House of Commons - Public Accounts

Select Committee on Public Accounts Forty-Fourth Report

2 Achieving the benefits of the roll-out

10. By changing its business processes and working environment, Jobcentre Plus aimed to make financial savings, offer better customer service and increase the number of customers finding employment. The business case had stated that the new network would enable Jobcentre Plus to provide an additional 2.2 million work focused interviews each year and help over 140,000 extra people into employment. The roll-out, together with improved information-gathering and benefit processing systems, was expected to deliver savings of up to £1 billion a year.[11]

11. Jobcentre Plus is on track to achieve the financial savings set out in the business case. The Agency, together with HM Treasury and the Office of Government Commerce, reviewed the business case assumptions regularly. The Agency's current forecasts estimated the benefits to be £5.98 billion, up from £5.2 billion in 2002. The project should break even in 2012-13, much earlier than the original estimate (Figure 1). The process of rationalising the estate had generated cash saving of £135 million a year, but other benefits depended on helping more people into work.[12]

Figure 1: The net present value of the roll-out

Note: Figures are discounted from 2006 onwards according to HM Treasury guidance.

Source: 2006 Jobcentre Plus Business Case Review

12. The Agency is not able to substantiate how many extra people have been helped into work through the roll-out of new Jobcentre Plus offices. The Agency had helped six million people into work since its launch, but this success was attributable to a number of initiatives and other economic factors. Offering work focused interviews to groups such as lone parents and carers, who had not previously engaged with Jobcentre Plus, was expected to increase numbers entering employment. The Agency did not know, however, whether it had delivered the 2.2 million extra work focused interviews per year, principally with lone parents, assumed in the business case. In 2007-08 they delivered 1.9 million work-focused interviews for lone parents, and this total is lower than projected because the number of lone parents on Income Support fell by some 130,000 between 2002 and 2007. The Agency plans further research on the impact of the Jobcentre Plus business model on the employment market, and will adjust for changes in economic conditions.[13]

13. The new offices offered a better customer environment than the previous network, but other benefits had not been quantified. The use of online job points opened up more opportunities across the country to jobseekers than the previous paper card system, which had been largely limited to local jobs. Access to job points was available outside the Job Centre Plus office network at other public places and through home computers. Jobcentre Plus could not measure how individual elements of the project had contributed financial benefits apart from estates savings. Setting performance targets in areas such as IT and customer service might have enabled the Agency to better identify areas where the anticipated benefits may not have been realised.[14]

14. The Agency's new office network and customer service channels put it in a better position to respond to any potential economic downturn. The ability to provide more work focused interviews increased effective support for jobseekers. Job points, contact centres and online job search would also facilitate the handling of any increases in demand.[15]

15. The new network has transformed the way customers interact with the Agency. Prior to the launch of Jobcentre Plus, potential benefit claimants had to deal separately with social security offices and jobcentres. People claiming benefits other than Jobseeker's Allowance would not necessarily have been in contact with jobcentres or received help in finding employment. Under the new model, all benefit claimants were expected to make initial contact with Jobcentre Plus by telephone. The telephone contact centre gathered all relevant information and arranged an interview at a Jobcentre Plus office to discuss financial issues and action to help the claimant into work.[16]

16. Jobcentre Plus intends to handle a customer's claim during the first phone call, sparing customers the frustration of dealing with different staff who are unfamiliar with their circumstances. Calls to the contact centre are free from a landline, and customers calling from a mobile phone can request a call back. Calls can also be passed to an expert colleague if necessary, or a three-way conversation with HM Revenue and Customs can be established if the customer has a query about tax credits.[17]

17. Jobcentre Plus has introduced new self-service channels, such as web-enabled job search, to help claimants find work without the need to speak to an adviser. On average, the website receives more than one million 'hits' a week. The 9,000 touch-screen job search facilities in Jobcentre Plus offices and other locations have proved very popular, encouraging claimants to consider a broader range of jobs. People can also search for jobs from home. Jobcentre Plus is advertising these innovative services widely, but recognises that between 10 and 15% of customers will still prefer or need face-to-face contact with a Personal Adviser to help them find work. Jobcentre Plus staff are instructed not to turn away any customers who prefer face-to-face contact.[18]

18. 86% of customers surveyed by the Department in 2005 were very or fairly satisfied with Jobcentre Plus, an improvement on the old Jobcentres (80%) but less than the former Social Security offices (88%). Customers rated the service most highly on 'friendliness and politeness of staff' and 'finding out about vacancies' and least well on 'staff knowledge' and 'finding out about benefits'.[19] Satisfaction differs across client groups. The Agency believed that the least satisfied customers were those required to take the most responsibility under the current benefits regime. Jobseekers were the least likely group to be 'very satisfied' with either first contact services (28%) or the Financial Assessor meeting (37%). Customer satisfaction levels might have been affected by problems at the telephone contact centres in 2005. Jobcentre Plus had since established virtual contact centres to allow calls to be taken from anywhere in the UK and less than 10% of calls now go unanswered. The telephone service was the first entire government network to receive accreditation by the Contact Centre Association.[20]

19. More than half of customers say that Jobcentre Plus has increased their understanding of benefits, but the majority of customers do not feel more motivated to find a job. The Agency acknowledged that motivation varied across its client groups. The least motivated groups, such as carers, faced multiple barriers to work, and lone parents tended to become more motivated as their children grow older. Along with jobseekers, lone parents are the group most likely to be positive about the advice that they received from Jobcentre Plus.[21]

20. 74% of customers think that privacy is 'very important', but only 26% think that privacy at Jobcentre Plus offices is 'very good' and 36% considered it to be 'poor'. The Agency accepted that the standard office design could make it harder to offer privacy, especially in smaller offices, but staff were aware of the importance of privacy. Personal Advisers were expected to grant a private interview if a customer requested one, and most customers had the option of a telephone interview.[22]

21. The new offices are intended to provide a calmer and safer environment for customers and reduce the likelihood of incidents caused by abusive customers. Staff had been protected by screens in the old social security offices, but there had been few other measures to mitigate risks. Job Centre Plus offices are open plan and require more advanced customer handling skills. Jobcentre Plus has well-established processes for recording and learning from incidents in which staff are assaulted, and the Chief Executive takes a personal interest in any incidents affecting staff.[23]

22. The number of reported assaults has remained fairly consistent as staff have moved to the new open plan environment. In 2007-08, staff suffered 301 assaults (Figure 2). Inner city offices tend to experience the most incidents and so receive a commensurately higher level of risk control measures. In 2008, Jobcentre Plus introduced a new Safety Management System, based on Health & Safety Executive best practice, which they expect will improve reporting procedures and provide additional safety guidance to managers.[24]Figure 2: Assaults on Jobcentre Plus staff

YEAR	'MORE THAN CUTS & BRUISES'	'CUTS & BRUISES'	'LESS THAN CUTS & BRUISES'	TOTAL
2003-2004	14	55	148	217
2004-2005	7	47	248	302
2005-2006	11	53	222	286
2006-2007	17	97	244	358
2007-2008	16	60	225	301

Note: The table shows 'actual assaults' reported by Jobcentre Plus staff. It does not include assaults on contracted Security Staff because reporting practice amongst this group was sporadic until systems for accurate reporting were introduced in August 2005. Whilst prompt reporting is encouraged, the figures for 2007-2008 may yet increase slightly as late reports are received.

Source: Jobcentre Plus

23. The new office design allowed space to be used more efficiently, and provide for 20% expansion capacity, for example, if volumes changed.[25] The expansion capacity would facilitate implementation of the Employment and Support Allowance, which would require claimants to attend a work focused interview early in their claim. Further support would be provided by private and voluntary sector providers, as had been trialled in the Pathways to Work programme. Primary Care Trusts and labour market programme providers were also involved. Jobcentre Plus was well placed to deliver the reform, which would not have been so practical using the old style offices.[26]

24. Working in partnership with others helped the Agency to operate efficiently. In areas where the Agency had few customers, for example, they operated from outlets such as children's centres.[27] Other organisations, such as Her Majesty's Revenue and Customs, delivered services from the Jobcentre Plus office in some locations. The Agency was piloting more ambitious partnership working arrangements, such as a combined In and Out of Work process whereby customers would not have to contact Jobcentre Plus, Her Majesty's Revenue and Customs and the local authority separately about benefits and tax credits when they moved in and out of work.[28]

11 Q 48; C&AG's Report, para 1.5-1.8 Back

12 Qq 4-5, 81; C&AG's Report, paras 2.24-2.28, 3.25 Back

13 Qq 5-6, 49-51, 81; Ev nn; C&AG's Report, paras 1.8, 3.25, 4.29 Back

14 Q 7; C&AG's Report, para 3.25 Back

15 Qq 53, 61-62, 101 Back

16 C&AG's Report, paras 4.2-4.4 Back

17 Qq 65, 80, 94 Back

18 Qq 35-37, 78, 93 Back

19 C&AG's Report, para 4.6 Back

20 Qq 27, 65-68, 74; C&AG's Report, para 4.10 Back

21 Qq 69-70; C&AG's Report, para 4.18 Back

22 Q 57; C&AG's Report, para 4.11 Back