2020–21 accounts, which identified nearly 200 of 1,500 cases where the LEAP reviewers had incorrectly assessed arrears on married women’s entitlement.31 The NAO concluded that, given the complexity of the rules governing State Pension entitlement, it is likely that at least some errors will continue to be made in the correction exercise, particularly with more complex cases. The NAO also found that it is possible that some pensioners who have contacted the Department to find out if they have been 26 C&AG’s Report, Figure 8 27 C&AG’s Report, para 4.5 28 Qq 59, 65–67; C&AG’s Report, para 4.5 29 Qq 62, 67 30 Q 2; Correspondence with the minister for Pensions and Financial Inclusion – delays to payments for state pensions 31 Q 79; C&AG’s Report, para 4.7 14 Underpayments of the State Pension underpaid were wrongly reassured that their payments are correct.32 The Department told us that since the errors were discovered it has strengthened its quality assurance over the LEAP exercise.33 It wrote to us following the evidence session setting out that the financial accuracy rate in the correction exercise improved over time from 87.4% in Q1 of 2020–21 to 96% as of October 2021, although it acknowledged that ‘there is clearly room for continued improvement’.34 The Department said its main focus has been on upgrading and improving its system for managing new State Pension, though it acknowledged that there will be a ‘long period’ where the old State Pension systems continue to be necessary.35 Clarity of communications
Government Response Summary
The government states the recommendation is implemented, detailing significant progress in transforming customer experiences and replacing legacy IT systems, enhancing the Customer Account Management system, strengthening quality assurance processes, and implementing IT changes within the LEAP exercise to reduce errors.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented As outlined at the Committee hearing on 28 October 2021 (questions 39; 46; 64), the Department for Work and Pensions (the department) has made significant progress to transform customer experiences and replace legacy IT systems for state pension payment administration, through the new Get your State Pension (GySP) service. This is part of its ongoing transformation programme. The department introduced GySP in 2018, and it is the department’s first service to fully automate the processing of a benefit, meaning online claims are awarded and paid to the customer without any manual intervention. As at January 2022, 60% of online new claims are processed and paid in this way, designing out clerical error. The department will also automate the majority of customer changes of circumstances in future. This will further reduce potential for clerical error. The department has enhanced the Customer Account Management (CAM) system used to maintain customer records. This now prompts agents to take specific actions before a case can be closed, preventing errors identified as part of the State Pensions Underpayments Legal Entitlements and Administrative Practice (LEAP) exercise. Complex work is now brigaded into specialist areas for control and accuracy purposes. Revised work instructions have been issued to staff, and line managers have delivered sessions to ensure understanding. Enhanced checking of this work is undertaken, targeting elements of the new instructions to ensure compliance. Data matching rules have been developed as an additional layer of assurance. Within the LEAP exercise, the department has implemented IT changes, including automating some of the data entry from different systems and printing of letters.
Source
Committee
Public Accounts Committee
Report
Thirty-Third Report - Underpayments of the State Pension
21 Jan 2022
HC 654
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.5 yrs
Report published
21 Jan 2022