Press Release - Getting it right, putting it right: Improving
decision-making and appeals in social security benefits
7 November 2003
Following reforms to decision-making and the appeal process in
social security benefits, introduced in 1999 by the Department for
Work and Pensions, the number of appeals against decisions has
fallen overall by around 15 per cent and waiting times for appeal
hearings have been cut. Since the reforms, decision-making
performance for some benefits, but not others, has shown
improvement.
The Department make tens of millions of decisions a year about
eligibility for a variety of benefits. Results for 2000-01 and
2001-02 (published in 2003) indicate that, more than 90 per cent of
payments checked were correct but there were errors in
around a fifth of all decisions, for example where the
decision-maker had not obtained all the necessary evidence or had
not correctly determined the facts of the case. In around 230,000
cases a year around one per cent of decisions - customers disputes
end in an independent tribunal and some 40 per cent of these cases
are changed in favour of the customer.
The NAO has found examples of good local practice in
decision-making and a number of improvement initiatives. The
Department are meeting demanding timescales for clearing initial
claims, but it takes on average 26 weeks to finalise an appeal,
despite the Appeals Service and Social Security Commissioners
having speeded up their parts of the process. The Department have
introduced potentially effective arrangements for monitoring and
reporting on decision making standards but the information reported
so far has been inadequate in the level of detail and
timeliness.
The NAO report examines in more detail two major benefits
Disability Living Allowance and Jobseekers Allowance although
findings and recommendations are relevant to the broader range of
benefits. In Disability Living Allowance, claimed by some
2.4 million people, decision-making accuracy has fallen in the
first two years since the changes; 8 per cent of decisions lead to
an appeal and the proportion of appeals decided in favour of the
customer (currently more than half of the 90,000 appeals each year)
is increasing. The Department are piloting a range of improvements
including tailoring claim forms, improved decision letters and
changes to medical evidence requirements.
Jobseekers Allowance is claimed by around 900,000
people who are not working. Decision making accuracy improved in
the first two years, and a high proportion of payments are
accurate. Where decision-making errors occur, these are often
caused by a lack of evidence and there are also problems with
communicating the complex rules and reasons for decisions
adequately to customers. The benefit is administered through a
network of over 1,400 offices to provide flexible local service,
but the high degree of local autonomy combined with a lack of
minimum standards has led to variations in approach around the
country. The newly reorganised Jobcentre Plus aims to provide a
seamless national service, and is planning efficiency initiatives
which we estimate could save 3 million a year through reorganising
and improving decision-making alone.
The Department have taken important steps to improve the quality
of decision-making and appeals, but they need to do more to get
decisions right first time and put right errors without the need
for customers to go to an appeal tribunal. Inadequate IT and
complex benefit regulations remain obstacles to improvements in the
medium term.
The NAO highlights a number of actions which the Department can
take now. These include increasing the proportion of decisions
which are pre-checked, focusing on where errors are most often
found; and setting minimum standards for the process of looking
again at decisions without the need for appeal (reconsiderations)
including a maximum waiting time and a stipulation that decisions
are re-examined by a different decision-maker.
There is scope for the Department to work towards saving an
estimated total of 8 million per year on administering Jobcentre
Plus benefits and Disability Living Allowance if it could get more
decisions right or put them right without the need for costly
appeals. Indirect savings from increasing the credibility of the
social security system could also result, although these are more
difficult to estimate.
Sir John Bourn said today:
"While more than 90 per cent of payments are accurate,
more than a fifth of the Department of Work and Pensions thousands
of decisions each day on benefits contain errors. Although the
number represents less than one per cent of decisions, a quarter of
a million people a year go to an appeal tribunal and 40 per cent of
these cases are changed in favour of the customer. Customers are
also having to wait too long for the outcome. The Department could
not only reduce the number of cases where customers have to go
through stressful appeals but also save money for the taxpayer, if
they got more decisions right first time and put right errors
effectively.
"The Department should make improving decision-making a
priority in their ongoing programme of organisational change. By
focusing more on good quality evidence and effective communication,
and setting minimum service standards, they can help to ensure that
customers across the country know what to expect from the system
and have increased confidence in it."
Notes for Editors
- Decision-making accuracy refers to whether the right
decision was made, on the basis of sufficient evidence,
investigation of facts and interpretation of the law. Payment
accuracy refers to whether or not the correct amount of
benefit has been correctly calculated and subsequently paid.
- The Comptroller and Auditor General reports annually on the
Secretary of States reports on decision making standards which are
published by the Department for Work and Pensions. The first two
such reports were published in July 2002 (HC 1017) and July 2003
(HC 880).
- Disability Living Allowance is a non-means-tested,
non-contributory benefit, paid as a contribution towards the extra
costs associated with disability. Entitlement is based on a persons
care and mobility needs. It is administered by the Disability and
Carers Service. Jobseekers Allowance is a benefit for
those who need financial support because of unemployment. It is
administered by Jobcentre Plus. The NAO report does not cover
Housing Benefit, Council Tax Benefit or tax credits, which are not
administered by the Department for Work and Pensions.
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copiescan
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 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 66/03
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