Annex
Memorandum of Understanding Between the
Department of Social Security and the Inland Revenue
FOREWORD
The Inland Revenue and the Department of Social
Security have a history of successful joint working. The transfers
of responsibility for National Insurance Contributions and other
functions of the former Contributions Agency, and the development
of tax credits, give the opportunity to build on that success
and develop a more integrated approach to service delivery. Effective
working across Departmental boundaries is an important step in
modernising government and improving public services.
INTRODUCTION
This Memorandum sets out the understanding of
the Inland Revenue (IR) and the Department of Social Security
(DSS) of the responsibilities, principles, and working
practices that underlie relations between them.
This document is not a binding agreement or
contract. It is a statement of intent designed to guide officials
and support the development of detailed working arrangements.
RESPONSIBILITY
The functions of each Department are set out
in legislation. In particular, functions transferred from DSS
to IR are detailed in the Social Security Contributions (Transfer
of Functions etc) Act 1999 and secondary legislation made under
that Act. Subsequent legislation[39]
may alter Departmental functions.
Ministers will continue to be accountable to
Parliament for the full range of their own Department's responsibilities.
Officials have made detailed arrangements to support Ministers
in interdepartmental matters. These arrangements are set out in
separate working documents. Key arrangements are summarised below.
PRINCIPLES
DSS and IR are committed to the following guiding
principles for working together:
— a shared focus on providing an effective
and efficient public service;
— the maintenance of key relationships
in a flexible way;
— an open and inclusive dialogue on
strategic and key corporate issues;
— a co-operative approach to settling
issues of roles and responsibilities; and
— a transparent relationship which
works effectively at all levels to meet the Departments' varied
and changing needs.
DSS and IR aim jointly to:
— enable each Department to deliver
its business effectively in support of Ministers' objectives;
— enable each Department's Accounting
Officer to be properly accountable; and
— enable both Departments to play a
co-ordinated and appropriate part in the delivery of policies
across Departmental boundaries.
WORKING PRACTICES
Responsibilities to Parliament
Ministers recognise the need for co-operation
between their two Departments to provide Parliament with full,
accurate and timely information. The two Departments are committed
to working together wherever necessary on Parliamentary business.
As now, Parliamentary matters will be handled by the Department
with the lead responsibility, with the appropriate involvement
of the other Department on matters of mutual interest.
Correspondence
Similar principles apply to the handling of
correspondence as to the handling of Parliamentary business. Each
Department undertakes to involve and support the other as appropriate.
Resource framework
The two Departments have agreed a resource framework
within which changes in policy, processes or procedures with resource
implications will be discussed and agreed between them.
Providing services
IR and DSS are committed to working closely
together to achieve their shared objectives. This requires the
provision of a number of services for each other, including the
provision of operational and policy advice, the disclosure of
information necessary to fulfil statutory functions as permitted
by legislation, the provision of support services such as IT and
accommodation and other matters. Supporting agreements describe
the services provided.
Consultation and policy development
To achieve the aims of this Memorandum, the
two Departments recognise the need to keep in close touch with
each other on matters of common interest, or where one Department's
work may have a bearing on the responsibilities of the other.
Each will keep the other appropriately informed about relevant
developments and give appropriate consideration to the views of
the other Department.
Monitoring, evaluation and review
The Permanent Secretary and the Chairman will
review the overall progress and effectiveness of the relationship,
and its supporting documentation, at least annually.
29 March 1999
39 At the time of drafting the Tax Credits Bill was
before Parliament. Back
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