Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 20-39)

DEPARTMENT FOR WORK AND PENSIONS, JOBCENTRE PLUS AND THE PENSION SERVICE

29 MARCH 2006

  Q20  Mr Mitchell: I have forgotten what the problem was, but there was certainly a problem in the Grimsby Jobcentre. People had to ring Hull to register for unemployment benefit. They had to make the first call to the call centre. It is not only the alien act of ringing Hull, which is like asking people to ring Transylvania as far as Grimsby is concerned, but it was the fact that they could not get through, the phones were not answered. There must be occasions like that when you have got a particular problem in a local office when your call centre system gets jammed up?

  Mr Lewis: I wonder if I can, at this point, pass over to Val Gibson because I think she may be able to say more about the specific problems because they did exist, you are absolutely right.

  Q21  Mr Mitchell: I think I wrote to you about that.

  Mr Lewis: Indeed, I think you did.

  Ms Gibson: As Leigh said, there were some specific problems in our contact centres dealing with claims to benefits during last summer and they are acknowledged in the NAO Report. The Report also acknowledges the improvements that have been made since then. We have achieved our target of answering 90% of all calls every month from November on. We are answering them quickly because every month from December we have achieved our target, answering rate of 80% in 20 seconds. I think we are now on top of the problem. It was a very difficult summer for customers. We know that many tried and could not get through. We worked quickly to resolve that, and we worked quickly in collaboration with colleagues in job centres and benefit delivery sections so that we could make sure that the customers got the service they needed and got their benefit paid.

  Q22  Mr Mitchell: I cannot say that I have received a lot of complaints from my constituents because I have not, in fact, except that people find it difficult getting through. More importantly, older people who do not have a portable telephone, and often do not have a telephone at home, do not know what to do when they are told they will be rung back. What do they do?

  Mr Lewis: If someone really does not have a convenient telephone then we will always deal with them in one of our offices face-to-face. It is as simple as that.

  Q23  Mr Bacon: Mr Leigh, how many local offices have closed?

  Mr Lewis: We are going through a process which followed from the merger of the then Employment Service and the then Benefit Agency to form Jobcentre Plus, and we are reducing from—Val Gibson may have the specific figures—around 1,500 local offices to around 1,000.

  Q24  Mr Bacon: How many have closed so far, Ms Gibson?

  Ms Gibson: I do not have the specific figures, but we can let you have them.

  Q25  Mr Bacon: This is a radical change to the pattern of work in the Department and in job centres. I would imagine that knowing how many offices have closed hitherto is a pretty important thing to know.

  Mr Lewis: We have opened now about 750 of the new style offices.

  Q26  Mr Bacon: Do you mean 750 contact centres?

  Mr Lewis: No. If your question is about contact centres, I cannot absolutely answer the question.

  Q27  Mr Bacon: It is not. What I am trying to find out is how many local offices have closed, which neither of you seem to know. Ms Grossman, do you know?

  Ms Grossman: The Pension Service came out of 450 offices but developed a local service capability. We visit over 800,000 pensioners in their own homes where it is most convenient to them but we did transition from 450 offices into 29 call centres to begin with.

  Q28  Mr Bacon: Mr Leigh, is it possible that you could write to the Committee with a note both on The Pension Service and on Jobcentre Plus with how many local offices you had to start with, how many you are planning to close, how many you have closed so far and how many there are still left to close? [1]

  Mr Lewis: Most certainly. Can I make one point because it can sound as if we are cutting back hugely on the geographic scope. Often, what we have done is to close two offices almost literally where we had two offices on two different sides of the street and bring them into one.

  Q29  Mr Bacon: I am sure you can put that in your note. If you would not mind saying where they are as well, including the ones you have not yet closed but are planning to close.

  Mr Lewis: Most certainly.

  Q30  Mr Bacon: You said, in relation to the Chairman's question about figure 25 on page 49, that the Disability and Carers Service was behind the others, but you have now fundamentally re-engineered the system, and there is new telephony. I must say, when I looked at that graph, it really struck me that the grey bar for the Disability and Carers Service, that is to say the calls that were blocked or the customers heard an engaged tone, was nearly 80%, far, far poorer than the others for the most vulnerable group, the disabled and the carers. What was the telephone service you had before? What was the system you had before? If you had to get rid of them to put new telephony in, you had to get rid of them to fundamentally re-engineer.

  Mr Lewis: It was an inadequate one, self-evidently.

  Q31  Mr Bacon: Was it one that you had installed for the purpose which then turned out to be unsuitable so you scrapped it?

  Mr Lewis: It is one that had been inherited. The Disability and Carers Service only came into existence as a separate business relatively recently. It inherited telephony which was quite clearly not fit-for-purpose. The actual figure, 77% of calls were blocked in 2004-05 to the DLA helpline and people rang many times and did not get through. That was completely unacceptable, just to be clear. The transformation which has been achieved is a remarkable one, but it is a shame and a great pity that the service was as poor as it was in 2004-05.

  Q32  Mr Bacon: Paragraph 4.8 says that only some of the contact centres have useful messages for the customers waiting in a queue. It seems a fairly simple thing to make sure that your queuing system provides messages and yet only some do. Why is that? When are they all going to do that?

  Mr Lewis: In general, it says if you look on the same page, 4.9: "All the automated systems used by the Department comply with good practice. In particular, they have short scripts and offer useful information to the caller".

  Q33  Mr Bacon: Are you saying that they all provide useful messages?

  Mr Lewis: No, I am not saying every single one.

  Q34  Mr Bacon: With respect, my question was not about whether they all had short scripts or not, my question was why do they not all have useful messages for the customer.

  Mr Lewis: Picking up what other colleagues have said, we try to avoid what one does find in many commercial centres, which is when the number is answered you then get a bewildering array of, "If your call is about X press button one" and 15 minutes later, "If your call is about something else, press button 92".

  Q35  Mr Bacon: People have topped themselves while they were waiting!

  Mr Lewis: Indeed. We do not use that. In general, we try and answer the phone when it rings. I think that is one of the reasons why the great majority of our customers say they find getting through to us easy and convenient.

  Q36  Mr Bacon: You mentioned your comparison with the private sector being quite favourable. In paragraph 4.12 it says: "Each agency has internal targets to answer customers' telephone calls within 30 seconds". Later on in that paragraph it says: "Answering 80% of calls in 20 seconds is the current call centre industry standard and the Department is considering whether to make this consistent across all agencies". You obviously have not done it yet. How far has your consideration reached and are you going to do it?

  Mr Lewis: I would like to do it.

  Q37  Mr Bacon: Is it a question of cost?

  Mr Lewis: Yes, it is. Inevitably, before you take on a more demanding target you have to know that you have got the resources to be able to meet that target. I think our first priority, as my colleagues have said, is to try and ensure that we can hit our targets. Some of our businesses already have a target of 80% within 20 seconds just to be clear, and others have a target of 80% within 30 seconds. My priority is to get everyone meeting the current targets and then I would like to go further, but of course, there are resource considerations in that.

  Q38  Mr Bacon: I would like to ask you about the cost of the calls because many of your customers, almost by definition most of them, are in frustrating circumstances, they are on low income. What would it cost to make all your calls free? Have you considered doing that?

  Mr Lewis: Yes, we have. We do have some 0800 numbers. You will have seen that the Pension Credit application is an 0800 number. Almost all of our numbers are low cost calls, 0845, which are about three pence per minute. They are relatively low cost calls. If any of our customers tell us that the cost of the call, even at those charges, is prohibitive, then we will offer to ring them back. There are some real difficulties with having free cost calls because you do get an awful lot of what you might call nuisance calls made by people to 0800 numbers, so there are some balancing considerations. In general, there has been very little complaint or feedback from our customers about the cost of our 0845 calls.

  Q39  Mr Bacon: Can I get you to turn your attention to page 52, paragraph 4.15. It talks about the "warm" phones that are connected to the contact centres which customers can use and are free. These are phones inside the Jobcentre Plus offices. I must say the first time I read this it looked slightly Kafkaesque that you go into what you think is the place you are going to get your service, where at least there still is a local office, and you are told to get on the phone to the contact centre. It also says that the customers do not use them because they do not like them because there is no privacy, which more or less destroys the point. First of all, would it not be very easy to create little booths which are soundproofed and there is a degree of privacy? Secondly, why on earth is this happening? Is it not slightly crazy that the staff in that local office are so unable to help you that the only thing they can tell the customer to do is "phone the contact centre"?

  Mr Lewis: I think I am going to pass over to Val Gibson to take the specifics and, if I may, I will seek to add at the end to try and reach your general point.


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