Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 120 - 128)

WEDNESDAY 4 FEBRUARY 1998

MR CHRIS THOMPSON AND MR GERRY KEENAN

  120.  Was that target too ambitious? Should you have set a more realistic target?
  (Mr Thompson)  The problem is that if we set a lower target it is what we aspire to, is a problem here. If we set a lower target then we are almost accepting that the level of debt is going to continue to increase.

  121.  But you would accept that obviously in a perfect world we would not have any over-payment, but recognising that it does occur, it is important that that money is recovered if the system is going to be held with some confidence then we have to recover those funds?
  (Mr Thompson)  I agree entirely and that is why we have set ourselves that target, although I believe that our real emphasis has to be on getting it right first time. That is where we really start to make in-roads on the level of debt outstanding.

  122.  Can I just speak briefly about regularity and propriety which means that money should be going to those areas that are written within the rules or within the law. I noticed that in 1995/96 the NIAO estimated that in ten per cent of new and renewal claims people were not receiving an award when they should have received one or it was felt that they should have received a reward. Similarly with reviews, two per cent were not receiving. That means that there are a large number of people who should be in receipt of DLA who are not currently getting it. What action are you taking to ensure that that does not happen?
  (Mr Thompson)  In the specific cases that the Audit Office found we reviewed those specific ones, but that does not cover the vast majority of the other cases.

  123.  But it does give a very strong indication that there are problems here and that there are people who are not receiving this benefit?
  (Mr Thompson)  The fact that most people who get rejected first time round go for review I think shows that we have the opportunity at that stage to pick up a very high percentage of cases second time round.

  124.  Can you give us any assurance of that? Do you believe that there are no cases out there of people who are not in receipt?
  (Mr Thompson)  I could not give you the assurance that there would be no people, but I do believe with the review and appeal mechanisms that are in place the likelihood of there being very significant numbers of people out there who are not getting the benefit and should be are perhaps much less than might be the case.

  125.  Can I then come back now to the original question which is a reflection of a number of contributions here today and it is about the future of self- assessment. I understand what you are saying about the previous experience from those benefits that preceded DLA, but this Report outlines in a whole series of ways the difficulties which really stem from the beginning of the process. You said that you were not questioning the principle of self-assessment but you did say it has a place in the process, which did intrigue me. You have already talked about amendments to the form to shorten it and hopefully simplify it. Are there any other ways that you are currently investigating of making the self-assessment system, if we do continue with it, more user-friendly so that we can overcome a great number of the problems that have been outlined today and are outlined in this Report?
  (Mr Thompson)  We do keep the form under review all of the time and improvements are issued regularly. I think that we can also work with organisations like Citizens Advice Bureaux and Disability Action in terms of working together more.

  126.  Can I perhaps give a lead to you. Have you given any consideration to any particular disabilities that may be very difficult to reflect accurately through a form and that therefore there may be certain categories of disability that are perfectly adequately dealt with by self-assessment and others that may be much more adequately and quickly dealt with by a medical examination?
  (Mr Thompson)  That could very well be. When I talked about there being a place in the system, that was the direction I was going. This is a matter for the policy-makers rather than for myself.

  127.  But you have to operate the system and in having to operate that system that has a big influence on the policy-makers and the way they draw this up. Is that a direction that you are moving in?
  (Mr Thompson)  I think that it makes a lot of sense.

Chairman

  128.  Thank you very much, Mr Love. Today's session has been an object lesson in the problems and hazards of introducing new and changing social security systems. We accept that. Changes to social security benefits are demanding and complex and it needs to be fully recognised in the planning introduction and in providing and training staff to administer them properly. Mr Thompson, I believe that you have been very straightforward with us today and I thank you for that. I am sure as a new Accounting Officer you are seeking to improve the system as it stands. However, it is not acceptable that the most disadvantaged in our society have their benefits determined on the sort of hit or miss basis that we have heard about today. Equally, the taxpayer has a right to expect that both fraud and over-payment of benefits are minimised. So I am going to put a question to you. I would like you, not today but in time, to think carefully about the comments made to you today and to provide this Committee with a note outlining your new targets, as particularly Mr Hope talked about, and benchmarks, a detailed plan of action to achieve those targets and a timetable for that plan and those targets. [4]I should tell you that this Committee will monitor that programme and monitor the achievements of that programme and if it is not met then we can look forward to a re-match! Is it possible for you to provide us with such a note?
  (Mr Thompson)  I think it is possible.

  Chairman:  Mr Thompson, thank you very much indeed for your evidence today.


4   Note: See Evidence, Appendix 1, page 17 (PAC 286). Back


 
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