Press Release - The roll-out of the Jobcentre Plus office
network
22 February 2008
The Jobcentre Plus programme rolled out a network of over 800
offices, combining the functions of the former jobcentres and
social security offices, and was completed for £314 million less
than the original £2.2 billion budget according to a National Audit
Office report released today.
The project was well managed, particularly the procurement
aspect, where between £120 million and £140 million worth of
savings were made. The project has clear lessons for other public
sector procurement programmes.
Most of the offices were rolled out within four years as
originally planned, although factors outside the control of the
project team meant 80 offices were delivered in an additional fifth
year of construction. The NAO has found that whilst this delay had
an impact on the speed of improvements to customer services
locally, it did not have any major operational or financial affects
on the programme.
Operating out of fewer offices has released about 20 per cent of
the Jobcentre Plus estate, resulting in an overall saving in
running costs of £135 million a year by 2006-07. The total cost so
far of disposing of buildings is £42 million, estimated to rise to
£56 million once this process is complete. Two thirds of this cost
consists of payments to Land Securities Trillium, the PFI
contractor which managed the property on behalf of the public
sector, to compensate for the reduced number of properties they
manage.
Overall, customer satisfaction with the new network is high with
the majority (86 per cent) of people who use the new Jobcentre Plus
fairly or very satisfied with the results. However, in some others
respects the quality of customer service may initially have
reduced, particularly for customers unable to reach contact centres
by telephone.
Tim Burr, head of the National Audit Office, said
today:
“My report recognises the considerable achievement that
has been made delivering over 800 centres to a high quality
standard, under budget. The project team controlled costs
effectively and achieved savings against the budget – for example
by introducing better procurement arrangements. There are lessons
here for other Government departments undertaking major procurement
projects.”
Notes for Editors:
- The Jobcentre Plus roll-out project involved replacing around
1,500 jobcentres and social security offices with around 800
combined Jobcentre Plus offices. The agency also operates 31
contact centres, and has transferred the processing of benefit
claims from Jobcentre Plus offices to 79 centralised processing
centres known as Benefit Delivery Centres.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 11/08
All enquiries to Phil Groves, NAO Press Office: Tel: 020 7798
5339
Mobile: 07770 678477