Report Highlights
- We welcome the fact that Pension Credit has increased the incomes of many pensioners. However, take-up targets should be set at a more challenging level and should be based on the amount of Pension Credit unclaimed. The Government should also consider setting take-up targets for disability benefits.
- The introduction of Pension Credit was managed well and the Pension Service provides a good quality of service for many pensioners. However, the Department should review its procedures for dealing with queries about incorrect decisions and with reported delays. New technology allowing staff to amend award letters should be prioritised and customer representative groups consulted on future output. The Department should also review the adequacy of the information, training and supervision provided for Pension Service staff, particularly on disability and carer benefits.
- The Pension Service faces a significant challenge in aiming to decrease its workforce to about 8,000 in 2011/12 (approximately 40% of the numbers in December 2003). It expects these reductions to be supported by the Pensions Transformation Programme. If there is any further delay in the implementation of this programme or if it proves unable to deliver the expected efficiency savings, or if there are indications that the quality of service is deteriorating, the staff reductions should be postponed.
- The Local Service has played a key role in encouraging take-up. It requires continued resources to maintain an accessible face-to-face service in the community. There should be no further reductions in the number of front-line staff. Given the advantages for benefit take-up, guaranteed funding should be provided to enable the Pensions Transformation Programme to be implemented as originally planned, without a break.
- The Pensions Commission reports later this year. Thereafter the Government of the day must set out the strategic direction of future pension provision. The relationship between basic state pension, state second pension and private pension provision needs to be clarified, including the longer term role of Pension Credit; otherwise means testing and possible disincentives to save could still be an issue.
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