Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 100-108)

JOBCENTRE PLUS

30 April 2008

  Q100  Mr Williams: The new office design provides for a more efficient use of space which normally means less space per person working there. How far has this robbed you of flexibility in the future?

  Mrs Strathie: The front-of-house desk allocation model has maximised the space we have, because part of this model was to get rid of a lot of clutter and to streamline what was in the office and what it was best used for.

  Mr Davies: When we designed this we were very careful to ensure, particularly when we changed the modus operandi in the second year, that we had some rattle room and so the designs incorporated a 20% facility to uplift and improve the space, for example to put in more desks if volumetrics changed. I believe that future-proofing within reason was built into the thinking because it is impossible to gauge how the future will look. You must have a sense of future-proofing, which I believe we did.

  Q101  Mr Williams: If for example there were a significant rise in unemployment—that is not envisaged at the moment and obviously the opposite is intended—would that present you with a problem with space?

  Mrs Strathie: If we think that business volumes are driven by customers coming on to benefit we then require more support if more customers stay on benefit. The first point would be to handle an increased business volume and telephone calls. Because we have built a virtual network we can handle substantial increases in volumes. My view is that we would push on with our work-focused intervention regime because, more than ever, we would want to move people even quicker between jobs.

  Q102  Mr Williams: Take the new approach to Incapacity Benefit. Do you face any logistical problems from the extra work that this imposes on your offices?

  Mrs Strathie: In terms of what happens in the office, there is a first intervention with the customer. I referred to the 40% that Jobcentre Plus has led which is now for me primarily the benchmark for the private and voluntary sector to beat. We will compare those over a period of time. We lead that with the personal advisory service, but we are doing it with our local PCTs and a lot of labour market programme providers, so it is not all happening in our Jobcentres.

  Q103  Mr Williams: To what extent is that the phenomenon I was describing? It says in paragraph 4.33: "In some areas, rather than looking to Jobcentre Plus offices to provide extra services, it may be more efficient to house Jobcentre Plus services in another office." Why would it be more efficient if you had adequate space in the present one?

  Mrs Strathie: As the world and other public services have changed we want to maintain a high level of customer service and one that meets the local requirement. Jobcentre Plus does not deliver everything itself; it contracts with others and also works in collaboration with local partners. Where you have high density population you will expect a large Jobcentre Plus presence and we will deliver mainly from our offices, but when we get into other locations where we have very few customers and calls we operate alongside other partners in premises. The flexible delivery model that has emerged from this is a range of local solutions depending on the need. We mentioned Children Centres. Although we have been very focused in our active policies with lone parents we recognise that given the challenge of helping children out of poverty we need to help parents, not just lone parents. We can reach many parents who do not come through our doors or our telephone channel through Children Centres. Those are just some examples of how we operate differently. I very much hope that we shall now be able to move forward with local authorities and partnerships to develop that range of inreach and outreach so we have the best of central government delivering a welfare regime and the best of local community partnerships to delivery what that community needs.

  Mr Williams: If I may make just one favourable observation, I have been very impressed by the responses I have received from your services in my area and am very appreciative of them.

  Q104  Keith Hill: I think I am right in saying that at least historically the British economy has been characterised by a fairly low level of labour mobility and labour mobility is linked strongly to housing. I believe I am also right in saying that there has been at least one attempt to link job opportunities with housing opportunities or vacancies through Jobcentre Plus. Do you think that is a good idea? Is there any intention to renew that project?

  Mrs Strathie: We are working on a number of possibilities in terms of co-funding and the pooling of resources to look at that. What do we know at the moment? We know that those customers with very basic skills are those who have least benefited over the past 10 years. We also know that many of those customers live in social housing. We do not know the relationship between the two, but we know that if we want to reach the hardest to help and move them from that non-work state into work and then better skills we need to work very closely with those who make decisions on housing. I am working with the London Borough of Lambeth in championing its Local Authority Agreement so we can look at workers' former welfare in relation to its housing policy. That is just one example and it is taking place in lots of places across the country. I do not know where that will take us but we are definitely working very closely together.

  Q105  Keith Hill: I am delighted that you have mentioned your work with Lambeth since I happen to represent the south of that borough. I am also an occasional visitor to the Jobcentre Plus in Station Approach along with a succession of heads of state and international delegations that seem to be permanently ensconced in that particular building.

  Mrs Strathie: Lambeth was our first pathfinder in London and it is a good basis for us to look at where we started, where we have come from and how we go on to improve the service.

  Keith Hill: I was on the board of the first pathfinder and it is my impression that Jobcentre Plus generally speaking has developed a very open and transparent relationship with politicians. That has probably contributed to your success and the esteem in which you are held.

  Q106  Mr Davidson: I would not stress that point since I do not have one in Pollok yet. It is the only one in the known universe, if I remember correctly. I want to pick up the point about the Social Fund which is one of the issues about which a number of my constituents speak to me. I have never been entirely clear whether or not the reason why many of my constituents do not get what they would like from the Social Fund is that they do not meet the criteria or you are running out of money. If at the end of the year you end up with unspent money in the Social Fund is that because there are not enough people to come forward to apply for it or, as is my impression, is it because the budget is too tight? Following that, can you give me an indication of whether or not there is a formula that determines how much individual offices are allocated? In the past I was told that particular offices had run out of their allocations at certain points during the year and therefore there would be no further Social Fund loans made available until the start of the new financial year.

  Mrs Strathie: Starting at the end of that, I remember those days. First, there is no question of the Social Fund not being in budget. We run it on a national basis and so there is no money left here. Those days are gone. There are very strict criteria. Remember that crisis loans under the Social Fund were designed 20 years ago for people in extremely vulnerable circumstances. That means Secretary of State directions, Social Fund commissioners and the independent review service guide us on when we pay and when we do not. Obviously, there is an element of discretion in that and approximately half in any part of the country are allowed and half not. The Social Fund has several different strands to it, not just crisis loans.

  Q107  Mr Davidson: It is not the case that people would be refused loans because you had run out of money?

  Mrs Strathie: Absolutely not.

  Q108  Chairman: Mrs Strathie, that concludes our hearing. I thank you on behalf of the Committee for your commitment and that of your colleagues over many years. To be fair to fast stream entrants, I was talking to Sir Leigh Lewis earlier this week. He said there was an increasing tendency among fast stream entrants in his department to want to go into the management of projects rather than traditional policy formulation, so we are making progress in what the Committee wants.

  Mrs Strathie: I think we are. We certainly now set requirements in DWP for operational delivery postings, and we could point to a number of fast streamers who have come to work for us in Jobcentre Plus in operational posts and then gone on to successful careers afterwards.

  Chairman: If as Mr Davidson says all people who went to public school and Oxbridge had brains and no sense it would appear to be a criticism of the immediate past Prime Minister to which I certainly would not subscribe.




 
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