Recommendations & Conclusions
5 items
2
Recommendation
Thirty-Third Report - Underpayments of …
Not Addressed
The Department’s complacency about the level of underpayments inherent in its approach to administering State Pension has led it to fail pensioners. The Department’s highly manual systems and complex State Pension rules has led to calculation errors and the underpayment of thousands of pensioners. The Department, however, argued that low …
Read more
The Department’s complacency about the level of underpayments inherent in its approach to administering State Pension has led it to fail pensioners. The Department’s highly manual systems and complex State Pension rules has led to calculation errors and the underpayment of thousands of pensioners. The Department, however, argued that low annual error rates on State Pension led it to focus assurance attention elsewhere, despite the detrimental impact on those underpaid. In addition, its quality assurance arrangements were inadequate and missed opportunities to detect, correct or prevent these errors. The Department hopes that, over time, it will become better at identifying small-scale errors that may mask more systemic issues. However, errors continue to be made even when re-assessing pensions awards as part of the correction exercise, leaving thousands of pensioners still not receiving what they are due. And examples such as the absence of regular reporting on State Pension enquiries make us concerned that senior management is not focused on designing a data strategy that detects errors in a more systematic way. 6 Underpayments of the State Pension Recommendation: The Department should start treating underpayments on State Pension as seriously as overpayments and set out to the Committee in its Treasury Minute response to this report what it is going to do both to prevent future errors and to strengthen its detection of systemic issues that lead to errors.
Show less
Government response AI summary
The response references clear, ambitious targets and a regulatory environment that stimulates competition and investment in the market. It provides information about gigabit coverage and full fibre networks.
Read full response →
HM Treasury
6
Recommendation
Thirty-Third Report - Underpayments of …
Not Addressed
In paying pensioners, a lump sum of their arrears, the Department may not be fully restoring them to the position that they would be in had the Department paid them correctly in the first place. The payment of a lump sum of arrears may affect the pensioner’s current or future …
Read more
In paying pensioners, a lump sum of their arrears, the Department may not be fully restoring them to the position that they would be in had the Department paid them correctly in the first place. The payment of a lump sum of arrears may affect the pensioner’s current or future entitlement to other benefits such as Pension Credit, housing benefit or social care provided by local authorities. The Department has demonstrated little interest in accounting for financial consequences of receiving a lump sum in its pensions reassessment and considers it to be the pensioner’s responsibility to advise the relevant authority should their circumstances and eligibility for benefits change. The Department added special payments of interest on top of arrears payments to those who contacted the Department about underpayments before January 2021 but chose to stop paying interest once the formal correction exercise began. The Department argued that it took this decision, jointly with ministers, for consistency with previous correction exercises and to comply with the principles of Managing Public Money. However, we do not think there is a convincing justification for treating those in scope of the exercise differently to those contacting the Department prior to it. With underpayments going as far back as 1985, the Department is unlikely to be restoring the pensioners to a position as if the issue never occurred, as would be expected according to the principles of Managing Public Money. Recommendation: The Department should establish the full extent of the impact on pensioners of receiving a lump sum of arrears of benefit, particularly for larger sums of arrears. It should seek assurance from local authorities that people are not treated prejudicially compared to how they would have been treated had they received the money over their proper period of entitlement. It should, as part of its Treasury Minute, set out how its payment of arrears without interest or further compensation is c
Show less
Government response AI summary
The response outlines milestones for assessing delivery beyond 2025, including market surveys, contract signings, and clarity on premises beyond the programme's scope. It expects to have robust profiles for the period beyond 2025 by Summer 2023.
Read full response →
HM Treasury
7
Recommendation
Thirty-Third Report - Underpayments of …
Not Addressed
Given the nature of the underpayments identified there must be a risk that similar, unidentified errors exist elsewhere in the State Pension caseload. For example, the NAO report states that “the Department did not find any significant evidence that it had failed to properly process cases where a pensioner had …
Read more
Given the nature of the underpayments identified there must be a risk that similar, unidentified errors exist elsewhere in the State Pension caseload. For example, the NAO report states that “the Department did not find any significant evidence that it had failed to properly process cases where a pensioner had notified it of their divorce”. However, Sir Steve Webb has told us he believes the scope of the 8 Underpayments of the State Pension correction exercise is too narrow. He believes that the exercise should be extended to included divorced women as he has identified several cases of underpayments to date where similar manual processing errors have occurred. Recommendation: The Department should write to the Committee to explain how it has assessed the risk of systemic underpayments to divorced women. It should also explain how it will review other detected underpayments to assess whether there is a systemic cause and take steps to extend the correction exercise as required. The Department should provide this Committee with a detailed description of the lessons learnt from this episode, including how it responds to concerns and queries from the public. Underpayments of the State Pension 9 1 Administration of State Pension
Show less
Government response AI summary
Greensill Capital marketed its salary advance scheme, Earnd, to NHS trusts from 2019 and charged no fee to employers and employees for using the service. Based on a report by the National Audit Office, the Committee took evidence on Monday 15th November 2021 from the …
Read full response →
HM Treasury
10
Conclusion
Thirty-Third Report - Underpayments of …
Not Addressed
The Department told us it changed its quality assurance framework over the LEAP exercise and business-as-usual State Pension processing.21 Following our evidence session the Department explained that, as part of its quality strategy review it reviewed its training products, amended the instructions used by front-line staff to ensure they are …
Read more
The Department told us it changed its quality assurance framework over the LEAP exercise and business-as-usual State Pension processing.21 Following our evidence session the Department explained that, as part of its quality strategy review it reviewed its training products, amended the instructions used by front-line staff to ensure they are clearer and put in place a checking regime. It added that it is using the findings of checks to identify individual training needs and improve processes and instructions.22
Show less
Government response AI summary
The Department rejects the Committee's assertion and claims to have been taking action to prevent future errors since Summer 2021 by reviewing its Quality Framework.
Read full response →
HM Treasury
12
Conclusion
Thirty-Third Report - Underpayments of …
A Legal Entitlements and Administrative Practices (LEAP) exercise is a systematic review of cases at risk of being underpaid to help the Department ensure it has met its legal responsibilities. The Department for Work & Pensions (the Department) uses LEAP exercises to make key decisions in situations where a mistake …
Read more
A Legal Entitlements and Administrative Practices (LEAP) exercise is a systematic review of cases at risk of being underpaid to help the Department ensure it has met its legal responsibilities. The Department for Work & Pensions (the Department) uses LEAP exercises to make key decisions in situations where a mistake has been made that affects a large volume of cases. The exercise weighs the individual impact on each claimant against the overall impact on the Department and tries to establish a proportionate response. The LEAP guidelines do not have any legal standing, but adherence to it can be used in future litigation to show that the Department has taken a rational approach to the decision.26
Show less
HM Treasury