Jobcentres and the DWP Estate

Debate between Chris Stephens and Damian Hinds

Thursday 20th July 2017 Westminster Hall

[Damian Hinds]

I am sorry, I will not. The hon. Lady will have to forgive me, but I want to answer as many questions as possible.

To give some context, the DWP occupies about 1.5 million square metres of office space, but the way it operates is significantly different from 20 years ago, meaning that at least 20% of that space is under-occupied. The falling claimant count and the increased use of online services in recent years mean that 20% of the money the Department spends on rent goes towards space we are not using. By paying only for the space we need and the services required to operate from it, we anticipate saving £140 million per year over the next 10 years. To be clear, this is not about reducing services—the hon. Member for Wirral West alluded to that—but about taking the opportunity to stop spending taxpayers’ money on empty space and instead spend more to support those in need.

The labour market is in its strongest position for some years: the employment rate is 74.8%, the joint highest figure on record, and since 2010 unemployment has reduced by 913,000 and the overall number of people claiming the main out-of-work benefits has fallen by more than 1.1 million. In Glasgow over the past four years, the claimant count has come down from 27,890 to 16,800. The DWP estate is bigger than it needs to be, is not flexible enough to deal with the needs of the Department’s customers now and in the future and, in some instances, is of poor quality, preventing improvements such as digital innovation and more interactive ways of working with customers.

The Department is not transforming its estate in isolation. In June 2013, the Government published their first overall estate strategy, which was expanded in October 2014. The strategy aims to ensure that all Departments are working towards an effective and efficient Government estate that provides value for money to the taxpayer, delivers better, more integrated public services and acts as an enabler of growth. In January this year, we announced proposals to rationalise the DWP estate. The proposals encompassed most of our Jobcentre Plus offices, processing centres and head office buildings. Our announcements on 5 July finalised those plans for the majority of sites.

In our processing centres, the changes move towards creating larger, modern, digitally enabled centres, with teams working on several areas coming together to deliver a joined-up, efficient service to our customers. The focus is on creating an estate with a much improved working environment, with more opportunities for our staff to develop, learn new skills and progress.

Significant investment starting in 2018 will include the opening of a new processing centre in Glasgow, which will allow us to bring together colleagues from smaller, older sites across the area into a new property fitted out to create an efficient, effective working environment that allows the DWP to align more closely with other Departments working in the area. With the existing large processing site in Northgate, that will result in a DWP presence of more than 2,000 staff in Glasgow. In total in Scotland, we will keep a substantial processing presence, with large sites in locations such as Falkirk and Kilmarnock expanding to bring further jobs into those areas.

That investment will continue with a new purpose-built site in the Treforest area to the north of Cardiff in south Wales, which will bring together colleagues from smaller, older sites across the region into a new building and provide about 1,600 jobs in one of the most deprived areas in the UK. We are also working on similar large processing sites in Bristol, Birmingham and Hastings. Together with the changes to how we work in some of our remaining properties, that will create a processing estate that will be able to support the Department well into the future, while remaining flexible enough to deal with changing needs over the coming years.

The changes in the jobcentre network focus on three things: first, moving some jobcentres to shared Government premises to allow for better, more efficient use of space and a more co-ordinated service; secondly, moving some jobcentres to new buildings because the quality of the existing property is not up to scratch or is unable to meet the needs of our customers now and in the future; and thirdly, merging smaller and underused jobcentres to create larger operations that offer a better, more joined-up service to our customers. The changes include around 40 new opportunities to collocate jobcentre services into local authority or community premises, which will result in about 80 collocations in total.

In Scotland, we have 95 jobcentres, which is more jobcentres per head of population than in England. The changes will result in 11 jobcentres merging into nearby offices, three jobcentres moving into shared offices with local authorities and councils, and one jobcentre moving into an improved building in the same town. The resulting 85 jobcentres across the country still leaves Scotland with significantly more offices per head of population than England.

In Glasgow, we have 17 jobcentres, which the hon. Member for Glasgow South West acknowledged in his opening speech was more per head of population than in any other major city in Great Britain. Even with the reduction to 11 jobcentres, Glasgow will continue to have more per head of population than other cities. We consulted on three moves in Glasgow—Maryhill, Castlemilk and Bridgeton—and held a further consultation on Broxburn. The changes will enable the Department to offer a more efficient service while delivering value for the taxpayer.

The changes have been developed working closely with local leaders, using their local knowledge of the area, travel network, customers and community needs. Distance and journey times were calculated using a variety of methods to ensure accuracy in our planning, including online tools and timetables, as well as information collected on local public transport routes. Most importantly, that was all used to inform discussions with local staff, with their experience and knowledge of their areas.

Any change with an impact on DWP employees has involved consultation with them and their trade unions. In most cases, staff consultation began with an announcement back in January, followed by three to five weeks of discussion when we considered the impact of any changes on their offices. We have consulted the public on any jobcentre mergers that may mean customers will have to travel a little further. There is no statutory requirement for such consultation, but we were committed to making the decisions in consultation and have conducted public consultations on all proposed closures of jobcentres that fall outside the ministerial criteria.

[Chris Stephens]

Will the Minister give way?

[Damian Hinds]

I was trying to leave the hon. Gentleman a minute at the end, but he may go ahead.

[Chris Stephens]

The Minister has outlined the Government strategy. May I ask him a simple question? Is he saying that more jobcentre closures are on the cards? In other words, is the Department planning more closures?

[Damian Hinds]

I am fairly sure that I was talking not about that, but about the consultation criteria. At the end of the process, we will have a settled estate, which will put us in a better position to share services and so on with other bodies.

I will skip over some of my material and respond directly to some of the questions that came up in the debate. The hon. Member for Wirral West asked about concerns about travel times and travel costs. I reassure Members that claimants can be reimbursed for any travel to jobcentres that is more frequent than fortnightly. For those on JSA for more than 13 weeks and, in some circumstances, from the very first day on other benefits, it is possible to apply for a Jobcentre Plus travel discount card, which is available for different local transport companies. Of course, anyone on employment and support allowance is not asked to attend the jobcentre regularly. The existing outreach services and the additional ones that we will put in place as a result of the changes will give us more presence in local areas.

On sanctions, the point is that we ask people to make reasonable efforts to get to appointments and other things they have committed to as part of their job search. There will be a transition time as people get used to different arrangements, but the requirement for people to make reasonable efforts will always remain.

On access to online facilities, DWP always has an alternative to online, but in this day and age it is also true that to look for work and to be in work, it is increasingly essential to have some IT skills. We therefore think it is important to help people with that, which is one of the reasons why we provide IT equipment in jobcentre lobbies and have people who can help claimants with it.

The hon. Member for Glasgow South (Stewart Malcolm McDonald) asked whether the other jobcentres in Glasgow have the capacity to take in the extra operations. The answer is that they do—that is the entire basis of our plans. We will put outreach in place in those locations where we had a public consultation because the distances travelled would be a little further.

We want to minimise all risk of job losses. We have not yet completed all the conversations with staff, and we are continuing to have those one-to-ones. The DWP has a good record over many years of retaining staff. We will seek to facilitate that as much as possible.

Some of the questions were about working with the Scottish Government. We are keen to do so, and we look forward to more such opportunities in future. I was also asked about the equality impact assessment, and we have built in consideration of the impact on people with protected characteristics through all stages of the estates project process. We will continue to do so, thus fulfilling our duty under the Equalities Act 2010.

Telephone Calls to the DWP

Debate between Chris Stephens and Damian Hinds

Wednesday 21st June 2017 Commons Chamber

[Damian Hinds]

Yes, of course I recognise that. I represent a rural constituency myself, and it is important to have other options available where necessary. It is also the case that when we are dealing with people seeking work, for example, being able to get online is vital for that purpose. That is one of the reasons why we also ensure IT provision inside jobcentres.

It would not be an effective use of public money to build universal credit around a freephone telephone number, but where customers need to call DWP regarding their claim, it is through an 0345 number. The costs of calling an 0345 telephone number are set by individual providers, but they are never more than the cost of calling geographic numbers, which have 01 and 02 dialling codes. Calls to 0345 telephone numbers are typically included in any free or inclusive minutes in a caller’s landline or mobile telephone contract. Although there are a multitude of service providers and tariffs, I can confirm that calls to 0345 telephone numbers are included in bundled minutes for mobile services by the biggest providers—EE, 02 and Vodafone—as well as most of the others.

I know that in the past the hon. Gentleman has raised the use of more expensive 0845 telephone numbers. I am pleased to be able to confirm that the DWP does not use 0845 telephone numbers in any of its communication channels. We replaced 0845 numbers with 0345 numbers during 2014 and 2015. That process was completed before the Ofcom changes in call charges came into effect in 2015, making calls to 0845 numbers more expensive. After the DWP 0345 numbers were introduced, customers calling an old DWP 0845 telephone number would receive a recorded message informing them that they should dial the correct 0345 number. There was no charge for the call to the old 0845 telephone number.

I appreciate, of course, that some of the most vulnerable people in society have to contact DWP services, which is why, if callers express concern about the cost of a call, we offer to call them back. The Department provides controlled access to telephones for claimants in jobcentres, when required, to help with any benefit inquiries. It has also expanded its “once and done” service centre approach across its working-age, disability and specialist sites, so that it can meet a claimant’s needs during the first call whenever possible. It continues to review and identify opportunities for integrating telephony and benefit-processing activity further to improve the service it delivers.

The Department is proactive in considering how further to reduce any potential cost impact on customers when they need to transact business. As Members will know, in delivering welfare reform, universal credit is designed to be accessed online, with telephony services used as a back-up. The universal credit experience is delivering an effective channel shift away from the use of telephony, with over 90% of new claims made through digital interfaces and away from the telephone.

[Chris Stephens]

Will the Minister give way?

[Damian Hinds]

If the hon. Gentleman will forgive me, we will see how the time goes.

A telephony option is always available to people who may not have internet access, or who are experiencing difficulties in accessing the service online.

The DWP is also seeking to exploit new and emerging technology to keep in touch with claimants. We have introduced SMS text messaging for a number of service lines to confirm to customers receipt of their claims, information or documents, or to let them know when they can expect an outcome. Those changes reduce contact from claimants chasing updates, while increasing the overall customer service experience. The service operates for new claims for employment and support allowance and jobseeker’s allowance, and was introduced more recently to acknowledge receipt of fit notes.

The Department is developing a strategy across all the services it delivers, which will allow us to carry out a safe transition of our key telephony platforms and consider how to make best use of new technologies and contact channels. Given the complexity of the services that the Department delivers and the range of customers with whom we interact, it is vital to ensure that we really understand the range of services that citizens need in order to interact with us. I am sure Members appreciate that a “one size fits all” approach would not be successful. The Department has to strike the right balance between the cost to callers and the cost to taxpayers, which is why a mixture of freephone and paid—but never premium-rate—telephone numbers is available to citizens. As the hon. Gentleman said, if the 0800 numbering range were extended to all service lines, it would cost the taxpayer an additional £7 million per year.

[Chris Stephens]

According to the gov.uk website, telephone calls to 0345 numbers can cost up to 55p a minute. Can the Minister confirm that that information is correct?

[Damian Hinds]

I have here the print-out of that page. It lists a number of different telephone number prefixes. Members will be aware that these days there are more telephone number prefixes than when we were growing up. The service on the Government website is to help people to understand what it means if they see an 03, an 0845, or an 07 number. It lists a range of costs for geographic numbers—the numbers we have for our homes; the 01 and 02 numbers—and a range for 03 numbers, which is the same as the range for the geographic numbers. That is what the tariff reflects. I am happy to confirm to the hon. Gentleman that we have been through that information today. There are a couple of minor points on the gov.uk information site that need to be updated, but they do not relate to any of the number prefixes that are in use at present by the DWP.

[Chris Stephens]

We will take that as a yes, so may I ask the Minister the following? He talked about a range of services and using different telephone lines and numbers for those services. Will he seriously consider setting up a free phone line for those who have received benefit late—for example, someone who should have had money on the Friday and who had to chase that up on the Monday?

[Damian Hinds]

Obviously, we want the system to be as accurate as possible. We want to reduce the requirement for people to be in touch with the Department for those reasons. When they have to, we want that to be done as quickly and as efficiently as possible. I have outlined the Department’s policy. There is a range of 0800 numbers. The rest are 0345 numbers, which are equivalent to a normal, geographic land call. Typically, in a mobile phone contract or bundles on pay as you go, that would be included in the minutes that one has. We think that that is a fair and reasonable approach. There is still the option to request a call-back, too.

I want to come on to some of the other issues that the hon. Gentleman raised. He alluded to the fact that he and I have exchanged correspondence on the issue of third parties seeking to make a profit out of calls to the DWP. As he rightly mentioned, that can happen with other services, too. I would like to take the opportunity of this debate to update Members on that important issue.

I can confirm that my Department does not make any revenue out of calls to our publicised telephone numbers. We know that there is a small number of companies that seek to make money by providing an alternative, and usually more expensive, telephone number that then routes callers through to the Government helplines. Although that practice may be considered unethical, it is not illegal, provided the company does not pretend to be the Government and does not state that it is officially affiliated. The DWP is aware of a small number of sites that advertise that type of service, primarily owned by the same individual.

I strongly encourage internet search-engine providers actively to police and manage advertisers and subscribers who may look to profit from some vulnerable members of our society by advertising expensive or premium rate telephone lines as a route to access DWP services that are accessible directly through either freephone 0800 or local rate 0345 telephone numbers. The specific activity known as vishing, where a voicemail is left for the citizen to call back an unofficial number, is generally not widespread within the DWP— only one occurrence has been identified.

The DWP does everything it can to stop customers being caught out and, in that instance, the same number was identified as appearing as an “infobox” on a search engine for universal credit alongside the genuine UC number. The DWP complained to that search-engine provider and the incorrect entry was removed.

We have covered the question of the gov.uk tariff ranges. The hon. Gentleman also asked about steps being taken to improve access to, and people’s capability and confidence in using, IT equipment. As he will know from his visits to our jobcentres, we provide lobby equipment and encourage people to use it. There is often facility for people to bring their own device and be helped to use that, because we do absolutely see digital capability—digital empowerment—as being vital, not just in the claiming of benefits, but in applying for work, and, of course, when getting into work, as there are few jobs these days that do not require some level of IT literacy.

In conclusion, let me reassure hon. Members that the Department is absolutely committed to ensuring that costs for customers are kept to a minimum and that safeguards are in place for those who need them. The Department is in the process of transforming the way in which citizens interact with us, which I am sure hon. Members can appreciate will take us some time to deliver, given the range of services the Department delivers and the number of people we transact with every day. The hon. Gentleman asked about the Social Security Advisory Committee’s recommendation. These things are technology-dependent. The review of our systems is current and we are committed to looking at that closely.

Our telephony policy will be kept under review throughout this process and the Department will continue to seek to strike the right balance between the cost to citizens and the cost to the taxpayer.

Question put and agreed to.