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MPs raise concerns over DWP cuts

The public accounts committee has raised concerns over the Department for Work and Pensions plan to cut running costs by £2.7bn by March 2015.

The Spending Review Settlement requires the DWP to reduce running costs by £1.45bn to £6.2bn in 2011-2012 and by £2.7bn to £5.5bn by March 2015.

The DWP has outlined a series of measures it will take to reduce costs which include rationalisation of corporate services such as finance, legal services and human resources as well as 8,000 staff cuts through Jobcentre Plus.

The Public Accounts Committee said in its report “Reducing Costs in the Department For Work and Pensions” the DWP has been slow to determine how it will operate in the future and sustain efficiency after staff cuts.

The report says: “The department should develop and apply a methodology for measuring the impact of running cost reductions on benefits and pensions expenditure. The Department and the Treasury should clarify how any variances in the cost of benefits and pensions would be funded.”

As a result, the committee has asked the department to develop a “clear, fully-costed model of how it expects to operate in the future.”

Further concerns have been raised over the lack of transparency in the DWP plans for spending and cost reductions and has been asked by the committee to publish baseline costs and regular updates on progress in securing cost reductions each year.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I heard a radio broadcast this morning that part of the DWP’s plan involved requiring more people to go online and claim benefits etc. as only 17% of claimants currently use this method.
    As a person who was unemployed for some months, I can assure you that the provision of online services into my home was a complete non starter, just not afforable! An expense that on £68.00 income, running a home, would have been considered a luxury. I know that librarys provide a service, however there is very often a charge for this service, again every £1.00 counts when on such low benefit rates, again not affordable. With unemployment rising and expected to get worse before it gets better, why on earth take out so many staff from Jobcentre’s? A recipe for yet more disaster and a great concern for all those who often from no fault of their own end up claiming jobseekers allowance and other benefits.

  2. Just more proof of the assault on the vulnerable to pay for the disgusting and unpunished acts of the stinking, greedy bankers and their completely incompetent and useless ‘regulator’, the FSA., and let’s not forget the Treasury, to whom the FSA is supposedly answerable
    With all their collective intelligence, they couldn’t regulate an oven.
    Where were the police when the above ran amok with the country’s finances ? They caused millions of times more damage than the looters etc., yet walk free and without any attempt at bringing THEM to justice. What T.F. is this country REALLY about ?

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