Supplementary memoranda submitted to the
Work and Pensions Committee
1. When I appeared before the Committee
on 2 February I said that we were in the process of considering
the implications of the department's efficiency programme for
our workforce plans. Separately, the Committee has also requested
details of how the resources agreed as part of the spending review
have been allocated across the Department. Information on how
administration resources have been distributed is attached.
2. The financial allocations have been set
using all of the funds available to the Department, including
known and estimated sources of EYF as at 1 April 2004. The allocations
also include Efficiency Challenge Funding from Treasury.
3. The financial allocations have been agreed
based on plans for each business area that aim to achieve the
relevant PSA targets within available resources, and take account
of the impact of our efficiency programme including planned workforce
reductions.
4. I am pleased to provide, as agreed, the
attached table setting out workforce assumptions for each area
of the Department for each financial year of the SR2004 period.
As I said at the time of the Committee's report on the Child Support
Agency (CSA), I am committed to protecting CSA front-line resources
until the new computer system is working effectively.
5. The efficiency challenge is for the Department
corporately to achieve. I do want to stress that the breakdowns
by businesses and corporate services are indicative. As we progress
through the SR2004 period these headcount allocations will be
kept under review and I anticipate that there will be some adjustments
between the allocations from time to time.
6. Having said that, we have already made
good progress on reducing headcount and we are on track to deliver
the Department's total efficiency-related reduction.
7. I trust this information is helpful but
please let me know if you require any further explanations.
Alan Johnson
Notes: 1. These profiles are indicative and subject to review.
2. Profiles rounded to nearest 50 FTEs.>
3. Other CSS includes—IAD, LSPG, Private Office, Communications and ISBs.
4. The figures do not include additional headcount for work relating to Incapacity Benefit reform Pathways announced in the Pre-Budget Report 2004.
Glossary:
FTE—Full Time Equivalent
WWEG—Work, Welfare and Equality Group
PC Directorate—Pensions Client Directorate
PSD—Programme and System Delivery
CSS—Corporate and Shared Services
IAD—Information and Analysis Directorate
LSPG—Law & Special Policy Group
ISBs—Independent Statutory Bodies
A table showing actual staffing at 31 December 2003 and planned staffing levels at 31 March 2006 was provided to the Committee in February 2004. The table above shows different figures in the profile for the end of 2005-06 for a number of reasons:
— The plans reflected in the February 2004 table have been updated as a result of the Budget 2004 announcement, and subsequent business developments.
— The table above uses the "Mandate" definition of staff numbers which is that used currently for Civil Service wide statistics whereas the previous numbers used departmental staffing estimates. (The key difference is the exclusion of staff on paid maternity leave). The department's efficiency savings on workforce (the 30,000 net figure and the assumed 100,000 2008 figure) were calculated on the Civil Service wide method of measurement.
— Changes to the Department's composition: The Rent Service became part of DWP from 1 April 2004, and was not included in the earlier table.
— We have broken down the line titled Corporate Centre (including Debt Management) in the earlier table to show a number of non-corporate centre functions, including the Appeals Service which is now shown separately.
— Jobcentre Plus is now profiled to have 6,400 fewer staff at the end of 2005-06 than in the earlier estimate. This reflects how Jobcentre Plus efficiency plans have moved on to include, for example, centralised processing.
— The Child Support Agency will retain more staff for a longer period until the new computer system is working effectively.
— The Pension Service will retain more staff for a time in line with a revised transformation implementation timetable.
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