(9 years, 8 months ago)
Commons ChamberAt what may well be my right hon. Friend’s last appearance in the House of Commons at the Dispatch Box, may I remark that his five-year term as Minister for the Cabinet Office in charge of civil service policy for the Government will have truly left its mark not just on the civil service but on this House? His tenacity, commitment and sincerity are of great credit to him.
I am extremely grateful to my hon. Friend for his kind remarks. I pay tribute to him for the way in which he and his Committee have held us to account for what we do. He has done that consistently and persistently. It has not always been comfortable, but that is what the House of Commons is for.
(9 years, 11 months ago)
Commons ChamberAlthough transferring civil servants to other locations and downsizing are necessary, do they not make the whole business of managing the personnel in the civil service much more difficult? Will my right hon. Friend give full backing to the new chief executive of the civil service to strengthen the data held by the Cabinet Office on the skills and capabilities among civil servants so that we do not disrupt the training and career paths of the people on whom we depend?
As my hon. Friend well knows, the quality of data in central Government that we inherited was not good. It is getting better, but there is much more that needs to be done. The new chief executive of the civil service, who has got off to a terrific start, has a lot of experience in the management of big, complex dispersed organisations from his business background and I am sure that he will want to discuss that further with my hon. Friend.
(10 years, 8 months ago)
Commons ChamberI am grateful for the hon. Lady’s intervention, and I can in fact inform the House that the Public Administration Select Committee is doing something very specifically on the impartiality of the civil service—and we still only have one civil service in the United Kingdom—in respect of the conduct of referendums. I am going to avoid being distracted by that topic, however.
On a pure point of fact, since 1922 the civil service in Northern Ireland has been separate.
Touché, as they say. I am most grateful for that information. I am sure it would have been in the Government’s evidence to our Committee.
Before I continue, I draw the House’s attention to the names on motion 36 under “Remaining orders and notices” in today’s Order Book. Motion 36 would set a more limited remit than we originally proposed and determine the Commons membership of the commission on the civil service. The other place indicated last week that it would reciprocate and I can inform the House that the former Lord Justice General of Scotland and the former Deputy President of the Supreme Court, Lord Hope of Craighead, has indicated that he would chair this commission if invited to do so. The names of former Secretaries of State, former Ministers and the clear majority of chairs of Select Committees on our motion, along with the support of the other place, represent a real and powerful cross-party consensus that would give civil service reform the impetus and urgency it needs.
As we consider accountability, trust and leadership at the top of Government, it is important to understand what extraordinary demands we place on Ministers and senior officials. Ministers are accountable to Parliament for the performance of their Departments, like directors to their shareholders, but unlike in almost any other walk of life they have to rely on people they do not appoint and cannot easily remove. In addition, today’s Ministers feel accountable for a system that has become somewhat unaccountable.
PASC has watched the Government’s policy on the civil service evolve. To start with there was much talk about change in Government but no plan for how change would be led and implemented. In our 2011 report “Change in Government: the agenda for leadership”, PASC recommended that the Government should formulate a comprehensive change programme articulating what the civil service is for. The civil service reform plan of 2012 indicates that the experience of Ministers in Government has had an impact on their thinking about the civil service, but it does not meet our recommendation.
(10 years, 9 months ago)
Commons ChamberI will look at the point that the right hon. Gentleman raises. The truth is that in the last year for which the commissioner for public appointments has published figures on public appointments, actually slightly more appointees declared a Labour party affiliation than a Conservative party affiliation, but for appointments generally we seek people with some commercial experience of running large organisations who can bring to bear the same desire for efficiency and eradicating waste as we are showing in central Government.
Will my right hon. Friend join me in welcoming the fact that the rather artificial and silly row about Conservatives being appointed to public bodies has now thankfully come to an end? Also, I inform him and the House that the Public Administration Select Committee is going to have a look at the relationship between public bodies and their sponsoring Departments, to see how they perform in bad times as well as good, how they deal with crises and how accountability should be improved.
I of course welcome that inquiry. This is an important issue that should be kept under considerable review. Where the Executive and Parliament forgo the ability for a public activity to be directly accountable to Parliament, we need to understand very clearly how that responsibility is being executed.
(10 years, 10 months ago)
Commons ChamberOn that last point, the hon. Gentleman will know that it was my right hon. Friend the Secretary of State who spotted that things were not right with the implementation of the universal credit and commissioned the review that disclosed the problems to the Department for the first time, as the National Audit Office and Public Accounts Committee report makes absolutely clear. Far from evading responsibility, it was my right hon. Friend who spotted the problems and set to work solving them.
Does my right hon. Friend acknowledge the widespread appreciation of his personal commitment to improving skills in the civil service, which is truly commendable? Will he also take this opportunity to welcome the fact that the Public Administration Committee has just announced a new inquiry into skills in the civil service, and will he encourage people to send us as much evidence as possible?
I absolutely welcome the inquiry that my hon. Friend is leading and will certainly encourage a lot of evidence to be given. We have to be open about the problems that exist. Otherwise, there is no chance whatsoever of solving them. The first stage in finding solutions is being honest about the problems.
(11 years, 1 month ago)
Commons ChamberI wish to take this opportunity to praise civil servants for the work that they have done. With a civil service that is significantly smaller than that which we inherited in May 2010, productivity has improved markedly. The civil service is delivering at least as much as it was before, with fewer people. Engagement scores have stayed high, and I want to praise them rather than run down what they do.
I join my right hon. Friend in commending the senior civil service for operating in the way it does. Does he agree that its capability is not enhanced by the degree of churn in the top jobs in the civil service, and what will the Government do to address that?
There has been concern over a long period about senior civil servants—and not just senior civil servants—not staying in post long enough. We are seeking to address that, and I know that the leadership of the civil service takes the issue very seriously. One of the effects of moving to fixed tenure for permanent secretaries will, I suspect, be to lengthen the period they stay in post rather than, as some have feared, shorten it.
(11 years, 6 months ago)
Commons ChamberI commend my right hon. Friend for encouraging a lively debate on the leadership of the senior civil service, not least because senior appointments have led to a great deal of churn and discontinuity at the top of Government Departments in recent years. May I also congratulate him on publishing the IPPR report? We look forward to him coming before the Public Administration Committee to discuss it.
I look forward to one of my regular attendances at my hon. Friend’s Committee with barely concealed impatience. I am grateful for the interest he and his Committee take in this important area. I would like to take the opportunity, while answering this question, to pay tribute to so many hard working civil servants who do a fantastic job, and to the support that so many of them have given to the programme of reform we have set in train.
(12 years, 6 months ago)
Commons ChamberI am grateful for the shadow Minister’s welcome for much of what we have said, although I regret the tone of some of his contribution.
On the hon. Gentleman’s last point about potential politicisation, we are very concerned that that should not happen. Any proposals about the involvement of Ministers in appointments, which has operated in various ways for a long time, must be regulated properly by the Civil Service Commission, whose task it is to ensure that there is no taint of cronyism or favouritism. There have been many suggestions, particularly in the time of the previous Government, that cronyism has been a feature of the way in which Governments operate. Because of that, the Civil Service Commission is particularly concerned to ensure that any changes are made extremely carefully. I and my colleagues strongly support that.
I have not announced any further reductions in the size of the civil service. The figure of 380,000, which is the consequence of the plans that Departments already have, is already out there. The reductions are obviously taking place in a planned and considered way by Departments, and they are alert to the need for front-line services to be protected wherever possible.
The hon. Gentleman mentioned issues of morale in the civil service. However, the people survey, which is a consistent survey across the whole civil service that is done every year—a welcome innovation by Lord O’Donnell under the previous Government—suggests that morale has remained remarkably stable at a time of uncertainty, a pay freeze, the reform of pension schemes and significant downsizing. Turnover, as measured by resignations from the civil service, has also remained stable. There is obviously a reduction in the size of the senior civil service, but that is simply a consequence of the overall reductions in size across the civil service.
I am grateful for the hon. Gentleman’s support for our plans for digitisation. That will not always be without controversy, but it is important. The Government lag behind most providers in making services available to consumers online. Too many online Government services fail, meaning that the non-digital delivery of transactions by post, phone or physical contact has to be retained. That is much more expensive and a lot less convenient for the user. It is important to tackle that problem. He will be aware of the invaluable review that was done by Martha Lane Fox 18 months ago, on which we are drawing heavily to drive our plans forward with urgency.
I accept the hon. Gentleman’s point about interaction with the private sector. I do not make the assumption that the answer to every problem in the civil service is to bring in people from the private sector. In fact, much more needs to be done to equip existing civil servants with skills. That is where interaction is so important. The culture in the civil service needs to feel much more recognisable to people from the private sector, so that when there is interaction, they do not feel like they have stepped on to a different planet. We believe that enhanced interaction will contribute to that.
The only moves that there have been towards regional pay were made under the previous Government, when the Ministry of Justice introduced a degree of regional pay. No final decisions have been made on the matter and we will not proceed without good evidence and a strong rationale for doing so.
Finally, the hon. Gentleman’s response reflected the widespread consensus that there is a need for change. Our proposing change which responds very much to concerns within the civil service does not mean that we think that the fundamental model is wrong. Arguments are made for a more American approach, but one would lose many important benefits such as the institutional knowledge, continuity and ease of transition through that approach. We have therefore worked within the constraints of the model as it is, but much can be done within those constraints. None of the changes need be massively controversial or dramatic, but together they will make a real difference to the way in which the country is governed.
I thank my right hon. Friend for publishing a civil service reform plan, which will prove to be the comprehensive cross-departmental change programme that the Public Administration Committee has long been calling for. Will he engage all his fellow Ministers to ensure that they lead the programme alongside permanent secretaries? Without effective leadership, no change programme will succeed. Finally, will he reaffirm that the civil service must remain one of our great institutions and a force for the stability of government, our constitution and our nation?
I am grateful to my hon. Friend, who has been urging me to publish a civil service reform plan for some time. I have said many times that I am keener on civil service reform than I am on civil service reform plans, but we have set out the plan and what we aim to achieve. It will require concerted political leadership, and there must be no hiding place. The political leadership of the Government and wide consensus across the party divide, which I think there is, together with the leadership of the civil service, will provide the best chance of implementing the plan successfully. I completely accept his point that the civil service is an important component of our stability, but we need to ensure that stability does not equate to a lack of any movement.
(12 years, 6 months ago)
Commons ChamberWill my right hon. Friend confirm that next week the Government are going to publish their civil service reform plan, and that this issue may be one that the plan addresses as the Government try to set out a clear change programme for the whole of government?
(12 years, 10 months ago)
Commons ChamberIt is becoming increasingly clear that the Government have opportunities to handle their IT and increase their digital offering in transactional public services very differently from that which we inherited. It is also becoming increasingly clear that it will be possible for both the quality of those public services and public interaction to be massively improved, at a fraction of the cost incurred by the previous Government.
Has my right hon. Friend had a chance to read the latest report on IT procurement by the Select Committee on Public Administration, which includes the Government’s response to our original report? We commend the Minister for that response, but there is further progress to be made. In particular, how will the Minister tackle the cartel-like behaviour of the large prime contractors?
(13 years ago)
Commons ChamberThere is a whole range of procurement opportunities that are particularly suitable for smaller businesses. Even when we aggregate, that does not exclude small businesses. For example, we have just let the contracts for travel for the whole of Government and one of the successful two bidders is a very small business, which, as a result of winning that contract, will become a much bigger one.
Can my right hon. Friend include in that assessment the ability of charities and small organisations, mutuals and so on to bid for public sector contracts as providers of public services? May I commend the report that the Select Committee on Public Administration has published today on the big society, which recommends that the Government extend the eligibility for the VAT refund scheme, which currently applies to public sector bodies, to charities that deliver public services under contract with a public sector organisation?
I shall ensure that my right hon. Friend the Chancellor takes note of my hon. Friend’s suggestion. We want to make it easier for small voluntary organisations and mutuals to bid successfully. One thing that we aim to do is to get contracts chunked up into smaller lots. We have much bigger contracts, generally, than France or Germany would have in equivalent circumstances, which tends to militate and be biased against the interests of smaller businesses and voluntary and charitable organisations.
(13 years, 1 month ago)
Commons Chamber8. What plans he has for the future of the role of the head of the civil service.
The roles of Cabinet Secretary and head of the civil service are very different and were indeed separate roles until 1981. Following the announcement of the retirement of Sir Gus O’Donnell, the role of head of the civil service will, once again, be separated from the Cabinet Secretary role. The two individual roles will be more focused, and people can be appointed to each on the basis of the skills match to each role. An internal competition is under way to recruit the post holder from among existing permanent secretaries.
Change is the watchword of the Prime Minister and change in government is a vital ingredient of the Government’s reform programme. How will the head of the civil service be able to lead and implement change if he does not have equal authority and equal access to the centre of government as he does now?
(13 years, 6 months ago)
Commons ChamberIf the coalition Government had not inherited the biggest budget deficit in the developed world, we might not have to be taking these steps. I remind the hon. Gentleman that a civil servant on median pay—about £23,000—who retires after a 40-year career, which is not untypical, will have a pension that would cost £500,000 to buy in the private sector. No one in the private sector now has access to such pensions.
May I commend my right hon. Friend for his determination to engage to the maximum with the public sector unions to try to avoid industrial action? He has made it clear, however, that he does not rule out legislative changes. May I plead with him, on behalf of the Public Administration Committee, that we make changes in an orderly fashion, and that perhaps he should publish a Green Paper to consult on what changes should be made, so that we can have a proper debate about them rather than find ourselves propelled into legislative changes in an emergency?
(14 years, 3 months ago)
Commons ChamberThat is completely right. My hon. Friend puts his finger precisely on the point. Our view is that one union cannot be allowed to prevent necessary reform of a scheme that is unsustainable and unaffordable—and, of course, that is precisely the view taken by the last Government. The order laid by the right hon. Member for Dulwich and West Norwood, which came into effect, I think, in April this year—before it was rapidly quashed by the judicial review sought by the Public and Commercial Services Union—was made on the basis that one union could not be allowed to hold up the necessary process of reform. However, I stress again that we seek genuinely to negotiate additional protection for the lower paid.
I have been listening to these exchanges closely, but will the Minister tell me whether I have understood him correctly? Is he saying that, whatever special measures may be made for the lower paid, which he is not prepared to discuss now for the reasons he outlined, he has no intention of trying to impose them through legislation, and that they will be negotiated come what may, but that this legislation might become necessary in order to provide the framework for such a settlement? Is that correct?
Indeed. I will say more about the relationship between the negotiations and the Bill in a little while. The aim would be to have a whole new negotiated scheme that would make this Bill redundant. Sadly, however, the experience of the last Government shows that it is impossible to place absolute reliance on the ability to achieve total consensus on that. Proper additional protection for the lower paid is a central part of our aim in the negotiations. I will say briefly as well that the other side of that coin should be a cap on payments for the highest paid. Again, it seems to us that basic fairness requires that.
Our second goal in the negotiations is to negotiate a higher cap for voluntary redundancy schemes. It is the essence of most redundancy schemes that there should be scope for voluntary redundancy terms to be more generous than those for compulsory redundancy. However, I would like to make it clear, if it needs to be made clear, that no one wants redundancies at all, but if they are unavoidable, which sadly I believe they will be—they were under the last Government, and in the current fiscal environment, they are even more likely—it will surely be much better to be able to offer more generous voluntary redundancy terms. That is simply impossible under the current scheme, because of its unaffordably generous terms.
We have made some progress in the talks, but they have not yet delivered an approach that is agreeable to all the unions involved and to the Government. If we can secure agreement with the civil service unions to introduce a comprehensive new scheme, we will implement that package rapidly. Until we reach that point, however, we would be failing in our duty to the tax-paying public—and to lower-paid workers outside the civil service who daily confront much less generous terms—if we were to allow the excesses of the current scheme to continue unchecked.
That is why we have introduced a Bill to limit the size of compensation payments. It has only two clauses, which cap the amounts payable under the current scheme. The first creates caps on the level of payment possible. Staff who depart on voluntary terms will receive payments calculated under the current terms, but limited to a maximum of 15 months’ pay. For those leaving on being formally dismissed—effectively, compulsory redundancy—the limit will be 12 months’ pay. Where the civil service compensation scheme terms provide for early retirement instead of or in addition to a severance payment, the total value of the package will be subjected to the same cap of 12 or 15 months’ pay. In these cases, if the actuarially assessed cost of the total package exceeds the appropriate cap, the Bill provides that those individuals will instead receive 12 months’ salary—or 15 months’ salary in the case of voluntary departures—and no change to their pension entitlement.