Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

DEPARTMENT FOR WORK AND PENSIONS AND JOBCENTRE PLUS

31 MARCH 2008

  Q60  Phil Wilson: The first paragraph on page 30 is about employer satisfaction. It says it has improved over the years, but it is still only 45%, on the way to 50%, that are most satisfied with the quality of candidates provided, although this was an improvement on the previous year. What are we doing to get that figure down? Why is it at that level?

  Sir Leigh Lewis: I will say a word or two just on some of the numbers, and then perhaps ask Chris Hayes, who is closer to Jobcentre Plus's employer customers day by day. It is worth saying that the last survey we did of employers that used Jobcentre Plus services in 2006/2007 found that three-quarters were satisfied with the overall levels of service. I have a lot of detail here that I will not bore you with. On almost every specific indicator within the survey the level of employer satisfaction with Jobcentre Plus had increased compared with the previous survey, which was done in 2004. We certainly seem to be seeing Jobcentre Plus's standing with employers improving.

  Mr Hayes: We do have a specific target within Jobcentre Plus to measure employer satisfaction with particularly the candidates we send to them, and that is done by independent survey. We get the results on a monthly basis. We are very aware and very responsive to the results that we get from those surveys. Those show on average that we are achieving about 73.5% of satisfaction from employers that we survey on that basis in terms of the candidates we provide for them. We are now trying to move to a different relationship with employers through the local employment partnership initiative, and that is where we are asking employers to work with us, particularly with our priority groups, to have a much more longer-term strategic understanding with us. The simple deal there is that we will try and understand their training needs over a longer term; and we will then get from them a commitment to look seriously at people from our priority groups in considering recruitment into the vacancies they have. In that way, we are getting a much better relationship with employers; and they understand that in some cases some of our priority group customers are a bit further away from the labour market, and we might both need to do a little bit more to help them into employment, and into sustainable employment.

  Q61  Phil Wilson: There is another survey that I want to ask a couple of questions on, which is on pages 34-35, the survey that you have done on satisfaction amongst people from ethnic minorities. There are some issues that have been raised which I found interesting. One of the main concerns amongst ethnic minorities claiming incapacity benefit and income support relates to staff attitudes, which is the most common cause of potential complaint across the ethnic groups. Can you extrapolate from that or do anything to change it?

  Sir Leigh Lewis: Let me say something. If the Committee would find it helpful, we have a little bit of recent data that was not available when the Report was put to bed, because we have had now the 2007 Jobcentre Plus customer satisfaction survey, which we published earlier this month. Overall, in that survey ethnicity seems to play a relatively minor role in the extent to which people are or are not satisfied with Jobcentre Plus services; so it does not vary very much by ethnicity. There is some good news—a lot of good news actually. The report said that the overwhelming majority of Jobcentre Plus customers, 80%, said they were either satisfied or very satisfied with the service. One in five felt that the quality of service had improved over the previous 12 months; and only 5% felt it had declined. This is worth saying, I think: customers from non-white groups were amongst those most likely to have perceived an improvement in the service. So 80% felt they were satisfied or very satisfied, which still leaves 20% who were not. That is not sufficiently good; but these are quite encouraging results that we have been getting.

  Q62  Phil Wilson: This might also be an update, but paragraph 3.23, the last sentence, reads: "Although overall more ethnic minorities than whites felt service had improved over the past year, more Mixed and Black Caribbeans felt the service had got worse." Why would they have a different view to the other ethnic minorities?

  Sir Leigh Lewis: That is hard to say. One thing which goes into these technical difficulties—I have explored some of this in preparing for this hearing at great length and the more you explore in some senses the less you are clear that you really understand it. What we get down to here is some very small sample sizes, even with a big survey, when you are trying to get down to communities within communities, if you will; you end up with some quite small sample sizes. So while there are some differences between different parts of the ethnic minority group overall, I do not think we should put too much weight on relatively small differences amongst communities.

  Q63  Phil Wilson: The last sentence of paragraph 2.35 states: "Focus group participants were unaware of the range of Jobcentre Plus programmes available to help them into work and thought there should be more advertising and provision of services out in their communities." How are you getting round that, to advertise?

  Sir Leigh Lewis: Again, Chris might want to say something at a local level. At a national level, we are trying to promote very hard the programmes that are there. It goes back to our outreach question; it is not just through ourselves but through a whole range of our partners with whom we work, because quite often they can be better advocates for some of these programmes than can we.

  Mr Hayes: Each district manager who would manage a fair proportion of a geographical area has very specific partnership plans, and, in that, very specific guidance about how to ensure that communities are aware of services and how they are accessing services. A good example is the children's centre we went to in Stockwell where our advisers are on site, talking to parents as they come in; and also we have got various literature on site that parents who maybe do not see the advisers can pick up, with contact numbers. We are increasingly trying to get out into community centres and children's centres, and also we are trying to operate some of our services for lone parents in particular from employer premises so that we can bring lone parents into employer premises so that they can understand what the workplace is like. Those messages can go out to their peer group, and they can influence their peer group to access our mainstream services.

  Q64  Phil Wilson: Moving to the same kind of area about how people from ethnic minorities, when they go into Jobcentre Plus, are approached and how they interface with the staff that are there, paragraphs 3.19 and 3.20 are about how you disseminate good practice. Paragraph 3.19 mentions conferences et cetera, which you no longer do; but now you try and disseminate information on best practice through the Internet, which all seems great. Then we read in paragraph 3.20: "At local level we found that few staff in Jobcentre Plus offices accessed examples of good practice." So the information is there and in theory it sounds great, but in practice it does not seem to be happening. How do you square that circle?

  Mr Hayes: We considered that comment and in any event we were refreshing the material we had on the internal intranet site for our people to make sure that there is a range of information available to them; and that it contains all that they need to be aware of services, both that Jobcentre Plus provides but also as importantly other organisations provide in that area. We also have a training programme whereby each new advisor within the first three months will undertake at least three modules, which talk to them about diversity, discrimination and cultural awareness. Once the adviser has gone through that programme we then obviously regularly measure the quality of engagement that they have with customers through various mechanisms. One is that their manager will sit with them through interviews and pick up any training needs—not just training technically but also in terms of general awareness. Also every Wednesday our offices open a little later and we use this time to feed in information there, and we often invite organisations from the community to these sessions to keep our awareness up to date. We are very conscious of the fact that we need to constantly reinforce these messages and keep them up to date. In that particular area we are about to launch a new intranet site, which will hopefully help our people to have that up-to-date information.

  Q65  Phil Wilson: In paragraph 3.16, on personal advisers; it basically says they do not have the time anyway; they are too busy to sit down and access the information. In some areas it does not effectively cover the diverse cultures of the customers that they are dealing with on a regular basis. Again, it is the theory and the practice; we still have the same issue whereby once you have revamped the products suite it is getting the staff to sit down and do this in a practical sense, rather than listening to all the theory.

  Sir Leigh Lewis: Can I just say a word on this? As ever, and I have used this phrase before this Committee before, there is always a bottle half full and a bottle half empty. The half-full bottle is that we have 9,000 Jobcentre Plus advisers; and the report in a number of places said how impressed it was with what they do and what they succeed in doing. I have no doubt at all that there are thousands upon thousands upon thousands of people who are in work and employment today who would not have been there without the support of some incredibly dedicated personal advisers in my Department. But, as always, there could be more. You could give them more time for everything. There is always a trade-off in the end between the resource that you can provide and the need that ultimately they could deal with. The fact that we have 9,000 advisers in Jobcentre Plus who, by common consent—and indeed the National Audit Office did a report only recently on advisers themselves—every report says that these are impressive people with real commitment, who change people's lives for the better every working day—I think this bottle is a long way more than half-full.

  Q66  Mr Williams: The Chairman referred earlier to the fact that you piloted a substantial number of initiatives which never really went anywhere. You completed pilots, but, as he said, they were not rolled out. The NAO suggests that they got off to a slow start, were too short, and failed to reach their full potential. Is that not a diagnosis of waste?

  Sir Leigh Lewis: I do think that in some cases, over a long time in Government, we have tended to run too many small initiatives. Any small initiative takes time to get off the ground and gather momentum, and it takes time to deliver results. That takes us back to the conversation that I was having with your colleague Mr Touhig; I think that actually we are on a more sustainable long-term strategic direction now, which is focusing on those areas where worklessness is at its highest.

  Q67  Mr Williams: C&AG, do you think that they were premature in killing some of these schemes off?

  Mr Burr: I think that there certainly might have been more mileage in some of them, yes.

  Q68  Mr Williams: But you choose to disagree. Have you had discussions between yourselves about the different value judgments?

  Sir Leigh Lewis: It is fair to say we have. There is only one judgment of any seriousness in this report which is disagreed, in a report that is otherwise wholly agreed, which would normally be the case, which is that we did not accept the view of the National Audit Office that there had been a lack of continuity in our programmes. We did accept that there were some transitional difficulties in one particular year. That was the one area of disagreement between us.

  Q69  Mr Williams: Again, with Mr Touhig you explained the absence of a public service agreement target, with some reference to general policy about reducing public service agreements or targets and so on, but you reduced the absence of them in relation to ethnic minority employment. Are you absolutely sure they would not be helpful, these targets?

  Sir Leigh Lewis: I can give this Committee an absolute assurance that there will be no diminution of the effort that my Department is applying to supporting people from ethnic minorities into work. Indeed, the Report does say—and we were grateful to it—that there has been huge commitment from my Department over a very long period of time, and much impressive achievement. The target structure is different because, if you like, the over-arching way in which the Government has designed targets for the SR07 spending round is different; but the fact of the matter is that within one of the only two PSA targets which we lead on in Government, there is an absolutely clear indicator, without which we cannot succeed in delivering that target, which is a narrowing of the gap between the employment rate for people of ethnic minorities and the overall rate. That is exactly where we have been in SR04 and SR02 and there will be no diminution of effort whatsoever.

  Q70  Mr Williams: Was it your decision or was it a decision imposed on you not to have a target?

  Sir Leigh Lewis: The decision to have a new structure for public service agreements was a collective Government decision taken across Government.

  Q71  Mr Williams: If it had not been for that, would you have continued—

  Sir Leigh Lewis: I am not sure if it is pleading the Fifth Amendment, Chairman, at this point, but I do not think I am going to set out hypothetically my own views. I think the Government took a decision to have a smaller number of public service agreements precisely because of a view that actually having a very large number of PSA targets was probably not helping in the real intention of joining up Government. That, I think, is actually—for what it is worth, and I think it was the right decision—is having benefits in causing departments, including my own, to work together more closely. I just want to come back again—because it is an important issue—there will be no diminution of effort from my Department in this respect.

  Q72  Mr Williams: I noticed the dubiety at the start of your comments there. Without targets your practice of devolving funding surely makes it much more difficult for you to judge effectiveness!

  Sir Leigh Lewis: I probably need to say, so that it is there on the record, that we are not without targets. The target is the same target; it simply sits under a different structure, so I think it is just important to say that. As Nahid Majid explained earlier, if you take our city strategy areas almost without exception they have targets that they have arrived at locally, which are for reducing the gap between ethnic minority employment and other employment or increasing the employment rate for people from ethnic minorities. There can actually be a very good reason—will you bear with me for a half a minute—for not imposing targets from the top. Remember, I said that I have been at both ends of this. If you set a target from the top down, you simply say: "Here is a target. I have decided it is a good thing. Now you go and deliver it." You may get buy-in or you may not. The great thing, I think, in terms of our city strategies is that by giving that authority, giving that ability to create targets for people locally within the framework of what they believe to be important, we have much more chance that we will have targets that people genuinely own and will be striving to deliver.

  Q73  Mr Williams: How do they devise their targets and how do you know they are right?

  Sir Leigh Lewis: Because each of the city strategy pathfinders has a board, one of whose tasks is, as part of the overall strategy, to decide within the overall framework what they believe to be the targets that are right for their area.

  Ms Majid: Can I give you some examples? The Birmingham pathfinder, which has an ethnic minority population of 37%, has agreed a target reduction of 1.3% per year, a reduction in terms of the unemployment rate. In another case, for example, South Yorkshire has developed six local targets and they aim to achieve a 60% employment rate of their ethnic minorities by 2010 by narrowing the ethnic minority gap by 7.2%. If we did impose a target, it would not be specific to individual localities and the issues around those localities.

  Q74  Mr Williams: On page 32 in banner headline it states, "Personal advisers play a key role in getting ethnic minority customers into employment". Yet those very same advisers who spoke to the NAO said that they did not consider they were given adequate training. Are they right or are they wrong?

  Sir Leigh Lewis: I am not going to say that any member of my staff who says something to the NAO is simply wrong. What I would stress is that we invest very, very substantial amounts in training for our Jobcentre Plus advisers. Chris Hayes has already set out specifically, but we have two days for a new adviser and equal opportunities awareness training, two days tackling race discrimination and valuing cultural diversity training. I think we have a very good record in the DWP in investing in the training of our staff. I dare say if every employer in the country invested in training of their staff to the degree we do, we would see some benefits in the wider economy. You can always do more. You never get to the point where it is perfect or it is absolutely enough. I am sure that at the level of individual advisers there is still a feeling they would benefit from more, but there is a very heavy investment in the training of advisers, as in having advisers at all.

  Q75  Mr Williams: The Department argues that there is plenty of training material available for them, but they come back and say they just do not have time to access it. What are you going to do about that?

  Sir Leigh Lewis: Chris Hayes has already in a way tried to respond to that issue. Again, there is no perfect issue here. We cannot rely solely in a large organisation—and I was Chief Executive of Jobcentre Plus and the Employment Service before it—on people accessing Internet guidance. As Chris was describing, we do lots of other things, bringing community organisations into our offices and giving the time for people to have away from their desks to discuss, learn and concentrate on those issues. In any large organisation today there is a slight sort of romantic-looking back to an age where all training was chalk and talk, all training was done away from the workplace, in effect the classroom, et cetera. That world has moved on, and I do not think there is a major organisation, public or private, today which does not use the Internet or in our case the intranet for part—by no means all—of the training of its people.

  Q76  Mr Williams: It says that the Jobcentre Plus disseminates good practice, but what is the point of disseminating if people do not have time to absorb it and apply it?

  Sir Leigh Lewis: This is a fair question. I do not want to pretend I have got an absolutely perfect answer for you. One part of the task is to put good material, to make it available; but the other is to encourage people to use that material and to make it available. I would say, however, that I spend a lot of my time out in my Department and a lot of that time in Jobcentre Plus—I was in one of our offices in Glasgow on Friday. What I see there is some brilliant advisers and brilliant staff, who have an enormous amount of skill and knowledge about the local communities in which they are operating.

  Q77  Don Touhig: You gave us targets for Birmingham and South Yorkshire. Can you give me the target for Newport in Gwent?

  Ms Majid: Newport Gwent is not a strategy pathfinder.

  Q78  Don Touhig: Am I right in thinking, then, that you have thresholds, and if communities do not have a population of 20% ethnic minority, say, they are not going to get any targeted support?

  Sir Leigh Lewis: The position is that the city strategy pathfinders operate in 15 areas of the country, and outside of those areas we do not have the same structure of a separate pathfinder with a separate board, et cetera. But in those areas, Jobcentre Plus will still have its targets, which are national—

  Q79  Don Touhig: Is there a threshold, Sir Leigh? Does a region or a community or a city have to have an ethnic minority population threshold before you put in those kinds of resources? I am arguing all the time that you are not being specific, and you say you are. Do you have a threshold?

  Sir Leigh Lewis: There is no one specific threshold that says that you become a city strategy pathfinder with—



 
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