Shared Services Connected Ltd

Jessica Morden Excerpts

Wednesday 9th April 2014 Westminster Hall

[Paul Blomfield (Sheffield Central) (Lab)]

It is a pleasure to open this debate with you in the Chair, Mr Owen.

I sought this debate on behalf of 239 Department for Work and Pensions staff at the Kings Court offices in the heart of my constituency, although the issue affects civil service staff more broadly.

I begin by citing the Prime Minister. Back in January, speaking at the World Economic Forum at Davos, he said that Britain had the potential to become the “reshore nation”. Talking about UK jobs lost abroad, through offshoring, he said,

“there is now an opportunity for the reverse…an opportunity for some of those jobs to come back.”

Should not the Government be taking a lead on this, setting the example through its own employment policies? Last week I received a letter from the Minister for the Cabinet Office and Paymaster General all but confirming that the work lost in my constituency was to be offshored to India, as I understand it.

Let me explain the background. Shared services are those parts of individual civil service departments, arm’s length bodies and agencies that provide corporate services for IT, human resources management, pay and payroll, procurement and finance to deliver their business outputs. In December 2012, the Cabinet Office set out its next generation shared services strategic plan to create five shared service centres. Two independent shared services centres, ISSC1 and ISSC2, would be formed for a number of departments and arm’s length bodies. The three remaining were to be stand-alone centres, based on the Ministry of Justice, the Ministry of Defence and Her Majesty’s Revenue and Customs.

The first of these independent shared service centres, ISSC1, based on the Department for Transport in Swansea, was outsourced to German multinational Arvato in June 2013. The Public and Commercial Services Union, representing the majority of staff, engaged positively in the transfer process to secure the best possible outcome. The consultation led to agreements, including one on no compulsory redundancy for at least a year and an agreement that staff would retain their civil service status.

ISSC2, which affects Sheffield, was to consist initially of the shared services functions of the Department for Work and Pensions, the Department for Environment, Food and Rural Affairs and the Environment Agency. This was turned into a joint venture company called Shared Services Connected Ltd, in which the Government retained 25% of the shares, with the French multinational Steria’s UK subsidiary owning and controlling 75%. The creation of SSCL involved civil service shared services sites in York, Alnwick, Cardiff, Blackpool and Newcastle, as well as the one in my constituency in Sheffield. SSCL became live in November 2013 and 1,000 civil servants were privatised and TUPE-ed over.

The PCS secured agreements with the Government on this process, including a six-month no compulsory redundancy agreement and a one-year guarantee of no site closures. However, on 4 March 2014, SSCL announced 500 job cuts, office closures and the offshoring of work, quite cynically timed to the minute the one-year guarantee against site closures ran out.

As well as the closure in Sheffield, by October 2014, the DWP office in Cardiff will close, with a loss of 105 staff, and the Environment Agency office in Leeds will close, with a loss of 68 staff.

[Jessica Morden (Newport East) (Lab)]

Can my hon. Friend understand the anxiety felt by staff at the Newport MOJ shared services centre—the situation is similar to the one in Sheffield that he is explaining—who understood that that was to be a stand-alone site, although it is now being considered for outsourcing to Arvato or Steria?

[Paul Blomfield]

I can indeed, and I will come to that issue. Closer to Newport than Sheffield, I met some staff from Cardiff last week. Like the staff in Sheffield, these are loyal civil servants who have contributed years of public service and, frankly, they feel betrayed by the decision and by the way that the decisions are being executed.

As well as job losses in Sheffield and Cardiff, 122 staff will go in SSCL offices in Blackpool, Newcastle, Peterborough and York. The DEFRA site in Alnwick has a temporary reprieve, but only until June 2015. The Government have not conducted economic impact assessments of the closure of these offices, although the loss of jobs will have a significant impact on local communities and economies. Indeed, in June 2013, Lynn Phillips, head of service improvement for DEFRA, wrote to the then Minister, the hon. Member for Somerton and Frome (Mr Heath), highlighting the plan’s

“incompatibility with UK growth objectives”

because of the

“loss of jobs in regional locations”.

Will the Minister assure us and say that the Government will conduct an economic impact assessment and, if so, when that is likely to happen?

[Paul Blomfield]

My hon. Friend is right. I am coming to that point. Clearly, this issue has led to concerns being raised, even at Cabinet level. Yet, extraordinarily, the offshoring is being rushed through.

The speed at which SSCL intends to cut the 500 jobs is unprecedented. It aims to have all redundancies dealt with by the end of October. This does not allow enough time for staff to be re-employed or reinstated back into the civil service and means that compulsory redundancies are likely. Indeed, staff in Sheffield and in Cardiff, whom I met last week, told me that the redeployment opportunities have been limited, because there is no joined-up approach across Government. I find it extraordinary that most other Departments are not offering vacancies to those loyal civil servants who are losing their jobs. Do the Government think that this is the right way to treat any staff, particularly those who have given decades of public service? It sets a bad standard for employers throughout the country. I should like the Minister to reassure us on this issue. Will the Government commit to providing redeployment opportunities across all Departments? That would provide a lifeline for at least some staff. The limited opportunities that have been made available to date are inaccessible to many of those in Sheffield, and those at other sites, too.

SSCL is not acting in accordance with the special commitments given to staff before transfer, which stated that transformation would take place over two years and that everything would be done to avoid compulsory redundancies. The Government have a 25% stake in SSCL. At the very least, should they not use that position to challenge the speed of job cuts, to allow a thorough, ongoing programme of redeployment of staff? I should like the Minister to respond to that question.

There is also the issue of the data being handled. These sites handle the personal data of tens of thousands of civil servants. They also deal with commercially sensitive information relating to Government contracts and tendering. Despite the sensitivity of the data, when the Cabinet Office advertised for bidders to become majority partners in SSCL in April 2013, the selected bidders all had a significant element of offshoring functions as part of their bid.

Concerns about offshoring are not restricted to Opposition Members or their staff; they have, as my hon. Friend the Member for North Tyneside (Mrs Glindon) pointed out, been expressed at Cabinet level. The Secretary of State for Environment, Food and Rural Affairs wrote to the Minister for the Cabinet Office last July, expressing concerns about DEFRA joining ISSC2 and a “possible staff exodus”. The Secretary of State asked specifically for a standstill period on “estates and off-shoring” and expressed concerns about data security. The head of service improvement for DEFRA wrote in her letter to the hon. Member for Somerton and Frome that the DEFRA executive committee considered

“significant (or any) element of off-shoring”

to be unacceptable and that there was a

“significantly increased risk to service continuity from loss of current expertise”

on transfer. She also raised concerns about

“employee and detailed financial data transmitted, stored and processed outside the UK”.

Why are the Government sanctioning the offshoring of sensitive personal data and commercially sensitive information, on which objections have been raised at the highest level of the civil service and by members of the Cabinet?

[Jessica Morden]

Does my hon. Friend agree that it is breathtaking hypocrisy for the Prime Minister to have been talking just weeks ago about Britain becoming the reshoring nation while the Cabinet Office pursues contracts that are explicitly relaxed about offshoring jobs, such as those at the shared services centre in Newport?

[Paul Blomfield]

My hon. Friend is absolutely right and again anticipates a point I will make. Before I do, I make one point about the remaining three shared service centres. Originally, they were to stand alone, but I understand that the strategic plan has been fundamentally revised. Peter Swann, who heads the Crown oversight function of the shared services agenda, has confirmed that the Ministry of Justice is considering transferring its shared services to one of the outsourced ISSCs instead.

I understand the concerns of the staff involved. If the MOJ was to join one of the already outsourced ISSC contracts, the sensitive data the staff handle, including criminal records and details of the police, the judiciary and security service personnel, could also be privatised and offshored. Why has the strategic plan been changed?

Finally, taking on board the point made by my hon. Friend the Member for Newport East (Jessica Morden), I return to my opening point. What makes the cuts so much harder for the staff to swallow is that so much of the work for the three sites under threat of closure has been earmarked for offshoring. Indeed, the PCS told me that SSCL has explicitly said that a determining factor in deciding which sites are to close is the potential for the work to be offshored. Offshoring is the driver for decisions on closure and job losses.

As my hon. Friend said, how does that fit in with the Prime Minister’s assertion at the World Economic Forum that he wants the UK to become “the reshoring nation”? At Davos, he underlined that ambition by announcing the establishment of a new body, Reshore UK, which will sit within the Department for Business, Innovation and Skills. The Prime Minister clearly places great weight on that body in developing his reshoring strategy. Will the Minister commit to arranging for Reshore UK to meet with SSCL and the Cabinet Office with the aim of considering how the jobs they plan to offshore can stay in the UK? If not, does he accept that the Prime Minister’s statement at Davos will be seen as nothing more than empty words?

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 12th February 2014 Commons Chamber

[Mr Jones]

Clearly, the issue of access to cross-border services is a matter of concern both to patients and practitioners in Wales. The Wales Office is closely engaged on this matter with the Department of Health and with the Welsh Assembly Government.

[Jessica Morden (Newport East) (Lab)]

4. What discussions he has had with the Secretary of State for Justice on the Ministry of Justice’s shared services centre in Newport.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The Wales Office is in close contact with the Ministry of Justice, which is still at an early stage in evaluating options for the shared services centre in Newport. The Government are committed to ensuring that services are delivered efficiently, while providing value for money for taxpayers.

[Jessica Morden]

In December, hundreds of workers at the MOJ’s shared services centre in Newport learned that their jobs could be privatised, and obviously the work force has great concern that jobs could be outsourced or offshored, as we have seen with the Government’s model. Given the bad news that Newport received last week with the potential loss of jobs at Avana Bakeries, will the Minister speak up for public sector workers in Newport and tell the MOJ to abandon its plans?

[Stephen Crabb]

I thank the hon. Lady for her question. On the point about Avana Bakeries, she should be aware that I spoke to that company on Friday afternoon; the scenario is obviously very difficult for the city of Newport.

On the shared services centre, the evaluation of options is, as I said in my initial answer, at an early stage, but the Government will work with staff, trade unions and other stakeholders to assess any impact on staff. We are very mindful of the jobs impact on the hon. Lady’s constituency.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 29th January 2014 Commons Chamber

[Mr Hurd]

Yes, the Government agree with that. That is why we put the Public Services (Social Value) Act 2012 on the statute book. Later this month, we will publish a one-year-on review of that Act, because it matters to us. We are keen for commissioners—the people who spend public money—to think intelligently about how money can be stretched as far as possible.

[Jessica Morden (Newport East) (Lab)]

5. What assessment he has made of the efficacy of privatised shared services across central Government Departments.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

The Government’s first priority is to drive down costs for the taxpayer and cut the massive budget deficit that we inherited. There has been cross-party agreement on the need for shared services for the past decade, but very little had been achieved until over the past 12 months. That is why I am pleased that last year we launched a joint venture with Steria that will save taxpayers at least £400 million and create a new, dynamic UK business services company.

[Jessica Morden]

The announcement in December that the Ministry of Justice’s shared service centre in Newport could be privatised has caused huge fears and uncertainty among the work force, who fear that their jobs will be outsourced and potentially offshored, which could happen under this model. Given the Prime Minister’s commitment to onshoring jobs last week, will the Cabinet Office reassure the workers in Newport that the plans will be shelved?

[Mr Maude]

We will certainly not shelve any options that could bring improved services and cut the cost to the taxpayer. I am aware of the uncertainty. That will be resolved as soon as possible so that people know where the future lies. To give a bit of reassurance, I remind the hon. Lady that the first shared service centre in Swansea, which has been fully outsourced rather than being a joint venture, is taking on more staff.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 20th November 2013 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

13. A report by the CAB last week showed that over the past three years energy bills have increased eight times more than earnings. Does the Secretary of State not share the concern that Wales has the highest energy bills of anywhere in the UK? If he does, why does he not tackle that far more urgently?

[Stephen Crabb]

Wales has some of the highest energy prices, but regional variations are partly due to higher transmission costs—an important component of an energy bill. That brings us back to the earlier question about wanting more expensive transmission projects in Wales, not cheaper ones. We are very aware of the pressure on households in Wales because of the energy prices increase, and we are not complacent about that.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 9th October 2013 Commons Chamber

[Mr Jones]

The hon. Lady is making a point that has already been made, and that argument has now been discounted. She will know that the Government have tabled amendments to the Bill and have now reverted to the wording of the existing legislation, which defines controlled expenditure as expenditure that can

“reasonably be regarded as intended to promote or procure the electoral success of a party or candidate”.

That is precisely the same wording as applied in 2005 and 2010, so her fears are entirely unfounded.

[Jessica Morden (Newport East) (Lab)]

10. What assessment he has made of the effects of the under-occupancy penalty in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The removal of the spare room subsidy, which already applies in the private rented sector, has brought fairness back into the system. This Government are prepared to tackle this long-standing inequality and are taking the tough decisions to deliver a recovery that works for all.

[Jessica Morden]

I have contacted many housing associations in Wales in recent weeks, and the information so far points to the fact that—[Interruption.]

[Mr Speaker]

Order. I apologise for interrupting the hon. Lady, but I want to hear her question from start to finish, and to hear the answer. The House deserves to hear her question from start to finish.

[Jessica Morden]

Thank you, Mr Speaker.

I have contacted many housing associations in Wales in recent weeks, and the information collected so far points to the fact that about 45% of those who were previously able to meet their rent payments are now in arrears. Given that the discretionary housing payments are clearly not enough, what message does the Minister have for those who are falling into arrears?

[Stephen Crabb]

I have not seen the information that the hon. Lady has brought to the House today, but I will gladly sit down and go through it with her. I would be concerned if, as she says, there has been such an increase in the number of people suffering rent arrears. That is not what we are planning for, and we are making available to Welsh local authorities the resources to ease families through this difficult transition.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 3rd July 2013 Commons Chamber

[Stephen Crabb]

I pay tribute to my hon. Friend’s campaigning, and the work of other Government Members, to see the improvements to the M4. He rightly points out that this project was shelved on several occasions by Welsh Ministers. I do not want to pre-empt any announcement today, but I would like to give him every reason to be optimistic that we will get a successful outcome to the discussions with the Welsh Government on this issue.

[Jessica Morden (Newport East) (Lab)]

Help to relieve the traffic nightmare around Newport is vital, but will the Minister assure my constituents that any resource given to the Welsh Government will be significant enough to help deal with the big impact that any new road will have on local communities and the environment?

[Stephen Crabb]

The hon. Lady is absolutely right to raise the technical challenges involved in a new relief road for the M4. She will have noted the Welsh Government announcement that they will shortly launch a consultation on the details of the scheme, which will provide her local community with every opportunity to express concerns and, we hope, get answers to their questions.

Oral Answers to Questions

Jessica Morden Excerpts

Tuesday 4th June 2013 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

T6. The Government’s commission on social mobility has warned of rising child poverty, and has said that the Government are not doing enough. What is the Government’s response?

[The Deputy Prime Minister]

We are doing many things, but one of the principal objectives that we have been pursuing over the past three years is making sure that resources help children in the early years, when they make the biggest difference. That is why we are the first Government to deliver 15 hours of pre-school support to all three and four-year-olds; the first Government ever, as of this September, to deliver 15 hours of child care and pre-school support to two-year-old toddlers from the lowest-income families; and the first Government ever to introduce a pupil premium worth £2.5 billion of additional support to children from the lowest-income families. That is the way to break the generational transmission of deprivation and educational under-achievement that has blighted this country for too long.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 15th May 2013 Commons Chamber

[Mr Speaker]

Order. There is a large number of extremely noisy private conversations taking place, including among those on the Opposition Benches, who I am sure will now wish to hear Jessica Morden.

[Jessica Morden (Newport East) (Lab)]

9. What assessment he has made of the effects of the Government’s welfare policies on disabled people in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The introduction of the personal independence payment will ensure that we provide more targeted support to those who need it most. Under our reforms, a greater proportion of disabled recipients will get the higher levels of support compared with disability living allowance.

[Jessica Morden]

In Wales, 25,000 disabled people will be hit by the bedroom tax, more than 40,000 are set to lose their disability living allowance and more than 50,000 will see their benefits reduced. Does the Minister agree with Disability Wales that a cumulative impact assessment of the Government’s welfare changes is urgently needed?

[Stephen Crabb]

I suggest that the hon. Lady looks at the cumulative impact of the range of welfare reforms that we are bringing in. Under universal credit, 200,000 households in Wales will see their entitlement go up by about £140 a month, and a large proportion of the people currently receiving disability living allowance in Wales will also see their entitlement go up. She should not necessarily believe the scaremongering from Opposition Members.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 16th January 2013 Commons Chamber

[Stephen Crabb]

On the tourism marketing of Wales, the hon. Gentleman will be aware that those decisions lie with Welsh Ministers. I know that some Members are puzzled about some of the decisions they have taken about how they deploy those resources, but it is a matter for them. The Wales Office is keen to do whatever it can, including with VisitBritain, to see that Wales excels in the tourism sector.

[Jessica Morden (Newport East) (Lab)]

Encouraging visitors to visit Wales could be greatly helped if they did not have to pay the highest tolls in the UK on entering Wales. Will the Minister ensure me that he is vigorously campaigning with the Department for Transport to reduce tolls when the ever-extending concession ends?

[Stephen Crabb]

The evidence on the economic impact on the Welsh economy of the Severn bridge tolls is mixed, not least in respect of tourism, which relies on the bridge to carry visitors into Wales. All I would say at this stage is that until 2018, when the concession ends, no decisions can be taken about the future use of those tolls and whether they will remain at the current levels or whether other options are available.

Electoral Registration

Jessica Morden Excerpts

Tuesday 15th January 2013 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

As a Newport MP, I very much enjoyed my hon. Friend’s earlier reference to the Chartists. We put a huge burden on our electoral administrators and, as he says, electoral registration is not immune to the big local authority cuts. Does he agree that, with more elections than ever before and given that burden, it is even more important that we resource election administrators properly?

[Nick Smith]

I agree. Election administrators rightly complain about the amount of resources they are given to do their important job. They should be supported both locally and nationally.

I believe that it is the responsibility of the state, not of political parties, to secure maximum voter registration, so I hope that the Minister will commit herself to that and give priority to those hard-to-reach voters, particularly the young. Voting is a habit best acquired early, and one that we should all strive to promote. The Government need to show much more ambition on voter registration. Let us get the 6 million people who should be on the electoral register signed up and able to vote in the future.

--- Later in debate ---

[Wayne David]

We must be mindful of the tremendous pressure on local government at the moment. Although moneys might be nominally provided for electoral registration, I would like the resources to be ring-fenced, to ensure that they are used for the process for which they are stipulated. We are not blaming local authorities —we can all understand the tremendous pressure that they are under in a cuts climate and that education and social services and so on require resources—but if money is not ring-fenced, it is all too easy for it to be surreptitiously shifted from one budget to another. That is why it is very important that the Government commit to introducing ring-fencing.

[Jessica Morden]

Does my hon. Friend agree that, if fines should come in, the money from them also should be ring-fenced for electoral registration purposes?

[Wayne David]

I understand my hon. Friend’s sentiment, but I do not think that it is quite that easy. A wrong impression might be given—a bit like with speeding fines—with electors under the impression that local authorities were deliberately fining people to ensure an extra source of income.

[Jessica Morden]

Just to clarify, I meant that if fines were introduced and the money went somewhere central, the Government should somehow consider how the money could be ring-fenced for electoral registration purposes. I appreciate that if the money went to a local council there could be a perverse incentive not to register people to charge more fines.

[Wayne David]

That is a sound sentiment, and I would welcome the Minister’s response. We certainly all recognise that adequate resources must be provided if the system is to work. Money, from wherever it comes, is to be welcomed, and we need as much of a focus as possible on this issue.

I understand that the Government, according to their implementation plan, were to come forward with a funding mechanism for local authorities by last December, and I also understand that that has happened. Have the Government gone a step further, however, and not simply talked about a funding mechanism but begun to consider how much local authorities will have and whether there will be differential allocation according to the amount of work that is necessary in each area? I refer back to a point made earlier about under-represented groups. The Government, through the Cabinet Office, have been doing good work in liaising with various groups that work with under-represented elements in society, but there is a need for extra targeted resources, to ensure that we get under-represented groups fully registered.

Finally on funding, I want to ask about the situation in Wales. I understand that last year there were ongoing discussions with the Welsh Government about a sum possibly being devolved for them to carry out their work in relation to local authorities in Wales. Can the Minister enlighten us on whether the discussions have concluded and what sum has been allocated for individual registration in Wales?

This is important legislation, and it is commendable that so many Members—Labour Members, at least—have attended the debate. I am slightly concerned that more Government Members are not here, but I hope that now that the Bill is once again making progress, thanks to last night’s definitive decision in the other place, our constructive dialogue will continue when the Bill returns to this House.