The Minister of State, Department for Work and Pensions (Mr Mark Hoban):
I congratulate the right hon. Member for Wentworth and Dearne (John Healey)
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on securing this debate. He focused most of his remarks on 0845 numbers, but they are not the only numbers the Department uses. As I explain, I will give a more balanced picture of the telephone situation than the one he gave in what I thought was a selective presentation of the information.
The Department has set out clear principles for the provision of telephone services. Indeed, they were set out when the right hon. Gentleman was a member of the previous Government in 2008. There are four clear principles. First, calls to claim benefits should be free to the customer. Secondly, there should be a consistent approach across the Department, both for clarity and equity. Thirdly, the approach should make sense from the customer’s point of view, rather than being driven by product lines or organisational structure. Fourthly, it must be sustainable in terms of future business models and changes in the telephony market.
To enact those principles, calls to claim benefit are free and utilise 0800 numbers. The right hon. Gentleman said that crisis loan calls were not free, but they are. Other calls that typically take less time to resolve are made to 0845 numbers. Their use means that the customer is charged the same amount regardless of their geographical location or that of the DWP office they are calling. The exact cost will vary depending on the caller’s phone number and the service provider. I will give more detail on that later.
The Department provides customers with a facility to make a free telephone call to claim the state pension, pension credit, jobseeker’s allowance, employment and support allowance, crisis loans and other emergency payments. These calls are free of charge from all major landline providers. The right hon. Gentleman talked about the Ofcom changes making it free to call these numbers from a mobile. The Department has already made that change. As a result, eight of the UK’s largest mobile phone operators—O2, Orange, Vodafone, T-Mobile, Hutchison 3G, Tesco Mobile, Virgin Mobile and Cable and Wireless—allow their customers to make those calls for free already.
The Department uses 0800 and 0845 numbers, rather than the geographical 01 and 02 numbers, to enable the operation of a virtual telephony network across the UK. This network has been in place for working-age benefits and crisis loans since 2008, and allows callers to be directed to the next available adviser with the appropriate skills to answer a customer’s inquiry. For example, someone ringing from their home in Rotherham or Barnsley to make a claim for jobseeker’s allowance might be connected to an adviser in Dundee, Derby or Poole. They will be directed to the first adviser available, rather than left hanging on the telephone waiting for the call to be answered in their local benefit or contact centre. Furthermore, should that person wish to make an inquiry about their benefits later on, that call would be answered by the first available adviser in a centre, wherever that centre might be, rather than left waiting for someone in their local centre to answer.
The use of these numbers gives the Department the flexibility to manage the peaks and troughs of the different types of inquiries it receives nationally. Calls can be routed to additional centres, as and when volumes require, and advisers are trained to handle more than one type of inquiry. This method of handling customer calls has proved to be much more efficient than the
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previous system, under which calls were directed to specific offices without the facility to reroute them to meet customer demands. It is designed to help facilitate and speed up the response to telephone calls. The use of geographic numbers would undermine the ability of the business to manage effectively the significant volume of calls received each year, and would result in a less efficient process.
Let me deal with the issue of costs. Charges for 0845 numbers vary depending on the service provider, personal contract and time of day a call is made. As a result, the costs to consumers are beyond DWP control. About 75% of calls to the DWP originate from landlines. If calls to 0845 numbers fall within the terms of a customer’s call plan, they are free. BT, the largest landline provider, charges 7.95p a minute, plus a 13.1p connection fee, where the call is made outside the inclusive plan. The right hon. Gentleman implied, without really making it explicit, that he thought the Government were benefiting from the cost of 0845 calls. We do not receive the termination payment. Other major landline providers charge between 6.63p and 10.22p a minute—also with connection charges—while the charge varies for calls from mobiles.
The right hon. Gentleman also raised the issue of 03 numbers. Depending on the service provider and the contract or call plan, many customers would currently pay more to contact the DWP if 0845 numbers were simply replaced by 03 numbers, so that would not be an easy solution to the problem. He needs to recognise that the situation is more complex than that.
John Healey: The caller pays the termination charge, so if the Government do not receive it, and most organisations using the service receive the access charge component, who receives the value of the termination charge?
Mr Hoban: The people or organisations hosting those 0845 numbers are the ones who earn the components of those calls.
Let me turn to the duration of calls. In line with the departmental principles that I outlined at the outset, calls to claim benefit should be free, because they are longer on average than calls to other numbers. For example, between April and October the average duration of calls by working-age customers to our free 0800 numbers was 25 minutes and 28 seconds, while the average duration of calls to our 0845 numbers was seven minutes and 42 seconds. We have sought to use our resources to ensure that those making the longest calls—mainly to claim benefits—can make them for free. Again, that is an important distinction that we need to recognise. Duration of calls is a factor that we have taken into account for those lines used to make claims, because there can be quite lengthy discussions between DWP claimants and call centre agents.
We have touched on the cost of 0845 calls and what would happen if we replaced them. The estimate is that replacing 0845 numbers with a free service would cost in excess of £12 million, because of changes to contracts and significant migration costs, including changes to branding and marketing. It is unlikely that mobile phone operators would agree to extend the scope of the current agreement for free mobile calls to the DWP’s 0800 numbers to cover such an increase. The right hon.
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Gentleman talked about the number of unemployed people in his constituency. Spending £12 million on migrating to 0800 numbers would mean £12 million less to spend on the Department’s other activities. He is a former Treasury Minister and he will know about the priorities and difficult choices that Governments have to make about where money is spent. If we spend more money on free telephone calls, someone else somewhere in the system has to bear that cost. I want to ensure that as much of our taxpayers’ money as possible is spent on getting people into work, rather than on looking at further changes to the telephony service, particularly given that the longest calls made by people claiming benefits are to freephone numbers.
The right hon. Gentleman was slightly dismissive of the mitigation measures we have put in place to help customers. We will offer to terminate a call and ring the customer back if they are concerned about the cost. That service is available, and I think it is well known. I would encourage people who are concerned about the cost to use that service.
We also provide customer access phones in Jobcentre Plus. I suspect that if they were put in a soundproof booth in the corner, the right hon. Gentleman would accuse us of hiding them from claimants. I have known him long enough to suggest that that might be a line of attack that he might take. We ensure that the phones are visible and that they can be used. As part of our
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strategy, we are also encouraging more people to use online facilities to seek information and guidance. We have launched a new online service for jobseekers this week, which will help to improve the quality of service. We are trying to increase the number of ways in which claimants can contact the DWP without necessarily having to use the telephone service, and as we continue to develop our digital strategy, that will become an important part of how we deliver benefits. It is also a key part of universal credit.
In conclusion, we recognise that the issue about customer waiting times is an important one. That is why we have recruited more staff and trained them on 0845 benefit inquiry lines. The working age and pensions service lines have a central network management team that can move work around the network in real time to bring a balance of service delivery on all service lines. We are also trying to improve our call answering metrics. In line with the principles set out by the previous Government, which we have followed, we have ensured that calls in which people are making claims are free, to 0800 numbers, and that customers know that there are alternatives out there if they feel that the cost of calling an 0845 number is prohibitively expensive. We are taking the right action, and we want to continue to promote such alternatives to our claimants.
7.31 pm
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Deferred Division
That this draft Benefit Cap (Housing Benefit) Regulations 2012, which were laid before this House on 16 July, be approved.
The House divided:
Ayes 283, Noes 203.
AYES
Adams, Nigel
Aldous, Peter
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Steve
Baldry, Sir Tony
Baldwin, Harriett
Baron, Mr John
Bebb, Guto
Bellingham, Mr Henry
Benyon, Richard
Berry, Jake
Bingham, Andrew
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Mr Crispin
Boles, Nick
Bone, Mr Peter
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brake, rh Tom
Bray, Angie
Bridgen, Andrew
Brine, Steve
Brooke, Annette
Browne, Mr Jeremy
Bruce, Fiona
Buckland, Mr Robert
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burt, Lorely
Byles, Dan
Cameron, rh Mr David
Campbell, rh Sir Menzies
Carmichael, rh Mr Alistair
Carmichael, Neil
Carswell, Mr Douglas
Cash, Mr William
Chishti, Rehman
Chope, Mr Christopher
Clappison, Mr James
Clark, rh Greg
Clegg, rh Mr Nick
Clifton-Brown, Geoffrey
Collins, Damian
Colvile, Oliver
Cox, Mr Geoffrey
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davies, Glyn
Davies, Philip
Dinenage, Caroline
Djanogly, Mr Jonathan
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan, rh Mr Alan
Duncan Smith, rh Mr Iain
Dunne, Mr Philip
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Fallon, rh Michael
Farron, Tim
Featherstone, Lynne
Field, Mark
Foster, rh Mr Don
Fox, rh Dr Liam
Francois, rh Mr Mark
Freer, Mike
Fuller, Richard
Garnier, Mark
Gauke, Mr David
Gibb, Mr Nick
Gillan, rh Mrs Cheryl
Glen, John
Goldsmith, Zac
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hancock, Matthew
Hands, Greg
Harris, Rebecca
Hart, Simon
Haselhurst, rh Sir Alan
Heald, Oliver
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Hermon, Lady
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Hopkins, Kris
Horwood, Martin
Howarth, Sir Gerald
Howell, John
Hughes, rh Simon
Huhne, rh Chris
Hunt, rh Mr Jeremy
Hunter, Mark
Huppert, Dr Julian
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kennedy, rh Mr Charles
Kirby, Simon
Knight, rh Mr Greg
Kwarteng, Kwasi
Laing, Mrs Eleanor
Lansley, rh Mr Andrew
Latham, Pauline
Laws, rh Mr David
Leadsom, Andrea
Lee, Dr Phillip
Lefroy, Jeremy
Leigh, Mr Edward
Leslie, Charlotte
Lewis, Brandon
Lewis, Dr Julian
Liddell-Grainger, Mr Ian
Lilley, rh Mr Peter
Lloyd, Stephen
Lopresti, Jack
Loughton, Tim
Luff, Peter
Lumley, Karen
Macleod, Mary
Maude, rh Mr Francis
Maynard, Paul
McCartney, Jason
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
Menzies, Mark
Mercer, Patrick
Metcalfe, Stephen
Miller, rh Maria
Mills, Nigel
Milton, Anne
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, David
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Munt, Tessa
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
O'Brien, Mr Stephen
Offord, Dr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, Richard
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, Mike
Penrose, John
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Pincher, Christopher
Poulter, Dr Daniel
Prisk, Mr Mark
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Reckless, Mark
Redwood, rh Mr John
Rees-Mogg, Jacob
Reevell, Simon
Reid, Mr Alan
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Rutley, David
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shapps, rh Grant
Sharma, Alok
Shelbrooke, Alec
Shepherd, Mr Richard
Simpson, Mr Keith
Smith, Miss Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stanley, rh Sir John
Stephenson, Andrew
Stevenson, John
Stewart, Bob
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stuart, Mr Graham
Stunell, rh Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swinson, Jo
Swire, rh Mr Hugo
Syms, Mr Robert
Tapsell, rh Sir Peter
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Uppal, Paul
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Robin
Wallace, Mr Ben
Ward, Mr David
Watkinson, Angela
Weatherley, Mike
Wharton, James
Wheeler, Heather
White, Chris
Whittingdale, Mr John
Wiggin, Bill
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Willott, Jenny
Wilson, Mr Rob
Wright, Jeremy
Wright, Simon
Zahawi, Nadhim
NOES
Ainsworth, rh Mr Bob
Alexander, rh Mr Douglas
Ali, Rushanara
Allen, Mr Graham
Anderson, Mr David
Ashworth, Jonathan
Bain, Mr William
Banks, Gordon
Beckett, rh Margaret
Begg, Dame Anne
Benn, rh Hilary
Berger, Luciana
Blenkinsop, Tom
Blomfield, Paul
Blunkett, rh Mr David
Bradshaw, rh Mr Ben
Brennan, Kevin
Brown, Lyn
Brown, rh Mr Nicholas
Brown, Mr Russell
Bryant, Chris
Byrne, rh Mr Liam
Campbell, Mr Alan
Campbell, Mr Gregory
Campbell, Mr Ronnie
Caton, Martin
Chapman, Jenny
Clark, Katy
Clarke, rh Mr Tom
Coaker, Vernon
Coffey, Ann
Connarty, Michael
Cooper, Rosie
Cooper, rh Yvette
Corbyn, Jeremy
Crausby, Mr David
Creagh, Mary
Creasy, Stella
Cruddas, Jon
Cryer, John
Cunningham, Alex
Cunningham, Mr Jim
Cunningham, Sir Tony
Curran, Margaret
Dakin, Nic
Danczuk, Simon
Darling, rh Mr Alistair
David, Wayne
Davidson, Mr Ian
De Piero, Gloria
Denham, rh Mr John
Dobbin, Jim
Docherty, Thomas
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Donohoe, Mr Brian H.
Doran, Mr Frank
Doughty, Stephen
Dowd, Jim
Doyle, Gemma
Dromey, Jack
Dugher, Michael
Durkan, Mark
Eagle, Maria
Efford, Clive
Ellman, Mrs Louise
Esterson, Bill
Fitzpatrick, Jim
Flello, Robert
Flint, rh Caroline
Fovargue, Yvonne
Francis, Dr Hywel
Gapes, Mike
Gardiner, Barry
Gilmore, Sheila
Glass, Pat
Glindon, Mrs Mary
Godsiff, Mr Roger
Goggins, rh Paul
Goodman, Helen
Greatrex, Tom
Green, Kate
Greenwood, Lilian
Griffith, Nia
Gwynne, Andrew
Hain, rh Mr Peter
Hamilton, Mr David
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Mr Tom
Healey, rh John
Hendrick, Mark
Hilling, Julie
Hodgson, Mrs Sharon
Hoey, Kate
Hopkins, Kelvin
Hosie, Stewart
Howarth, rh Mr George
Hunt, Tristram
Jamieson, Cathy
Johnson, Diana
Jones, Graham
Jones, Susan Elan
Jowell, rh Dame Tessa
Kaufman, rh Sir Gerald
Kendall, Liz
Khan, rh Sadiq
Lavery, Ian
Lazarowicz, Mark
Leslie, Chris
Lewis, Mr Ivan
Long, Naomi
Love, Mr Andrew
Lucas, Caroline
MacNeil, Mr Angus Brendan
Mactaggart, Fiona
Mahmood, Mr Khalid
Malhotra, Seema
Mann, John
McCabe, Steve
McCann, Mr Michael
McCarthy, Kerry
McClymont, Gregg
McCrea, Dr William
McDonagh, Siobhain
McDonnell, Dr Alasdair
McDonnell, John
McGovern, Jim
McGuire, rh Mrs Anne
McKechin, Ann
McKenzie, Mr Iain
McKinnell, Catherine
Meacher, rh Mr Michael
Meale, Sir Alan
Mearns, Ian
Miliband, rh Edward
Miller, Andrew
Mitchell, Austin
Moon, Mrs Madeleine
Morrice, Graeme
(Livingston)
Mudie, Mr George
Munn, Meg
Murphy, rh Paul
Murray, Ian
Nash, Pamela
O'Donnell, Fiona
Onwurah, Chi
Osborne, Sandra
Owen, Albert
Pearce, Teresa
Perkins, Toby
Pound, Stephen
Powell, Lucy
Raynsford, rh Mr Nick
Reed, Mr Jamie
Reynolds, Emma
Reynolds, Jonathan
Riordan, Mrs Linda
Ritchie, Ms Margaret
Robertson, John
Robinson, Mr Geoffrey
Rotheram, Steve
Roy, Lindsay
Ruane, Chris
Ruddock, rh Dame Joan
Sarwar, Anas
Sawford, Andrew
Shannon, Jim
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheridan, Jim
Shuker, Gavin
Simpson, David
Skinner, Mr Dennis
Slaughter, Mr Andy
Smith, rh Mr Andrew
Smith, Nick
Straw, rh Mr Jack
Stringer, Graham
Stuart, Ms Gisela
Sutcliffe, Mr Gerry
Tami, Mark
Teather, Sarah
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Twigg, Derek
Umunna, Mr Chuka
Vaz, rh Keith
Walley, Joan
Watson, Mr Tom
Watts, Mr Dave
Weir, Mr Mike
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Williams, Hywel
Williamson, Chris
Wilson, Sammy
Winnick, Mr David
Winterton, rh Ms Rosie
Wishart, Pete
Wright, David
Wright, Mr Iain
Question accordingly agreed to.
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