Select Committee on Social Security Minutes of Evidence


Examination of Witnesses (Questions 160 - 179)

MONDAY 17 MAY 1999

MR RICHARD EXELL, MS PAT HAWKES, MR FRANK BONNER, MR ALAN CHURCHARD AND MR KEITH WYLIE

  160. Pat Hawkes, would you like to say something?
  (Ms Hawkes) Thank you, Chairman. We have made a submission on behalf of disabled people, because we realise there are sensitivities. For example, we must make it a priority with the Gateway that it is accessible, that there is communication support as well as accessible buildings. It is obvious but it does need to be said. What is more, anyone who is claiming at the moment must be able to trust the people giving them the advice about their employment because it is a double edged sword for them. On the one hand it might be they have got to be reassured about their benefit entitlement and yet they are being asked "can they work?" One must consider these sensitivities we believe. We are pretty confident that the person skills, like listening and sensitivity, will be brought into the training but very specifically for people who are vulnerable and yet would perhaps wish to be included fairly in the Gateway. We want those considerations brought on board, please.

  161. Turning to the PCS, is there any view about the choice of location of the sites in terms of being able to get an assessment that would be easily translatable to other parts of the country? Are these sites the right ones, do you believe?
  (Mr Churchard) I think they were chosen primarily because they were not sites which were complicated by other changes that were taking place within the benefits system, so in a sense you could isolate those sites from other factors which might distort the results. We are broadly content with the distribution of them. It would have been ideal if we had a better mix of perhaps local authorities and until the recent elections it was quite difficult to find a broad mix of local authorities that were representative. By and large I think we are quite content with the broad pattern of choice.

Mr Dismore

  162. Can I follow on from where you left off and that is looking at call centres. PCS mentioned in their memorandum that you have got examples of call centres working well and not working well. Perhaps you could give us some further information about what works and what does not?
  (Mr Wylie) Our main concern on call centres is that they are remote from where people are making their claim and if claimants are ringing for information or ringing to register or calling to lodge an application for benefit they should be able to speak to somebody who is close by. One of the problems we have seen in the Benefits Agency is the problem of remote processing where people in north London are making applications via the central processing unit up in Glasgow. We find that a problem because we would prefer to see local processing and integrated local offices there so that individuals can go along and speak to the people there.

  163. We have been to Glasgow. I have a north London constituency, although it is not covered by Glasgow. I know the feedback. Certainly the impression I got from visiting Glasgow was that the staff are very enthusiastic about it and had a very "can do" approach to it and seemed to think that the recipients of the service, although it was a lone parent service that we were looking at, were very happy about what was going on. I have not heard any negative feedback from constituents about it.
  (Mr Wylie) That is right, but to the extent that the Single Work-Focused Gateway pilots are operating, they will all be dealt with on a local basis and all of the basic models will be dealt with locally.
  (Mr Bonner) I could give an example. The Employment Service is running, still as a pilot, this ES direct service which is in the locality. One of the great advantages of that—and we have to put it in the context of what we are doing—is that you have people who not only are easily contacted by the people using the service locally but who have a lot of local knowledge of the local labour markets and those sort of things are important. By having a lot of small call centres around the country and keeping the numbers manageable you can move with changes in the market very quickly, whereas part of the problem, it seems to us, with the big national type of call centre is it is a bit of an ocean liner, i.e. when you want to shift it takes quite a long time to do so. So the model of local call centres seems to us to be one that works well in terms of dealing with benefit claimants and jobseekers.

  164. Does that not defeat the object of the exercise to some extent? From what I saw in Glasgow, one of the benefits was that you had a relatively small number of staff who were very skilled in their area of work and who, because of the volume of calls they were dealing with, were able to make maximum use of their skills and training, whereas if you are working at a local level the number of claimants you may have dealing with that subject may not be sufficient to enable them to make either full use of their skills or to maintain their skills because they would not be using them so often and, indeed, they would have to have a much broader spread, which comes back to one of the criticisms that was being made earlier on.
  (Mr Bonner) Certainly just dealing with JSA claimants, which is all the Employment Service Direct is, it is certainly generating more than enough telephone traffic to have people fully utilised and fully using their skills. In terms of the Single Work-Focused Gateway we are bringing in another 20 per cent of people. I would expect that it would be capable of being fully utilised, but again that is a pilot and I suppose we will see what we will see.
  (Mr Wylie) The additional problem is that the claims being taken by our members in Glasgow were being taken from people in Ealing and Acton and they were talking to the staff in Glasgow about their claim, but when the Personal Adviser interview was taking place, of course it was the people from Ealing and Acton that were carrying out those interviews with the claimants, not people from Glasgow.

  165. We also spoke to people from the Ealing and Acton Benefits Agency in Glasgow while we were there and they seemed to think it was working quite well. Do you disagree?
  (Mr Wylie) We do not think that it did not work well. We would prefer to see a system where benefits were processed locally, where advice was available locally and where the staff taking the claims were available to meet the claimants locally.

Kali Mountford

  166. My own constituency is going to be involved in a call centre pilot and while I think there would be 650 call centres if it was left to MPs because we could see the jobs that might come to our constituents from it, the unions locally each have different views about the advantages and disadvantages, especially across the different departments and about how they think it might affect their members. UNISON, in particular, who do not have the same Civil Service background perhaps, are anxious about this. How do you think we ought to evaluate how a call centre could be successful given that we are bringing together three very distinct organisations with sets of values into a call centre where really quite different skills which might be present in all of those areas could be put to good use for the public?
  (Mr Churchard) I think it is a tricky question. I am not sure what the answer is. I think part of the problem in terms of whether people fear call centres or welcome them is that it is a single term which covers a broad range of actual situations on the ground. We are talking here about call centres in this pilot of 35 to 40 people which is quite different from having hundreds of people in an enormous hangar style call centre that my colleague was referring to earlier that typically are used by banks and other financial institutions. I think our members would probably welcome being able to work in a call centre of that kind of size. I think it creates the kind of set of circumstances in which you will not get a lot of the problems that you do get with the bigger ones. The main problem there is the turnover because the working conditions are so repetitive and the pace is so enormous that there are enormous difficulties keeping staff. I think on the scale that this pilot has been devised it is probably going to be quite workable. I do not think there are going to be any major difficulties. I think we should also say that I think, as a union, we do agree with enabling members of the public to have as many different ways of access to services as we can. We should offer them a choice. We should not say, "You have got to get the bus to the high street". If it suits you to use your personal computer at home or use the telephone, that is something we are broadly in favour of. We have not got a problem with call centres as part of the pilot exercise. On the scale in which they are being talked about, i.e. 35 to 40 people, I think they would be quite manageable.

Mr Dismore

  167. Could I ask you about the private and voluntary sector issues because I know that the trade unions have used objections to those possibilities. To what extent are your objections based on the trade union argument, in other words looking after the interests of your members which is quite a legitimate objective for you to do as trade unions, and to what extent are your objections based on the service delivery aspect and the recipient point of view?
  (Mr Churchard) It is two-fold: we think in the Civil Service we do a very good job by and large and we think our members can deliver this Gateway service as well as or better than other institutions. I think we have the evidence of the New Deal to support that contention and evidence across a wide period of time over the adaptability of civil servants to changing circumstances. Secondly, we have the practical evidence of what has been happening in recent times in terms of private contractors. We have covered the points in our written evidence. We refer to cases where private sector involvement currently in the New Deal is by and large below average and in many cases pretty poor. So I think it is a combination of the two. I know you would expect us to say that, wouldn't you, because it is our members' jobs that are at stake here, but we genuinely do believe we can provide the best service and we are very keen to demonstrate that is the case.

  168. How do your members perceive it at local level, what information is coming back about experience locally? Do your members at the local level share those views or do they have a different approach to it?
  (Mr Wylie) Members at local level do not want to work for the private sector, it is quite simple. Especially in the Benefits Agency where they have seen a number of privatisations over the past few years, their experience is that the private sector is a poorer employer than the Benefits Agency and the Civil Service. Their purely selfish point of view is "I do not want to work for the private sector".

  169. Their objections will be based on the trade union argument, ie representing your members rather than on the service side. I have to say that is a fair point of view.
  (Mr Wylie) We have also seen a break down in the standard of service that we can provide where privatisations have taken place. We have seen where with the privatisation of estate management in DSS to Trillium the level of service being provided has been getting worse and worse. Recently the Accommodation and Office Services were contracted out to Trillium and to Group 4 and in the first six weeks of that contract there have been masses of complaints from our members trying to deliver the service in local offices and they are finding it almost impossible to do so because of the service provided to them by sub-contractors. It is not just about terms and conditions, it is about the service that they would like to provide to the public.

Judy Mallaber

  170. At a local level my constituency is partly involved in the private sector variant. Are you being consulted at all on the design of the scheme and the bits that are being put forward or is it just something that you have got no involvement in at all?
  (Mr Bonner) We are being consulted in so far as it is possible to be consulted in something that is shifting along at this particular pace. There are some quite severe limitations in terms of consultation about the design of the private sector variant in the sense that there are limitations by commercial confidentiality. Also the nature of what is being asked of the private sector is a very open specification, if you like, so perhaps unlike in other areas it is difficult to look at it and say "yes, we shall review here or review there". They are really being given a wide choice of what they can do. Again that limits what consultation is possible. One of the results of such a wide remit being given to the private sector is that many of our members, and I had a meeting with members in Leeds recently, feel almost insulted: "does this mean that the view of the Government is that we cannot do the job?" There is quite a strong view there because they do not believe that they cannot do the job.

  Chairman: We have two important sets of further questions we would like to try and squeeze in with your help and I think we can do that in injury time without impinging too much on the next session.

Mr Keetch

  171. Following on from what you have just said, Frank, some of us saw in Australia just how difficult this is to deliver in the huge jungle of benefits that exist. The Government is adopting a two-stage approach, the R&O and then we go on to the Work-Focused Gateway. Question one: for those of your clients who have not been on JSA interviews, how strange is it going to be for them to go from RO to then a Work-Focused interview?
  (Mr Wylie) It is going to be different, I do not know how difficult it is going to be. It is something that most of the client group that we are used to dealing with at the Benefits Agency will not be used to. As to how difficult it is going to be, part of the object of the pilot is to test that and to see how difficult it actually is. It is something that will be very difficult and something that claimants will take some getting used to, which is one of the reasons why in our document we expressed some concern about the element of compulsion in the interviews and why we believe that may not be the most appropriate way forward.

  172. You think that compulsion is a serious problem that will relate to that?
  (Mr Wylie) We think it has got the potential for being a problem. If the Gateway project is as good as the Government would like it to be and is providing a quality service to the claimants and providing quality counselling and quality advice then there should be no need for it to be compulsory and I think people would choose to take the option of the Single Work-Focused Gateway interview. I think we saw again with the lone parent prototype that the vast majority of people who were offered the opportunity of the interview took that opportunity up. If the Gateway is as good as we would all like it to be then there should be no need for compulsion.

  173. Then just following on the point my colleague, John Healey, started to go down earlier, this problem of being able to understand and to appreciate the huge variety of benefits. As I say, we saw in Australia that this was incredibly difficult where clients were coming up, they were being interviewed and then there was an attempt at an assessment made and then advice given. This is a huge area and, without in any way trying to suggest that your members could not do this, is this simply going to be possible?
  (Mr Churchard) I think what happened in Australia—and you may know more than I do and you may correct me—was that there was an enormous organisational change in which the different agencies were all stitched together. An attempt was made to stitch them all together a year, 18 months ago into one single organisational unit and then within a month or two the whole thing had to be unstitched because it was just too complex. What is happening here is that we are taking it a step at a time, are we not, we are doing pilots, we are going to learn some lessons from those pilots, and even after the pilots the objective is not to bring together into a single organisational unit all the different agencies that are currently there, the emphasis is on getting those agencies to co-operate with each other and have the IT links and all the rest of it to enable them to exchange information. No-one is talking at the moment about trying to weld together in one single organisation the different agencies that currently deal with clients' problems. I think the situations are somewhat different. I do not think we should necessarily look at the Australian experience and say that inevitably the same will happen here.

  174. We are trying to weld together at the initial stage, at the R&O stage and Work-Focused, an individual to give that level of advice.
  (Mr Bonner) I think it is fair to say this has been tried before, has it not, and has not worked. Equally the fact that it has not worked in the past does not invalidate an attempt to make it work later on. There are lessons to be learned that only the pilots will allow us to learn about how much an individual can handle all of this. The reality of it, and this certainly appears to be the case within the planning, is that we are talking about teams of people working together with a single face to the client, as it were, with that adviser having a team of people behind them providing support on the range of benefits and all the rest of it. I suspect that is going to prove to be necessary. Certainly from the PCS's point of view the idea of a single point of contact and of individual Personal Advisers are ideas that we strongly support. Providing we can make the back office, if you like, work properly then it will provide a better level of support people. The pilots are going to have to tell us whether we can make the back office stuff work.

Dr Naysmith

  175. What do you mean when you say that it has been tried before? Are you suggesting that everything that is in this new package has been tried before?
  (Mr Bonner) No, no.

  176. What is it that has been tried before?
  (Mr Bonner) The one-stop shop approach was tried on the JSA, which Richard has referred to, which in practice did not work for a variety of organisational reasons. Going back before my time, there were some attempts in the late 1980s to look at a one-stop approach.

  177. This is more than just a one-stop approach.
  (Mr Bonner) Absolutely, but in terms of the claimants, from their point of view one of the big differences they will see if it all works is a one-stop approach where they can go somewhere and that will be it.

Ms Atherton

  178. Very much on that theme, for some of us the pilots offer a possible vision of how a much more extended one-stop shop for all forms of Government might be the interface between Government, local and central, and the citizen, the person on the street. We have talked very specifically about the pilots that are taking place. Can I ask you to step back both as representatives of your members and also as your members providing a service and say if the technology was in there, which is very different now at the end of the 1990s to what it was in the 1980s, if the preparation took place, how would your members perceive a one-stop shop for all relationships with the customer, the citizen, or would they find it very threatening or an opportunity? A swot analysis, a quick swot analysis.
  (Mr Churchard) A one-stop shop for all their relations with the system. Your question goes far beyond what we are talking about here.

  179. We appreciate that. But for many of us that is what we are interested in.
  (Mr Churchard) My view would be that we should take it one step at a time. You have already heard about the experience in Australia and I think we have got examples in the past from the Civil Service and elsewhere of trying to introduce radical change at a pace which is not sustainable. I think we have an opportunity here to see whether it can work within a specific context and if it can be then those positive lessons can be built upon and the thing can be extended. I certainly would counsel against any idea of going for some kind of big bang approach, trying to link together all the services for which the citizen may need to call upon the state or local government to provide. I think that is some way off. You could learn important lessons from this and if it is successful then it can be built upon.


 
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