Select Committee on Social Security Minutes of Evidence


Memorandum submitted by the War Pensions Agency (WPA 8)

EXECUTIVE SUMMARY

  The War Pensions Agency (WPA) is an Executive Agency of the Department of Social Security (DSS) and was launched in April 1994. It is responsible for the administration of the War Pensions Scheme.

  The Agency was established with a remit to deliver a consistent, efficient and effective service for the assessment and payment of war disablement and war widows pensions and to provide welfare support when needed to war pensioners, war widows and their dependants and carers.

  In meeting that remit, the Agency has a declared purpose to work in partnership with other organisations and to deliver the War Pensions Scheme through a modernised and high quality customer focused service. The Agency Business Plan for 1999-2000 describes What the Agency has to deliver in the next year in terms of priorities and targets. It also describes the Agency values which reflect the culture and behaviour of the organisation in How the Agency goes about its day to day business to meet its targets.

  The Agency recognises that it has a part to play in a wider context to support Government and Departmental priorities and it is committed to further improvements in service delivery. We have consulted and listened to those who receive war pensions and their representatives and we will continue to tailor our services and targets to ensure that war pensioners and war widows receive the best quality and most efficient services, consistent with Government and Departmental priorities.

  Our key priorities for 1999-2000 are:

    —  To improve significantly the decision making and appeals process for war pensioners and war widows, in accordance with the law and in keeping with the principles of Service First, whilst ensuring that we continually strive to improve the quality of our service.

    —  To work co-operatively across departmental boundaries, particularly with the Ministry of Defence, Lord Chancellor's Department and the Court Service, to meet the Government's wider objectives for "joined up" government and to ensure positive outcomes for our customers.

    —  To further develop our constructive partnerships with ex-service organisations to ensure that war pensioners and war widows receive high quality welfare advice and support.

    —  To manage change successfully so that we deliver our business objectives in line with the principles of Welfare Reform, the Modernisation programme and the needs of our war pensioners and war widows.

    —  To ensure the Agency continues to function effectively in the run-up to, through and beyond the Millennium Date Change.

    —  To support our operational priorities, by ensuring our staff are well informed, trained, motivated and provided with the most appropriate opportunities to deliver their full potential to underpin the continual improvement of our service.

    —  To manage budgets efficiently and effectively, maintaining a sound financial regime with appropriate controls and financial arrangements.

    —  To provide a high standard of residential and nursing care at Ilford Park Polish Home.

SECTION 1—INTRODUCTION

  1.1 The War Pensions Agency was established as an Executive Agency of the Department of Social Security in 1994. It was formed from the War Pensions Directorate of the BenefIts Agency and it is responsible for the administration and delivery of war disablement and war widows pensions and for providing welfare support to war disablement pensioners, war widows and their dependents and carers.

Background

  1.2 State provision for war pensions dates back to the reign of Queen Elizabeth I when the first formal scheme for war pensioners was established under Acts of Parliament passed to make provision for those "in the Service of Her Majesty and of the State" who were maimed or incapacitated.

  1.3 There was little change to the original provisions for those injured in conflicts until the First World War. The number of casualties from the Great War highlighted the fact that the arrangements for the administration and payment of war pensions were inadequate. In 1916, a Parliamentary Select Committee recommended that the existing pension provisions should be incorporated into one War Pensions Scheme administered by a new Department. In 1917 the Ministry of Pensions was established which was later to become part of the Department of Social Security. In 1992, it was decided that war pensions should be administered by a separate Executive Agency within the DSS and in April 1994, the War Pensions Agency was formally launched.

  1.4 The Agency administers the War Pensions Scheme for over 320,000 war pensioners and war widows both in the UK and the Republic of Ireland and in over one hundred countries throughout the world. It also provides welfare support through a local network of field based caseworkers and it manages the Ilford Park Polish Home, a purpose built residential care and nursing home in Newton Abbot, Devon, established under the 1947 Polish Resettlement Act.

  1.5 The Agency's Framework Document describes its aims as delivering a consistent, efficient and effective service for the assessment and payment of war disablement and war widows pensions and to provide welfare support when needed to war pensioners, war widows their dependents and their carers.

  1.6 The Business Plan for 1999-2000 puts these aims into the current context and describes the War Pensions Agency purpose as working in partnership with other organisations to deliver the war pensions scheme through a modernised and high quality customer focused service.

Central Advisory Committee

  1.7 In 1921, legislation was passed to introduce a Central Advisory Committee (CAC) on War Pensions. The Committee is chaired by the Minister with special responsibility for war pensions. The membership is drawn from Chairmen of the War Pension Committees, ex-servicemen, representatives of ex-service organisations and Departmental officials. The Committee provides advice to the Minister with special responsibility for war pensions, on matters affecting disabled ex-servicemen and women and their dependents. The Chief Executive of the Agency also attends the meetings and presents a paper reporting Agency activity. A list of the current CAC members is at Annex A.

War Pension Committees

  1.8 There are 29 War Pension Committees (WPCs) throughout the United Kingdom. Each Committee consists of 30 voluntary members drawn from the local community. Each Committee is reconstituted every five years and meetings take place approximately four times a year. In addition, there is a War Pensions Advisory Committee in the Irish Republic which operates along the same lines as the WPC. The WPCs provide valuable assistance to the Welfare Service in looking after the welfare of war pensioners and war widows in their area. They advise the Agency, the Department and Ministers; they hear complaints; and they make recommendations to the Agency on specific cases. The Agency provides secretarial and administrative support to the WPCs and values their experience and independent view. The role of the WPCs and their locations is shown at Annex B.

Role of the Chief Executive

  1.9 The Secretary of State appoints a Chief Executive, defines the scope of the Agency's activities, agrees its objectives and annual Business Plan and sets its annual performance targets and resources. The Chief Executive is accountable to the Secretary of State for managing the day to day running of the Agency and is principal adviser on these matters. He is responsible for meeting the Agency's targets, service standards and objectives within allocated resources. A periodic review of the Agency's performance is held by the Permanent Secretary as the Department's Principal Accounting Officer.

Current Organisation

  1.10 There are around 900 staff employed by the Agency. The organisation consists of:

    —  Central Operations—based in Norcross, on the Fylde coast, and responsible for the assessment, awarding and payment of war disablement and war widows' pensions and related allowances, the processing of appeals cases and the provision of corporate services and support functions.

    —  War Pensioners' Welfare Service—a nationwide network of offices in the UK and Eire, essentially providing field based caseworkers. The Service gives advice, information and assistance on any matter which concerns war pensioners and widows.

    —  Ilford Park Polish Home—a residential care and nursing home for elderly Polish people near Newton Abbot, Devon. The original purpose of the home was to settle Polish ex-service men and women and their dependents, who had served under British command during WWII, into a new life in this country.

  1.11 It was recognised during 1997-98, that there were significant reductions in the claims intake and a consequent reduction was made in the Agency's staffing resources, the reduction being achieved through a voluntary retirement scheme in March 1998. The review of staffing requirements to match workloads ensured that existing overhead and support functions were subject to scrutiny and appropriate reductions were made in these areas. This also provided an opportunity for some internal restructuring to better group some key functions such as aligning Operations with IT support and training and to group business support and assurance, all with effect from April 1998. These changes were intended to be achieved without any adverse effect on the standard of service. That this was achieved, is confimed by the fact that the Agency re-gained the Charter Mark during 1998-99.

  1.12 Statistical forecasts indicate a continuing trend of reductions in claims and appeals which requires staffing resources to be kept under review.

War Pensioners' Welfare Service

  1.13 The War Pensioners' Welfare Service (WPWS) was set up in 1948 when it was deemed that the responsibilities of the Ministry of Pensions did not cease with the award of a war pension. Welfare Officers were appointed to offer practical help with problems experienced by war pensioners. They provide a professional and confidential visiting service. Advice days and surgeries are held throughout the country.

  1.14 The WPWS provides a valued service and works closely in partnership with ex-service and voluntary organisations. It also supports the War Pension Committees and has modernised its role, responding to provide support before and following significant life events and establishing field-based caseworkers and personal advisers, thus providing a gateway to a range of services for war pensioners and war widows.

Ilford Park Polish Home

  1.15 Ilford Park Polish Home (IPPH) is a residential care and nursing home, managed by the Agency under the terms of the Polish Resettlement Act 1947. The Home first opened in 1948 to resettle members of the Polish Forces into a new life in Great Britain. Over the years, it has evolved into a residential care and nursing home for elderly Poles and through the efforts of the management and staff, has retained a strong sense of community and commitment to Polish values and traditions.

  1.16 Over the course of the year, the average occupancy rate in the Home has been 95 per cent. However, it is recognised that this will be increasingly difficult to maintain in the long term because of the diminishing pool of potential residents and their increasing average age, which is now over eighty. The Prior Options Review of the Agency is expected to examine this issue.

Ministry of Defence

  1.17 The Agency depends on the Ministry of Defence (MoD), to provide certain service evidence and medical records under the terms of a Memorandum of Understanding which commits the MOD to a turnaround time of 20 working days for disablement claims and 10 working days for widows claims.

Ex-Service Organisations

  1.18 The value of working in partnership with ex-service organisations, the MoD and Pensions Appeal Tribunals (PAT) has already been acknowledged and we will continue to give priority to developing effective relationships. The Agency has pursued an active policy of strengthening links with ex-service organisations via both formal and informal avenues—specific initiatives have included consulting customers/interest groups about proposed changes. Additionally, the Chief Executive regularly visits the organisations and key individuals to address issues and to identify further areas for improvement. The law allows certain organisations to act as Agents for the Agency in taking claims and a Memorandum of Understanding has formalised this arrangement. A list of the ex-service organisations that we deal with most regularly, including the authorised agents, is shown at Annex C.

Prior Options Review

  1.19 As a Next Steps Executive Agency, the War Pensions Agency is required to undertake a Prior Options Review of its Framework Agreement every three to five years. Standard practice is to examine the available options prior to assessing the continuing need for an agency. Typically, these are to consider if there is scope for whether; the function can be abolished, privatised, contractorised or carried out by another agency.

  1.20 As the Agency was launched in 1994, it is currently subject to the first of these reviews to examine the available options for administering the war pensions scheme for the next five years. The results of the review will be announced in Autumn 1999 after Ministers have agreed the findings.

SECTION 2—WAR PENSIONS POLICY

  2.1 The main business of the Agency is the assessment and payment of war disablement and war widow's pensions. The principal legislation on which these payments are based is the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order (SPO) 1983. Details of the main Scheme and legislation covering the other Schemes dealt with by the Agency are included at Annex D.

  2.2 Policy matters are the responsibility of the Department's Policy Group. Close relations between the Agency and Policy Group are maintained through regular, formal meetings, together with colleagues from the Analytical Services Division, Solicitors Branch and the Department's Planning and Finance Division and through regular close liaison at all levels.

  2.3 The legislation governing war pensions allows the scheme to be administered in such a way as to take account of emerging changes in medical/scientific understanding as and when they arise. Scientific developments, which might affect war pensions entitlement are monitored by the regular examination of current literature and through consultation with experts in particular fields.

Special Sections

  2.4 Special sections have been created to deal with the more complex and sensitive cases such as Far Eastern Prisoners of War, the Ulster Defence Regiment, Mercantile Mariners, Civilian Internees and others including Gulf War cases to ensure consistent treatment and service as well as the development of expertise by staff in those areas. Cases dealt with in these areas tend to be more complex than normal claims and require special attention. To ensure uniformity in approach and to enhance customer service, a Gulf War Liaison Officer is fully engaged in dealing with difficult cases.

Gulf War Cases

  2.5 Recently published research compares the health of Gulf servicemen with men who had served around the same dates but had not gone to the Gulf and with a third group of men who had served in Bosnia. The study found the same multiple non-specific symptoms and disorders in all 3 groups. The difference was that the rate of ill-health was higher in the Gulf servicemen. These findings are not supportive of a unique Gulf illness but suggest that adverse health effects may be associated with different types of service experience. The results confirm that war pensions certification practice for Gulf claims is in line with current medical understanding. All disablement causally linked to service, under the legislation relevant to the claim is accepted, but not using the term Gulf War Syndrome.

Noise Induced Sensorineural Hearing Loss

  2.6 Under the War Pensions Scheme, a war disablement pension may only be paid for disablement which is due to service. A pension cannot be paid for hearing loss which is due to other causes such as ageing. In December 1996, the approach to the assessment of Noise Induced Sensorineural Hearing Loss (NISHL) was changed to ensure it was in line with current medical understanding of that condition which was that NISHL does not increase with time after removal from the noise. Pensions for NISHL were thus no longer increased as overall hearing loss increased with age.

  2.7 A review of the scientific basis for the Department's approach to the assessment of NISHL in war pensions was carried out in 1998. The review team of experts chaired by the Government Chief Medical Officer, confirmed unanimously that hearing loss due to noise does not deteriorate after removal from that noise and existing hearing loss caused by noise does not increase as age-related loss is added to it. This decision confirmed that the Agency's assessment of NISHL was correct within the context of existing war pensions legislation. The Review Team also recommended the matter be looked at again in one year's time. Baroness Hollis agreed the recommendation and asked the war pensions Medical Policy Advisor to report to her by the end of February 1999 on any relevant developments.

  2.8 The report of this further review was placed in the libraries of the House of Commons and the House of Lords on Tuesday 2 March 1999 and copied to the members of the CAC and the Chairmen of the WPCs. The findings of the review confirm that no new medical or scientific evidence has arisen since March 1998 which would affect the DSS approach to the assessment of hearing loss on war pensions so as to allow for an assessment for NISHL to be increased as overall hearing loss worsens with age. The Department remains open to new information and will consider any future evidence which may provide a further insight into the aetiology of any particular condition.

Ministry of Defence/Department of Social Security Joint Review of Compensation

  2.9 On 8 December 1998,[1] Dr Reid then Minister of State for the Armed Forces, announced a comprehensive review of compensation arrangements for service personnel. The Agency is working closely with colleagues in Policy Group and the MoD to consider whether it is possible to introduce a new compensation scheme to replace the current complex arrangements.

  2.10 The existing war pensions scheme will continue to be available to all those who have already left the Forces. Once the joint review has progressed, there will be full consultation on the findings, providing an opportunity for discussion of any proposals.

SECTION 3—PERFORMANCE TARGETS

Performance against Secretary of State (SoS) Targets for 1998-99

  3.1 Performance against the 1998-99 Secretary of State targets for the month ending February 1999 is detailed at Annex E.

SoS Targets for 1999-2000

  3.2 The context in which the Agency will operate in the coming year requires changes in the way in which performance is measured. The SoS has set targets which are focused on achieving the aims of the Government and Departmental agendas but which also seek to considerably improve Agency performance. The targets provide stakeholders, customers and partners with meaningful measures of how successful the Agency has been in achieving objectives and in meeting priorities. Our targets have been set out in terms of the priority areas for the coming year and are detailed in Annex F. The following section provides background narrative as to how the targets have been framed.

Putting Service First

  3.3 The Agency has been awarded the Charter Mark and we aim to adhere to principles of the Government's Service First programme. It is this initiative that embodies the Agency's focus on Putting Service First. Additionally, the quality target measures whether the decision is correct and the resulting payment is accurate.

    Service First Target

    To deliver a first class service to war pensioners and war widows by achieving the standards set in the Agency's Service First Principles (see Annex H).

    Quality Target

    For 90 per cent of all claims to meet the quality criteria.

Working in Partnerships

  3.4 In response to feedback from our clients, the Agency is seeking to improve the "end to end" decision making and appeals process with a view to making significant improvements to clearance times, notifications and outcomes.

    Appeal Target

    To agree improvements in the end to end Decision Making and Appeals process with the Agency and the Pensions Appeal Tribunal to reduce the overall time taken for clearance of decisions and appeals, to improve notifications and the subsequent implementation of decisions together with improved monitoring and meaningful targets.

Managing Change

  3.5 There are arrangements to evaluate the performance of each Agency on a three to five yearly cycle by conducting a Prior Options Review. As WPA came into effect on 1 April 1994, this is the first review. The purpose of the review is to assess the performance of the Agency against its initial objectives and to make recommendations for the future delivery of war pensions which provide value for money, increased efficiency and contribute to "joined up" government.

    Prior Options Target

    To implement the proposals approved by the SoS, from the Prior Options Review, to the agreed standards and timetable.

Valuing Our People

  3.6 The Government is committed to reducing sick absence levels in the public sector and this is reflected in the PSA published by all government departments. The DSS is also attempting to devise a Staffing Index with each of its executive agencies which will provide an objective measure of how efficient staff resources have been used. Work is ongoing within the Agency to compile a staffing index which will contribute to the Departmental initiative.

  3.7 The WPA recognises that to reduce sickness levels we need a range of measures to monitor sickness absence, to contact absent staff and to arrange "back to work" interviews. In addition, we aim to provide an environment that encourages, supports and values people. We will also focus on our leadership and communications as they have a significant role to play in managing attendance.

    Valuing our People Target

    To work with the department in developing a staffing index and to reduce our sickness absence levels by 7 per cent during 1999-2000.

Improving Efficiency

  3.8 To ensure that we continue to make best use of public funds, the Department is developing a mechanism for monitoring and measuring how effective it has been in providing an efficient service. Tight controls over public expenditure mean the Agency must look for more efficient ways of delivering its services whilst accepting that efficiencies can often be ploughed back into service improvements.

    Efficiency Index Targets

    To agree with the Department the principles and baseline for the operation of Efficiency Indices and to commence pilot operations in 1999-2000

    To generate efficiencies during 1999-2000 that will enable WPA to absorb the impact of financial pressures equivalent to 4 per cent of running costs.

Management Targets 1999-2000

  3.9 To supplement the SoS targets, the Agency Management team has set a range of demanding internal targets to ensure that claims and appeals are processed promptly and quickly in accordance with the feedback from consultation with customers and their representatives. The relevant management targets are detailed at Annex G.

SECTION 4 OUR VALUES

  4.1 The Agency will focus on aligning with the Government's modernisation programme whilst ensuring that our challenging objectives are achieved. In support of this commitment and recognising the special status of war pensioners and war widows, we have articulated five values to ensure our workforce, as well as those who we serve and those we work with, are clear about the culture and behaviour which we encourage.

  4.2 Our five values are as follows:

    —  Putting Service First;

    —  Working in Partnership;

    —  Managing Change;

    —  Valuing Our People;

    —  Improving Efficiency.

Putting Service First

  4.3 We value the service we provide to pensioners. In recognition of the quality and level of service already provided, we have again been awarded the Charter Mark Standard. We recognise that this sets a benchmark of achievement but still leaves scope for further improvement.

  4.4 Specific initiatives to be pursued in this context include:

    —  Further improvement of our notifications by providing Reasons for Decision—when we notify the outcome of a claim, at the same time we will issue easily understood reasons explaining how the decision was reached. We are also improving other notifications, especially "tick box" forms.

    —  An independent review of the overall end-to-end decision making and appeal process. This commenced in 1999 and includes the elements which involve the Pensions Appeal Tribunals and organisations representing appellants (such as the Royal British Legion and Royal Air Forces Association). From this, we expect to see improved processes, reduced timescales and more meaningful targets for the future which we aim to pilot and implement by April 2000.

    —  The continued development of the Welfare Service to ensure we adopt the role of Caseworkers and Personal Advisors to provide a responsive and personal approach, ensuring a Gateway to Services for war pensioners and war widows.

    —  The continued development of Business Continuity Plans which aim to ensure a seamless service in the event of major disruption. The plans use risk assessment techniques to identify the potential for disruption to payment systems, especially during the Millennium Date Change.

Working in Partnership

  4.5 We work in partnership with organisations such as the Ministry of Defence and the Lord Chancellor's Department when processing claims and appeals and we deliver welfare services in partnership with ex-service organisations. We aim to build upon this, where appropriate, by working more closely with other departments and agencies and with the voluntary and private sectors to provide a more streamlined service to our customers. In particular, we will:

    —  Work more closely with Pension Appeal Tribunal—to reduce the amount of time an appeal takes from initial intention to appeal, preparation of casework, awaiting hearing, through the actual appeal hearing and ultimately notifying the outcome and implementing any change.

    —  Focus on our relationships with the ex-service organisations and the MoD to make existing operations more effective. Particular aims are to ensure there is earlier involvement to support the widow when a serviceman dies in service and to identify training needs for those invalided from service.

Managing Change

  4.6 We recognise that we have to proactively manage an increasing level of change on a number of fronts; the trend of reducing workloads, a new Government agenda for modernisation, the Department's commitment to welfare reform under the Public Service Agreement, as well as technological advances which can modernise the way we work. Successful management of these changes will ensure that we achieve our objectives whilst handling inevitable change in a positive way. We will continue to co-ordinate and steer the changes through activities such as:

    —  Strengthening Leadership at all levels of management by ensuring commitment to a clear vision; by being visible and talking to staff on a regular basis, listening and acting on their input; by building trust and respect through being seen to be open, fair and honest, giving credit where it is due; and by acting quickly, fairly and consistently to address inappropriate behaviour.

    —  Improving Communication, ensuring that our communications will be clear, concise, targeted and delivered using the most appropriate medium and building on the communication strategy put in place during 1998-99. Improved communications will ensure that there is consistency in the messages across the Agency and make the reasons for change, and its likely impact, readily understandable and promote change in a positive manner throughout the Agency.

    —  Building on our Information Technology Framework, recognising that IT can be a powerful enabler for business and service improvements. We will roll out a programme of enhancements to modernise our IT infrastructure. These enhancements will ensure the Agency is ready for the Year 2000 and will also provide a platform for future change, allowing the Agency to be flexible and responsive to the Government and Department's objectives and to take advantage of evolving IT networks such as the Government Secure Intranet.

Valuing our People

  4.7 We are committed to providing an environment which encourages, supports and develops people, enabling them to achieve their potential. The Agency will continue to ensure staff development remains consistent with business aims and objectives. We will continue to demonstrate our commitment as an Investors in People accredited employer by:

    —  Offering Greater Career Development Opportunities — all staff will have an equal opportunity to add value to the Agency's performance through lateral and upward career development. Our service will be enhanced through a shared understanding and wider perspective of all aspects of the Agency's service delivery.

    —  Continuing to focus on our Training and Development — by technical training to underpin process changes as a result of improved technology and by developmental training, focusing on integrated team working and leadership skills.

    —  Proactively creating an environment to encourage innovation and the potential for individuals to Make a Difference. Also ensuring that the process to review performance is used effectively to ensure that there are lessons learnt which will benefit the Agency, war pensioners and war widows

    —  Undertaking a further Staff Attitude Survey to benchmark and measure progress on culture change and to show the positive effects of the steps taken as a result of the last survey to highlight future areas for improvement.

    —  Promoting health at work by developing a specific strategy and to reduce the level of sickness absence.

Improving Efficiency

  4.8 The Agency has a duty to provide value for money from public funds through established accounting procedures, Corporate Governance and business assurance. In particular we will:

    —  Meet the requirements of Corporate Governance across the range of Agency activities to ensure probity and integrity in everything we do and to demonstrate value for money and adherence to Government Accounting requirements.

    —  Through the implementation of Resource Accounting and Budgeting, ensure that public funds are better accounted for and that the effective use of funds is clearly demonstrated. At the same time, raising accounting standards will reduce the opportunity for fraud and error.

    —  Refine Project Management and Integrated Planning mechanisms to better coordinate the planning of the Agency's programme of work to aid the delivery of business objectives. An improved understanding and use of best project management controls, will lead to a more effective coordination of the Agency's work programme.

    —  Improve the Security and Integrity of our systems by conducting a programme of Information Technology system accreditation.


1   This was amended to 1997 during evidence. See Q101. Back


 
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