9
Accepted
The Office for Budget Responsibility’s Fiscal Sustainability Report (July 2020) outlines that ‘unemployment is likely...
Conclusion
The Office for Budget Responsibility’s Fiscal Sustainability Report (July 2020) outlines that ‘unemployment is likely to be materially higher for several years’ and forecasts that unemployment will significantly increase from its current level (it assumes 15 per cent of people on the Coronavirus Job Retention Scheme will ‘move into unemployment’ in its central scenario).15 In response to questioning on how the Department is preparing for another possible increase in benefit claimants over the next few months, it told us “we are developing very robust business continuity programmes that build on what we have learnt”.16 The Department has been promised an additional £895 million of funding as part of the ‘plan for jobs’ (announced on 8 July) ‘to enhance work search support by doubling the number of work coaches in Jobcentre Plus before the end of the financial year across Great Britain’.17 The Department told us that it aims to increase the number of work coaches from 13,500 to 27,000 by the end of March 2021; it explained that it is currently in its second wave of recruiting and is hiring 8,000 staff (4,500 work coaches and 3,500 to work in service centres and back-office processes to help manage claims).18 9 Q 5 10 Q 1 11 Q 5 12 DWP ARAC 2019–20, page 193 13 C&AG’s Report, Departmental Overview 2019–20: Department for Work & Pensions, 13 October 2020, page 18. 14 C&AG’s Report, Universal Credit: getting to first payment, Session 2019–21, HC 376, 10 July 2020, page 33, para 2.8 15 Office for Budget Responsibility, Fiscal Sustainability Report, July 2020, pages 38–39, 137 16 Q 5 17 HM Treasury, Plan for Jobs, CP 261, 8 July 2020, page 9, para 2.17. 18 Q 5 Department for Work and Pensions Accounts 2019–20 11 2 Fraud and error Pre-COVID-19: fraud and error at record levels
Government Response Summary
The government states it has already implemented measures to prepare for future surges in benefit claims, detailing its flexible response to the pandemic, staff redeployment, and a three-wave plan to increase capacity and manage demand.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 The Department for Work and Pensions (the department) has demonstrated how it can respond flexibly at short notice and will draw on the learning from this experience in the event of any further surge in benefit claims or events of this type. 1.3 The department’s response to the pandemic was swift and successful. Approximately 10,000 staff were reassigned, with new claims prioritised, all in short order. In addition, new staff were recruited, and estate expanded. All this strengthened capability and left the department better placed to address any second surge. 1.4 The department has implemented a three-wave plan covering the period to the end of 2020-21. The plan has served as a framework for guiding the response to COVID-19 pandemic and resolving ongoing supply and demand challenges. The department is currently in wave three which focusses upon increasing the department’s labour market offer through increasing work coach capacity, estates capacity and external provision. 1.5 In the event of a second surge, the department would look to utilise the type of re-deployment options that worked so well in the early months of the pandemic. This could include increasing the size of the Virtual Service Centre which was developed as a response to COVID-19 in order to increase service delivery by way of staff redeployment, via internal staffing moves and outsourcing support, and increasing staffing on priority call lines. 1.6 The department would also draw on its analysis of the way different COVID-19 related relaxations of standard processes impacted fraud and error. Utilising this knowledge will help the department strike a balance between identity verification and claim clearance, should volumes dramatically increase.
Source
Committee
Public Accounts Committee
Report
Twenty-Sixth Report - Department of Work and Pensions Accounts 2019-20
18 Nov 2020
HC 681
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.7 yrs
Report published
18 Nov 2020