Tag: National Audit Office

Work coach shortage leads DWP to reduce support for Universal Credit claimants

  • Number of Universal Credit (UC) claimants in categories where the Department for Work & Pensions (DWP) could require them to receive support from a work coach increased from 2.6 million in October 2023 to 3 million in October 2024.
  • 2,100 fewer work coaches employed on average by DWP than it estimated it needed in the first six months of 2024-25.
  • 57% of jobcentres reduced their support for claimants between September 2023 and November 2024 when work coach caseloads were too high.
  • Proportion of UC claimants in lowest earning category who move into work each month has declined in the past two years to below pre-pandemic levels.

The Department for Work & Pensions (DWP) has reduced the level of support it offers to Universal Credit (UC) claimants due to a shortage of available work coaches at jobcentres, amid government plans to get more people into work and progressing in their careers, according to a new National Audit Office (NAO) report.

DWP relies on its network of 646 jobcentres across Great Britain to help people move
into work and to support those already in work to progress. In November 2024, the
government set out its plans for reforming employment support, including the role of jobcentres.

DWP tailors jobcentre support for UC claimants based on their earnings and personal circumstances. The number of claimants in categories where DWP could require them to receive support from a work coach – which includes the ‘Intensive Work Search’ category for those with the lowest earnings – grew from 2.6 million in October 2023 to 3 million in October 2024.

DWP has increased the number of Intensive Work Search claimants by raising the earnings threshold.

Work coaches play a critical role working directly with claimants to identify their needs and provide support. But partly due to funding constraints, DWP has not had enough work coaches to meet the expected demand for jobcentre support, with shortfalls in five of its seven regions in 2023-24.

DWP has also faced challenges in recruiting and retaining work coaches.

To help manage the shortfall, DWP has prioritised supporting claimants in the
Intensive Work Search category and postponed plans to require ‘Light Touch’
claimants to meet regularly with a work coach.

This resulted in DWP needing an estimated 900 fewer work coaches in 2024-25 than it otherwise would have done.

DWP has also set out measures that jobcentres can implement if work coaches’
caseloads are too high.

From September 2023 to November 2024, 57% of jobcentres used these flexibilities to reduce the support they provide for claimants.

The proportion of Intensive Work Search claimants who move into work each month
has declined in the past two years to below pre-pandemic levels.

There is also substantial variation in performance across DWP’s seven jobcentre
regions and 37 districts. At district level, from December 2023 to November 2024,
Birmingham and Solihull had the lowest average monthly into-work rate (5.5%) and
Northern Scotland had the highest (10.8%).

In November 2024, the government published a white paper that set out its plans for
reforming employment support. The plans include creating a jobs and careers service, bringing together jobcentres with the National Careers Service in England.

The NAO recommends that DWP assesses the impact of the shortfall in work coaches
on jobcentres’ ability to provide people with the intended level of support, and uses the findings to inform the design of its future operating model for employment support.

DWP should also set out the information it will use to monitor jobcentres’ performance so that it can identify and share good practice from those that are doing well, as well as improve how it measures and reports outcomes, with metrics covering factors such as the sustainability and quality of employment.

Gareth Davies, head of the NAO, said: “Helping people move into and progress in work is crucial to boosting productivity and reducing economic inactivity.

“As it takes forward the government’s plans for reforming employment support, DWP should pay close attention to how it can make best use of its work coaches and ensure that people get the support they need.

“Given the key role jobcentres will play in supporting the government’s ambition to
increase the employment rate, DWP should also be transparent about how effective
they are and evaluate the impact of its changes on the system of employment support.”

Sir Geoffrey Clifton-Brown MP, Chair of the Committee of Public Accounts, said: “Jobcentres play an important role in supporting people to access and progress in work. However, a shortage of work coaches is limiting the support available to the growing number of Universal Credit claimants, with over half of jobcentres having to scale back their services.

“Future reforms to employment support will be frustrated without clear evidence on what works in supporting benefit claimants into employment. DWP must strengthen its monitoring of the performance of jobcentres, ensuring every pound spent delivers positive outcomes for individuals and the wider economy.”

Briggs calls for access to cash for vulnerable groups

The National Audit Office (NAO) recently reported that HM Treasury and the public bodies responsible for overseeing the cash system need to work together more effectively to achieve the government’s goal of safeguarding access to cash. A coordinated effort is needed to prevent vulnerable people who rely on cash for transactions from being excluded.

Ten years ago, cash was used in six out of 10 transactions but by 2019 it was used in less than three in 10 transactions. The outbreak of COVID-19 may have accelerated this trend, as data suggests that market demand for notes and coins declined by 71% between early March and mid-April during the lockdown, although demand has since been recovering.

The decline in the use of cash in transactions is putting pressure on the cash system. Commercial operators who distribute cash rely on high demand to maintain the attractiveness of their business models, and cover large fixed costs, such as bank branches and ATMs. In March 2020 the government announced that it would be bringing forward legislation to protect access to cash and address the sustainability of the cash infrastructure.

According to the NAO, the pressures on the cash system could mean that people who rely on cash find it more difficult to use cash in transactions. Published research shows that older people and those on a low income are more likely to make cash transactions.

In the two years to December 2019, there was a 17% reduction in free-to-use ATMs.  LINK3, with support from the Payment Systems Regulator, have protected ATMs in specified areas where provision is limited. 

However, while there remains a higher number of free-to-use ATMs in more deprived areas, in the two years to January 2020 the proportion of free-to-use ATMs has declined faster in those areas than in less deprived areas.

The NAO cannot currently see a clear link between the government’s aim to safeguard the consumer’s ability to use cash, and the responsibilities of the five public bodies in the cash system.

No single body has responsibility for reporting on the performance of the system in meeting the government’s aim.  In May 2019, HM Treasury established the Joint Authorities Cash Strategy Group (JACS) to coordinate work to support nationwide access to cash. Although the group has improved joint working towards government’s aims, JACS does not oversee the cash system and has no decision-making power.

Changes in cash use are having an impact on the production of coins. Coin production shrank by 65% in the last decade to 383 million UK coins a year in 2019-20, from around 1.1 billion in 2010-11.

When the Royal Mint (the Mint) replaced the old £1 coin in 2017, the public returned large volumes of all coin denominations. As a result, the Royal Mint’s stocks exceeded targets in all denominations.

At the time of the NAO’s fieldwork, the Mint had no plans to produce new 2p or £2 coins for at least ten years. To drive efficiencies, the Mint has reduced headcount by 22% on coin-making work within its currency division and scrapped two of its six plating lines.

Despite fewer people using cash for transactions, the demand for notes has continued to increase.

In 2020, the number of notes in circulation reached a record high of 4.4 billion, with a value of £76.5 billion. In 2018, the Bank of England (the Bank) estimated that only 20%–24% of the value of notes in circulation were being used or held for cash transactions, with UK households holding a further 5% as savings.

Little is known about the remainder, worth approximately £50 billion, but possible explanations include holdings overseas for transactions or savings and possibly holdings in the UK of unreported domestic savings, or for use in the shadow economy. The Bank and other government bodies have little reliable information to quantify how much is likely to be held where.

At March 2020 the Bank’s contingency holding of notes significantly exceeded its minimum guidance levels, which was partly affected by the launch of the new £20 note. Its contingency stock levels were above minimum levels for all denominations, with a total value of £39 billion, against its minimum contingency guidance level of £20.5 billion.

The Bank considered these stock levels to be appropriate in light of the transition of the £20 note to polymer. However, it is not clear from the documentation shown to the NAO what process the Bank operated to determine adequate stock levels, and how the cost implications of building stock levels were taken into account.

Recent anti-counterfeiting work by both the Bank and the Mint is delivering improvements.  Indications so far are that £5 and £10 polymer notes, with new security technology, have reduced the incidence of counterfeiting compared to equivalent paper notes. In addition, since the Mint introduced new advanced security technology, surveys have found very low counterfeiting rates for the new £1 coin and other denominations.

The NAO recommends that HM Treasury should set out more clearly the specific outcomes it wants the cash system to deliver for consumers and small businesses, and how this should be balanced against costs.

To drive efficiency, the Mint and the Bank should maximise opportunities to learn from each other’s experiences of cash production and align production capacity closely to future needs.

Gareth Davies, head of the NAO, said: “As society progresses towards the wide use of digital payments, the use of cash in transactions is dwindling. It may become harder for people to access cash when they need it and those without the means to pay digitally will struggle if cash is not accepted.

“HM Treasury now works more closely with the public bodies in the cash system to achieve the government’s goal of safeguarding access to cash. However, the approach is fragmented, and it is not clear that the action being taken will keep up with the pace of change.”

Lothian MSP, Miles Briggs, said: “Edinburgh and the Lothians have been moving away from cash over the last decade, but there are many people who still rely on using cash.

“The Covid-19 pandemic has accelerated the use of contactless payments which is not convenient for everyone.

“The UK and Scottish Government must work together to ensure that  people who prefer using cash to manage their money have easy access to it.”

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Government action on coronavirus in England ‘a catalogue of errors’

A National Audit Office (NAO) report has catalogued the UK Governement’s response to the coroanvirus pandemic.  UNISON says the report is ‘a catalogue of errors’ and highlights a ‘complete absence of planning or thought for social care’.

The report by the National Audit Office (NAO) provides a factual overview of the response by the Department of Health and Social Care (DHSC) and other bodies during March and April 2020 to prepare the NHS and adult social care in England for the COVID-19 pandemic.

It is the second report in the NAO’s programme of work on government’s response to the outbreak.

After declaring a Level 4 National Incident in relation to COVID-19 in late January, on 17 March the NHS set out measures to prepare for a surge in infections. From 13 March DHSC began to issue guidance to the care sector before publishing an action plan for adult social care on 15 April.

So far, government has allocated £6.6 billion from the Coronavirus Emergency Fund to support the health and social care response to COVID-19 and £3.2 billion directly to local authorities to respond to COVID-19 pressures across local services.

Action taken by the NHS to increase capacity meant there were enough beds and respiratory support nationally at the peak of the outbreak in April.

Between mid-March and mid-April, the NHS increased the number of beds available for COVID-19 patients from 12,600 to 53,700, by, for example, discharging patients and postponing elective, or planned, procedures.

Planned activity fell by 24% in March 2020 compared to March 2019. The NHS also contracted with private hospitals to use up to an additional 8,000 beds, and established temporary Nightingale hospitals.

This meant that nationally the number of COVID-19 patients never exceeded the number of available beds.

From early March to mid-May, available ventilators and other oxygen support also increased, with the number of mechanical ventilators rising from 9,600 to 13,200. Over the April peak, the NHS also met the national demand for oxygen supply.

Other measures implemented to help the NHS cope with the outbreak included the temporary deployment of 18,200 additional staff to clinical and support roles, of which around 8,000 were retired or former staff making themselves available for such roles.

There have been numerous outbreaks of COVID-19 within adult care homes in England, with more than one in three reporting an outbreak between 9 March and 17 May. This peaked at just over 1,000 homes in the first week of April.

Some parts of the country were more affected than others, with the North East being the area with the largest proportion of its care homes (just under half) reporting an outbreak by 17 May.

Patients discharged quickly from hospitals between mid-March and mid-April were sometimes placed in care homes without being tested for COVID-19.

On 17 March, hospitals were advised to discharge urgently all in-patients medically fit to leave in order to increase capacity to support those with acute healthcare needs.

Between 17 March and 15 April, around 25,000 people were discharged from hospitals into care homes, compared with around 35,000 people in the same period in 2019.

Due to (UK) government policy at the time, not all patients were tested for COVID-19 before discharge, with priority given to patients with symptoms. On 15 April, the policy was changed to test all those being discharged into care homes. It is not known how many patients discharged to care homes had COVID-19 at the point they left hospital.

The £3.2 billion funding for local authorities was to help them respond to COVID-19 pressures across all the services they deliver, including adult social care. Some in the sector are concerned that local authorities have not increased the rates they pay to care providers. In a survey by the Association of Directors of Adult Social Services, around half of local authorities said they were temporarily increasing rates.

Testing for health and social care workers has faced challenges.

On 17 March the NHS announced that testing would begin being rolled out to NHS staff with symptoms. Limits on testing capacity meant tests started to be rolled out to symptomatic NHS staff from 27 March.

This was extended to care workers on 15 April and to the rest of their households two days later. From 28 April, all care home staff were eligible for tests but the DHSC capped the daily amount of care home tests at 30,000, to be shared between staff and residents.

The government does not know how many NHS or care workers have been tested in total during the pandemic.

Based just on tests carried out by the NHS, NHS England & NHS Improvement estimates that the number of NHS staff and the people they live with who were tested increased from 1,500 to 11,500 a day during April.

A range of bodies across health and social care have raised concerns about the supply of personal protective equipment (PPE).

At the start of the outbreak, the only central stockpile of PPE was designed for a flu pandemic. Although an independent committee advising on stockpile contents had recommended in 2019 that items such as gowns and visors should be included, these had not been stockpiled.

The central procurement route set up to supply PPE during the outbreak met the modelled PPE requirement (under a worst case scenario) for some items in NHS trusts, but distributed 50% or less of the modelled requirement for gowns, eye protectors, or aprons. It only addressed a small proportion of the modelled requirement for PPE among social care providers.

Within its wider programme of COVID-19 related work, the NAO will undertake more detailed assessments of specific elements of the health and social care response, which will also help to identify lessons for subsequent stages of this pandemic and other future emergencies.

Launching the report, Gareth Davies, the head of the NAO, said: “This report demonstrates the enormous efforts of staff across health and social care to respond at speed to the unprecedented challenge of the COVID-19 pandemic.

“While we have not sought to evaluate government’s response in this report, our work raises some important considerations.

“The speed and nature of the response in health and social care has been shaped by longstanding differences between the sectors and ongoing financial pressures. Government’s ability to increase beds, ventilators, PPE and testing has varied in part because of the number of other bodies, both national and international, with which it has had to engage.

All of these issues need to be taken into account as government plans for the later phases of the pandemic and future emergencies.”

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Commenting on the report, UNISON assistant general secretary Christina McAnea said: “This is a catalogue of errors and highlights once again a complete absence of planning or thought for social care.

“Discharging patients to care homes without testing was simply scandalous and accelerated the spread of the virus among an obviously high-risk group.

“This report confirms what staff have said from the start, that the supply of protective equipment in social care was woefully inadequate.

“And it makes clear the (UK) government doesn’t know how many people have actually been tested in care.

“It’s plain the care sector was out of sight, out of mind in the early stages of the pandemic. The result has been a tragic and catastrophic loss of life.

“When the government announced compulsory face coverings for the NHS but made no mention of care, it was clear lessons haven’t been learned. The sector’s still being treated as an afterthought.”

Audit Office report condemns Universal Credit roll-out

“The Department has kept pushing the Universal Credit rollout forward through a series of problems. We recognise both its determination and commitment, and that there is really no practical choice but to keep on keeping on with the rollout. 

“We don’t think DWP has shown the same commitment to listening and responding to the hardship faced by claimants. Maybe a change of mind set will follow the publication of the claimant survey on 8 June. We think the larger claims for Universal Credit, such as boosted employment, are unlikely to be demonstrable at any point in future. Nor for that matter will value for money.”  

Amyas Morse, head of the National Audit Office, 15 June 2018 Continue reading Audit Office report condemns Universal Credit roll-out

Welfare reforms have fuelled homelessness, says Audit Office

The Westminster Government has not evaluated the impact of its welfare reforms on homelessness, or the impact of the mitigations that it has put in place, according to the National Audit Office.  The National Audit Office, which scrutinises public spending for Parliament and is independent of government, is critical of the government’s welfare reforms and says a ‘light touch’ response to problems isn’t working. Continue reading Welfare reforms have fuelled homelessness, says Audit Office