Select Committee on Work and Pensions Minutes of Evidence


Examination of Witnesses (Questions 260-279)

9 FEBRUARY 2005

JANE KENNEDY, DR BARBARA BURFORD AND MR MARK FISHER

  Q260 Mrs Humble: Could I ask you one or two questions about the monitoring of DWP staff? We have had some statistics given to us that show that amongst the higher grades there does not appear to be a very high representation for minority ethnic groups. What is the Department doing in general terms to increase the representation for ethnic minority groups, but especially at that higher level?

  Jane Kennedy: The first thing we have been doing is making sure we have the statistics, that we have as far as possible the fullest detail of the ethnic minority background of all of our staff. We have about 89% of our staff—as opposed to 67% when we were bringing the departments together. So there has been progress in that. There will obviously be people who, for whatever reason, do not want to participate in such a survey. It does depend upon the cooperation of the staff. But we have made progress in getting the raw data. In terms of the senior civil service, you are right, it is probably the area where we feel there is the most work yet to be done. From the figures that we have: in 2001 we had 2.2% of the senior civil service are from an ethnic minority background; in September 2004, the latest figures that we have—which I am not sure the Committee has, you maybe have the March figures for 2002—we were on 3.3% with a 4% target. So there is still work to do with that group, but further down the grading structure we are doing very well against the targets.

  Q261 Mrs Humble: I do not think we have information about the lower grades. The progress report that we have does not list minority ethnic staff in the lower administrative grades, so if you have that information I think we would welcome it.

  Jane Kennedy: We do not have targets set for Administrative Assistants and Administrative Officers. The reason for that is because we were already at a level of recruitment amongst ethnic minority groups that matches the proportion in the wider population, so we did not set a target. But for Executive Officers we have a target of 6% and we are on 7.9%; and for Higher Executive Officers and Senior Executive Officers 4% and 3% respectively and we are on 4.4% and 3.2% respectively. All of that is good. It is good progress. Nonetheless, we do not see that that in itself is sufficient. We firmly believe that we need to encourage and develop staff with an ethnic minority background so that they can move up through the organisation and move into the upper echelons of the Civil Service.

  Q262 Mrs Humble: Do you have any special measures in place to do that?

  Jane Kennedy: We do have a number. You might have heard about, the Realising Potential scheme. I am told in Whitehall it is an exemplary scheme as a piece of positive action. The Diversity of Purpose strategy that we have developed takes as its slogan: "To treat me equally, you may have to treat me differently." So we have some action programmes which are positive action and there are development schemes for ethnic minority staff. The Realising Potential scheme I have mentioned is a national scheme and over 50% of those who have been through it have achieved at least one promotion. We have had Breaking Through and the latest figures available for that are that 88% of the original intake of 55 staff have achieved at least one promotion. Then there is Accessing Ability: one of the nine participants has been promoted. We are now working on developing a new recruitment system for using HEO to grade 6 level and we are going to be introducing that in two stages over the coming period.

  Q263 Mrs Humble: Is the Department looking to protect ethnic minority staff within the context of the job cuts? Because there may be a disproportionate effect upon minority ethnic staff in these proposals.

  Jane Kennedy: As each sector of the business has drawn up its plans, there are two things going on. There is the Lyons' report, which will require relocation of staff out of London, and then there is the efficiency challenge that we face as a Department. The efficiency challenge is not a new experience for organisations like Jobcentre Plus—and Mark is going to talk to you in greater detail about impacts there and elsewhere too—but, as we have been bringing the departments together and going through this huge programme of change, there has been throughout a requirement to do things more efficiently and to focus on our work methods, to make sure that we are working in the most appropriate way, and therefore the deployment of staff has been affected. So there has been a period of turmoil, but, throughout this, as we have been making the plans, we have been taking account of the impact. Specifically in terms of the Lyons' Review, as each part of the business draws up its plans—and we did, I think, do an efficiency challenge as well—we are doing a race impact assessment and we will publish each assessment. We are on course to publish Jobcentre Plus, I think, by the end of the financial year; the CSA by the end of the financial year; the DCD's first impact assessment will be published by the summer; and The Pension Service again by the end of March. The only area of business that has not been conducting the impact assessment is the Appeals Service and that is because they have not put their plans in place.

  Chairman: Andrew Dismore has a supplementary on the same territory.

  Q264 Mr Dismore: There are two issues really. The March 2005 targets do not look particularly challenging to me. Where do they come from?

  Jane Kennedy: March 2005 targets for what?

  Q265 Mr Dismore: For senior grades, in terms of BME people. You read them out earlier on: 31 March 2005, senior civil service, 4%; grade 6/7, 3%; and so on.

  Jane Kennedy: We have set targets which are stretching but which we hope we can achieve.

  Mr Fisher: The proportion of staff in the community at large is about 7%. In some of the grades, as Jane has said, we are significantly over-achieving that. 10% of the lower grades of our staff are from black and other ethnic minority communities. As far as the senior grades are concerned, yes, the targets do not yet reflect that parity, but they are, as Jane has said, stretching but achievable. There is no point in setting targets we do not have a hope of meeting. The only way of recruiting into the senior grades is either from people in the grade or the lower grade before that or externally into Jobcentre Plus from other parts of the Department or from outside. None of those instruments are instant solutions to this problem. The first test of promotion into the higher grades has to be somebody who can do the job you need to be done, and they have to have certain levels of experience and relevant knowledge and all those other good things. So it is important to set targets that are stretching but it is also important to set targets that reflect the populations from whom you are recruiting to fill these jobs. It is jolly good that we have increased the senior civil service by a percentage or more. We clearly have more to go, but we will have to get there in stages. There is no single magic bullet solution to do that.

  Q266 Mr Dismore: March 2005 is next month. When will you be announcing the next round of targets?

  Mr Fisher: This is really Barbara's area, looking again at the targets. I think we will probably need to launch new targets for March `06. I am sure we will be doing that. One of the issues here, of course, is that we are in the middle of a significant downsizing exercise. We are not actually recruiting large numbers of people from outside just at the moment, for obvious reasons.

  Q267 Mr Dismore: This is what I was going to come on to next, with particular reference to the impact in London. I understand that 48% of the most junior grades and 37% of the executive officer grades are from BME. With a significant downsizing and, in particular, the jobs' migration out of London, that will significantly impact on your ability to maintain the existing balance of the workforce, never mind achieving these targets. What consideration are you giving to that as part of your impact assessment?

  Mr Fisher: We have an overall efficiency challenge which is for Jobcentre Plus to achieve its part of the targets for staff reduction set by the Chancellor. That means change. Those changes are, in a sense, broken down into a whole set of component parts of an overall plan to achieve it. One part of that plan, for example, is centralising the benefit processing work in different parts of the country. Another part of the plan is to complete the roll-out of Jobcentre Plus itself and ensure that we have a network of offices that serve every community in every part of the country. We have to subject every element of that plan to a race impact assessment to address exactly the question you ask: How does that impact, if it does impact differentially, on the different parts of Jobcentre Plus and the make-up of staffing? We will go through that process and we are going through that process and we will publish a race impact assessment. It is important to understand that, as far as the centralisation of benefit processing is concerned, a lot of that was done, as far as London is concerned, in the early nineties. We made those changes when we moved to Belfast, Makerfield and Glasgow in the early nineties. We are not going to change the fundamental geography of the frontline offices. There will still be frontline offices dealing directly with customers in every single part of London as there are now. To the extent that we are making further changes, it will be with the backroom staff, and much of that has already happened as far as London is concerned. But we will be putting every single element of this plan through the proper race impact assessment process.

  Q268 Mr Dismore: How many staff are you planning to move out of London?

  Jane Kennedy: That is about 4,000.

  Mr Fisher: As Jane has said, the Lyons' Review, which is London and the south east, means moving about 4,000.

  Q269 Mr Dismore: How many of those are going to be in junior clerical grades and how many in EO grades?

  Mr Fisher: I think there will be a mixture of staff in all grades affected by these changes. We are in the middle of doing the process of race impact assessment. Clearly, as part of that process, we have to identify exactly the numbers and the grades affected and the mix at various levels within the organisation affected by those changes.

  Jane Kennedy: We will be publishing that shortly.

  Mr Fisher: We will be publishing all of those things

  Jane Kennedy: I have mentioned already the intention to develop proactively the ethnic minority staff we already employ. As staff leave the organisation, we have agreed a process with the trade unions—they share our concerns and the concerns that you are expressing—to monitor the ethnicity of those who leave. So we will carefully follow and track the impact of this as we go through the process. We have also commissioned our internal occupational psychology division to carry out an in-depth analysis of the selection criteria that are going to be used when we are selecting staff for early release or redundancy, either voluntary or any other form of redundancy. We hope this will identify whether any aspects of the criteria that we are using, albeit jointly agreed, creates any bias against any particular group. We are watching it carefully. We are aware that there is the possibility that this process could impact adversely on groups that are already at a disadvantage.

  Q270 Mr Dismore: This is a slightly separate issue. You want to make sure that any job cuts are done fairly, I understand that, but my concern is that the jobs that are migrating out of London will be replaced by people who live elsewhere who are less likely, I suspect, to be in BME groups, and therefore the prospects of you meeting your targets and, indeed, maintaining the present ethnic balance will be significantly affected.

  Jane Kennedy: That is possible. I cannot deny it.

  Q271 Rob Marris: The 2001 census showed 7.9% of the population is BME. What is the percentage for the working population when we talk about staffing?

  Dr Burford: The Labour market working age population we thought was . . .

  Jane Kennedy: I do not have that figure.

  Mr Fisher: It is about 7%, is it not?

  Dr Burford: It is just over 7%, I believe, but I can send you an accurate note on that.

  Rob Marris: Please.

  Q272 Miss Begg: I would like to move on to ethnic monitoring of DWP customers. We have heard, from a number of our witnesses, criticism of the Department's failure to conduct any ethnic monitoring of the customers. There is no standard monitoring across all the DWP agencies. Why has it taken so long for the DWP to carry out that kind of ethnic monitoring? Can you update us as to what progress has been made in making sure you know what the ethnic mix is of your customer base?

  Jane Kennedy: As far as Jobcentre Plus is concerned, we have been collecting the ethnicity data on our customers. It has only been happening since the New Deals were introduced, which, actually, is quite a long time now. We have been collecting the data in that area. That information is held within Jobcentre Plus and whether it is in an area where Jobcentre Plus has been ruled out or not.

  Mr Fisher: As far as people of working age are concerned, as Jane has said, we have always, since the New Deal started, collected data on the ethnicity of JSA customers, the people on New Deals. As Jobcentre Plus is rolled out and is beginning to deal with people on Incapacity Benefit and lone parents, we are also collecting data on those customers. By the finish of roll-out, which will be 2006, we will collect ethnicity data on all of the Jobcentre Plus's customers of working age. The Pension Service, I know, have plans to do that, but they have had issues. To do this properly requires not just customer consent but major changes to IT systems, so it is an issue to do with how you fit these into the programmes. They very much wanted in The Pension Service to do this as they began to do Pension Credit, but they were not able to make the changes to the IT, so they have had to do a lot of other work using census data and other things to try to work out exactly how it was impacting on different parts of the community without collecting it routinely. But, as I say, as far as Jobcentre Plus is concerned, we will soon be in a position, which is really helpful, of understanding the ethnicity in some detail of all our customers.

  Q273 Miss Begg: I accept your explanation as to why the opportunity has been missed with regard to Pension Credit and the roll-out of Pension Credit, but do they have a time scale now? Will they be doing this monitoring in The Pension Service, do you know?

  Mr Fisher: As soon as they have the space or the computer systems to put this in is when they will want to do it. But they do actually have reasonably robust data from census and other monitoring of how the Pension Credit is working in this dimension.

  Dr Burford: What we have done with The Pension Service is to use what we have. There is a great deal of information, not collected operationally but collected almost on a project basis. We have used what we have to make sure it helps us to inform the services and The Pension Service, but we have to wait until we install the proper large databases before we can collect that information operationally. In the meantime, we are trying to learn what you do with the information, because it is not just good enough to collect it and tick the box; we have to learn how we turn that information into the knowledge to act. That is part of what we are doing with The Pension Service now.

  Q274 Miss Begg: You acknowledge that in your progress report, because you say in it that ethnic monitoring is very difficult and requires "an ambitious programme of data linking for ethnic minority customers, and cross-departmental working to align the IT necessary to monitor all their staff functions." Are you managing to do that? Or is it proving just too difficult to get all these different bits of information and make sense of it rather than just a data collection service?

  Dr Burford: As you say, it is difficult technically to do and we are working away at that, but it is just as difficult technically to use the information and to learn how to use it and for it to affect decisions, and that is part of the other half of the work that we are doing now.

  Jane Kennedy: For our working age customers we are on course to meet the 2006 deadline for the full range of data.

  Q275 Miss Begg: And that will include income support as well?

  Jane Kennedy: Yes.

  Q276 Miss Begg: Not only those who are on New Deal.

  Mr Fisher: All the people who come into Jobcentre Plus, which obviously now is everybody on Income Support and Incapacity Benefit, as well as people on Jobseeker's Allowance. But, just to build on what Barbara has said, we are beginning to use this data actively to monitor our performance—which I think is the important point. We know a lot about the differential impact of the New Deal programmes: we have looked at the New Deal programmes to see which components of the programmes are working better for different groups and we have changed the programme as a result of that sort of work. Of course we have put a lot of effort into changing the whole basis on which Jobcentre Plus does its resourcing, to focus resources on the wards where we know the populations of ethnic minority people are greater. That has been in response to this sort of customer data, which basically showed we had a problem.

  Q277 Miss Begg: Are you doing all that in-house or are you using external contractors?

  Mr Fisher: We have used some external consultants, particularly a firm called ECOTEC to review some of our approaches, but most of this has been done in-house, and with help from other colleagues in the Department, particularly in Barbara's team.

  Q278 Chairman: Barbara, if I understood you correctly, you said you were extracting some data from projects and bits and pieces of work that were being done, and you said some further progress would have to wait until some new data systems came on stream. The customer management service or customer information service and some of these databases that are being worked up, will they provide that functionality for you in future? Are you able to look forward and say that in a number of months or years you will be able to get a more consistent computer or technology-driven access to some of the information you are looking for?

  Dr Burford: That is the approach we are taking. Part of the approach is actually to make sure technically we can collect this information routinely, but also we need to know what you can turn this data into and we need to make sure our systems are geared to produce the kind of input that will make a difference to decisions.

  Q279 Chairman: That is important and I understand that is an aspiration but I am really asking you a separate question, which is: Is something being worked on at the moment that will do that for you, do you know?

  Dr Burford: The Pensions Transformation Service does contain that functionality.


 
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