DWP has not reduced the mistakes made by staff processing benefits. In 2009-10 it overpaid an estimated £1.1 billion and made underpayments of £500 million. However, the scale of the challenge facing the Department should not be underestimated.
The C&AG has qualified the Social Fund Account for the seventh consecutive year. The account has been qualified because of material levels of error in discretionary awards, and in Funeral Expense Payments. He has also qualified, for the first time, his opinion on Sure Start Maternity Grants.
Changes made in 2007-08 to public service pension schemes are on course to deliver savings and stabilise pension costs. However the value for money of the changes cannot be demonstrated in the absence of a strategic assessment of their long term impact on staff motivation and retention.
DWP does not yet have enough evidence to demonstrate that its activities to reduce the cost of mistakes by customers have been value for money. Although mistakes are difficult to detect, correct and prevent, the scale of overpayments and underpayments demonstrates a clear need for improvement.
This memorandum has been prepared for the Scottish Affairs Committee and provides an overview of the Health and Safety Executive’s work in Scotland.
The Comptroller and Auditor General has today reported on the Child Maintenance and Enforcement Commission’s Client Funds Account 2008-09 and 2009-10.
The Department for Work and Pensions will have to make rapid progress in reorganising the way it operates if it is to meet its target of cutting costs by £20 billion in four years while achieving substantial reform of the welfare system.
The C&AG has qualified the Social Fund Account for the eighth consecutive year. The account has been qualified because of material levels of error in discretionary awards, which include Budgeting Loans, Crisis Loans and Community Care Grants, and in Funeral Expense Payments. He has also qualified, for the first time, his opinion on Cold Weather Payments.
The NAO has published its report on the 2010-11 accounts of the Department for Work and Pensions.
It will be difficult for government departments to achieve value for money from means-tested benefits unless government understands the impacts of means testing, learns from past experience and improves coordination between different benefits.
