Public Sector: Working From Home

Lord Londesborough Excerpts

Thursday 20th March 2025 Lords Chamber

Asked by

[Lord Londesborough]

To ask His Majesty’s Government what plans they have to assess the impact of working from home on the productivity of the public sector.

[Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)]

Noble Lords will, like me, want to thank the public sector for its continued dedication and for what it does day in, day out. As my noble friend Lord Livermore informed your Lordships’ House in a similar OQ last year, the Government inherited a situation in which public sector productivity remains at 6.4% below pre-pandemic levels. This is clearly unacceptable. Our focus is on fundamental reform of our public services to drive greater efficiency and productivity. Further details will be set out in next week’s Spring Statement and the forthcoming spending review.

[Lord Londesborough (CB)]

I thank the Minister for her response but I am rather perplexed. If economic growth is the Government’s top priority, why are they failing to conduct a full and proper assessment of the impact of working from home across the public sector—not least because the 7% fall in public sector productivity since the pandemic has coincided with a surge in remote working? There are key questions to answer, whether it is by sector or job function, for both management and employees, especially the young. It is not a one-size-fits-all issue, as the private sector is rapidly discovering. Why do the Government remain so resistant to learning?

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank the noble Lord for his question. I am sorry but I do not agree with the sentiment behind it. In the Budget last year, the Chancellor announced a £100 million public sector reform and innovation fund, which has established a “trust and learn” approach to how we can deliver public service reform. We should be very clear that, according to the CIPD, the overwhelming majority of private sector organisations also now operate hybrid working at 60%, which is the same level as in the public sector and the Civil Service.