Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the cost effectiveness of the outsourcing the (a) assessment and (b) administration of welfare.

We do not outsource the assessment or administration of social security in any wholesale manner, although some elements of these services are outsourced to third parties.

Where these services have been outsourced, each arrangement is subject to individual scrutiny both at the planning and commissioning stages, where a number of steps are conducted:

• A Delivery Model Assessment (also known as a Make vs Buy assessment) to understand whether outsourcing is cost effective and able to offer value for money in the first instance;
• A Should Cost Model to enable us to understand what the potential costs of the services are, where this can be compared to an insourced model and used as a benchmark for any bids received, and;
• An assessment as part of the commercial process to ensure that bids are cost effective and offer value for money.

When we do decide to outsource, at the end of the commercial process a contract will be executed, which will capture the key requirements for provision of the service and the service levels expected of the provider to enable the anticipated value for money to be delivered. This will be managed closely by contract management practitioners accredited to, or studying towards accreditation, at Expert or Practitioner level (depending on the complexity of the contract) of the Contract Management Capability Programme managed by Cabinet Office. This enables and ensures that the department realises the best value for money possible from the third party services and the optimum cost effectiveness.