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WORK AND PENSIONS
Advance from the Contingencies Fund
The Secretary of State for Work and Pensions (Mr. John Hutton): The approval of the Department for Work and Pensions spring supplementary estimate via the Consolidated Fund (Appropriation) (No 2) Bill will not occur until the end of the month. Parliamentary approval for additional resources of £1,252,950,000 has been sought in the Department's spring supplementary estimate. Pending that approval, urgent expenditure estimated at £750,000,000 will be met by a repayable cash advance from the contingencies fund.
Discretionary Loans Scheme
The Parliamentary Under-Secretary of State for Work and Pensions (Mr. James Plaskitt):
I am pleased to announce changes to the discretionary loans scheme from 3 April 2006.
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We have greatly simplified the rules for determining the size of the maximum budgeting loan amount that can be offered to eligible applicants. There are now only three rates that can be offered: one for single people; one for couples without children; one for families with children.
The complex "double debt" rule is abolished so that those applicants with existing budgeting loan debt have more help available to them. This, and the simpler rules for determining size of the maximum budgeting loan, means that applicants will understand better the help that is available and when they can access it.
We have increased the overall limit on loan amounts that any applicant can borrow from the social fund. At the same time we are reducing the highest loan repayment rates and giving applicants longer to repay their loan debt.
Also from 3 April 2006, budgeting loan applicants will benefit from being able to have more savings before any budgeting loan award is affected. The capital limit is doubled to £1,000 (under pension age) and £2,000 (pension age).
Overall this is a significant package of changes. Also, in making loans more affordable and easier to access, we aim to help people avoid alternative high cost lenders.
Agency Target and Business Plans 2006–07
The Secretary of State for Work and Pensions (Mr. John Hutton): I am today able to announce the annual performance targets in 2006–07 for each of the executive agencies of the Department for Work and Pensions. The targets I have agreed are set out below.
Further information on the plans of the Pension Service, Child Support Agency, Disability and Carers Service and the Rent Service in 2006–07 is contained in their individual business plans which have been published today. Copies have been placed in the Library. Copies of the Jobcentre Plus business plan will be made available in due course.
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By 2008, be paying pension credit to at least 3.2 million pensioner households while maintaining a focus on the most disadvantaged by ensuring that at least 2.2 million households are in receipt of the guarantee credit.
Improve working age individuals' awareness of their retirement provision such that by 2007–08 some 15.4 million individuals are regularly issued a pension forecast and 60,000 successful pension traces are undertaken a year.
Issue winter fuel payments for 2006–07 (over 99 per cent. of all automatic payments and successful claims received before 23 September 2006) by Christmas 2006.
Reduce sick absence rates to 8 days per capita.
Ensure that 95 per cent. of telephone calls received by the Pension Service centres are answered by customer advisors and less than 1 per cent. of attempted telephone calls receive the engaged tone or message.
Achieve a pension credit accuracy rate of at least 96 per cent.
Achieve a state pensions claims accuracy rate of at least 98 per cent.
Collection rate: new and old scheme
By 31 March 2007, where maintenance is paid through the collection service the Agency will collect, on average across both the new and old schemes, 90 per cent. of the amount due.
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By 31 March 2007, in 65 per cent. of cases across both the new and old schemes in which a liability to pay maintenance exists, the non resident parent has either made a payment via the collection service, or a maintenance direct arrangement is in place. In addition, further ensuring that at least this level of performance is achieved for those new scheme cases in which the parent with care is on income support or income-based jobseeker's allowance.
By 31 March 2007, the agency will clear 55 per cent. of new applications within 12 weeks of receipt and 80 per cent. in 26 weeks.
By 31 March 2007, the agency will have reduced the volume of uncleared new scheme applications by 25 per cent. of the amount outstanding by the end of March 2006.
By 31 March, 2007, accuracy on the last decision made for all new or old scheme maintenance calculations carried out and checked in previous 12 months to be correct to the nearest penny in at least 87 per cent. of cases.
The agency will collect arrears equivalent to 40 per cent. of the amount accruing due to non payment of regular maintenance between 1 April 2006 and 31 March 2007.
Ensure that for the period 1 April 2006 to 30 September 2006 at least 90 per cent. of calls to the DLA/AA helpline, our national telephone service, are answered first time and from 1 October 2006 ensure that at least 92 per cent. of calls are answered first time.
Ensure that less than 1 per cent. of all calls attempted to the DLA/AA helpline receive an engaged tone/automated message.
Increase the percentage of customers satisfied with the service provided by Disability and Carers Service to 85 per cent., an increase of 2 per cent. above the 2005 Customer Satisfaction Survey.
Clear new claims for disability living allowance within an average of 39 working days, new claims for attendance allowance within an average of 19 days and carer's allowance within an average of 15 working days.
Achieve an accuracy rate of 90 per cent. on decisions on claims for disability living allowance and 92 per cent. for attendance allowance.
Achieve a financial accuracy rate of 98 per cent. on carer's allowance payments.
Reduce sick absence to 8 average working days lost;
Meet the efficiency challenge by delivering a staffing level of 6,038.
Reduce the cost of processing benefits to:
CA claims £97.93
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95 per cent. of Local Reference Rent (LRR) Housing Benefit determinations to be upheld on redetermination.
95 per cent. of all Fair Rent valuations that are checked as part of our quality assurance processes are verified as being accurate.
Local Authority Housing Benefit Department Customers
Our target is to ensure that at least 95 per cent. of our local authority customers rate our service as satisfactory or better during 2005–06.
Fair Rent Customers & Housing Benefit Inspections
Our target is to ensure that at least 95 per cent. of our fair rent customers, and those housing benefit claimants whose properties we inspect, rate our service as satisfactory or better during the year.
To increase productivity by 7 per cent. by the end of the year.
To reduce cost per case by 6 per cent. in real terms by the end of the year.
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