Select Committee · Public Accounts Committee

Performance of the UK Security Vetting service

Status: Closed Opened: 19 Jan 2023 Closed: 21 Jul 2023 3 recommendations 21 conclusions 1 report

UK Security Vetting (UKSV) was established in January 2017 and since April 2020 has been part of the Cabinet Office’s Government Security Group. Prior to its move to the Cabinet Office it was part of the Ministry of Defence and UKSV is still managing legacy elements of the transition. Following publication by the National Audit …

Reports

1 report
Title HC No. Published Items Response
Fifty-Third Report - The performance of UK Security Vetting HC 994 12 May 2023 24 Responded

Recommendations & Conclusions

24 items
2 Recommendation Fifty-Third Report - The performance of… Accepted

Require Cabinet Office to improve customer forecasting and UKSV resilience to demand changes.

The Cabinet Office is over reliant on customer demand forecasts and failed to predict changes in demand for security vetting. UKSV’s customers provide demand forecasts each October to enable it to assess what level of resources it will need for the following financial year. UKSV relies on customers to provide …

Government response. The Cabinet Office agrees and will improve UKSV's forecasting and resilience by undertaking a full review of processes, engaging with other departments and major customers, and implementing new agreements on demand management.
HM Treasury
3 Conclusion Fifty-Third Report - The performance of… Accepted

Develop Cabinet Office plan to avoid repeatedly extending DV security clearance renewals.

We are concerned about the level of risk created by the Cabinet Office’s decision to repeatedly defer renewals for DV clearances. Existing DV clearances are 6 The performance of UK Security Vetting normally reviewed after seven years to ensure that individual’s circumstances have not materially changed and that the initial …

Government response. The government agrees to address the backlog of DV renewals by providing a significant injection of surge resources, including HMRC personnel, to UKSV this financial year, aiming for sustained performance by 2024.
HM Treasury
4 Recommendation Fifty-Third Report - The performance of… Accepted

Require Cabinet Office to detail UKSV's required resourcing and close staff shortfalls.

UKSV cannot deliver timely security vetting across government with its current staff levels. Despite its essential role in protecting national security, UKSV has been under-staffed to meet customer demand forecasts since its inception in 2017. In April 2021, when faced with an upsurge in demand for its services following the …

Government response. The Cabinet Office has approved funding for a temporary surge of contingent labour and fixed-term contracts for UKSV in 2023-24 to clear backlogs. It will review funding in September 2023 and present a transformation resourcing model in an Outline Business …
HM Treasury
5 Conclusion Fifty-Third Report - The performance of… Accepted

Review UKSV's governance structures to enable urgent security vetting transformation programme.

The governance structure of UKSV within Cabinet Office is a barrier to transformation. UKSV’s chief executive and the government chief security officer have low levels of delegated spending authority which means they require approval from the Cabinet Office Approvals Board for any spending over £500,000. That Board has repeatedly refused …

Government response. The government has completed an independent governance review and will implement an enhanced governance structure, including better representation of Cabinet Office functions and customers, and clearer distinctions between policy approval and delivery. Implementation began in June 2023.
HM Treasury
6 Recommendation Fifty-Third Report - The performance of… Accepted

Set out a clear implementation plan for security vetting transformation with realistic milestones.

We are not convinced that current plans for the transformation of security vetting are any more likely to succeed than previous failed attempts. The Cabinet Office’s first attempt at modernising the IT infrastructure for national security vetting failed, after unknowingly running almost 50% over budget and resulting in a £2.5 …

Government response. The government has commissioned a 10-week enhanced discovery phase to advise on vetting transformation delivery, which will inform an Outline Business Case for October 2023. This business case will include a high-level implementation plan, which the Cabinet Office will share …
HM Treasury
1 Conclusion Fifty-Third Report - The performance of… Accepted

UK Security Vetting is the main government provider of national security clearances.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office about the performance of UK Security Vetting (UKSV).1 UKSV, which sits within the Cabinet Office, is the main government provider of national security vetting. Security vetting provides assurance on individuals working …

Government response. The government has made strong progress in the Delivery Stabilisation Programme, with significant increases in vetting case completions and reduced turnaround times, supported by new surge resources. It has set milestones to fully stabilise vetting services for DV Initials by …
HM Treasury
7 Conclusion Fifty-Third Report - The performance of…

Cabinet Office lacks evidence on job abandonment caused by security vetting delays.

The Cabinet Office could not provide us with any information on how many people were abandoning jobs due to vetting delays. The NAO reported that cancellations of clearance requests were 19% higher from April to November 2022 compared with the same period in 2021–22, and that requests were most likely …

HM Treasury
8 Conclusion Fifty-Third Report - The performance of… Accepted

UKSV struggled with fluctuating demand and significant increases for security clearances.

UKSV relies on customer demand forecasts in October ahead of each financial year, to enable it to plan for the resources it will need. For 2020–21, customers over-forecast how many clearances they were likely to need, unaware of the coming COVID-19 pandemic, which caused a drop in demand for clearances. …

Government response. UKSV is undertaking a full review of forecasting and demand planning processes in collaboration with customers for 2024/25, planning engagement with other government departments for best practice, and implementing agreements with customers for demand handling, alongside improved management information.
HM Treasury
9 Conclusion Fifty-Third Report - The performance of… Accepted

UKSV improves customer demand forecasting for security clearances using enhanced predictive analytics.

The Cabinet Office told us that while some departments are very good at forecasting, others struggle. UKSV has therefore put a lot of effort into improving its management information to help it work with customers on predictive analytics, to improve the accuracy of their forecasts. The Cabinet Office said UKSV …

Government response. The government agrees to improve forecasting and demand planning for 2024/25, with UKSV undertaking a full review of processes, planning engagement exercises, and proactive engagement with high-demand customers.
HM Treasury
10 Conclusion Fifty-Third Report - The performance of… Accepted

UKSV improves resilience through enhanced forecasting, increased automation, and flexible resourcing models.

When we asked what was being done to make UKSV more resilient and better able to deal with future upsurges in demand, the Cabinet Office offered us three solutions: 15 Q 26 16 Qq 22, 23; C&AG’s 2023 Report, Figures 10 and 11 17 C&AG’s 2023 Report, paras 2.3, 2.4 …

Government response. The government agrees with the implied need for resilience, committing UKSV to a full review of forecasting and demand planning processes, engagement exercises, and proactive customer engagement for 2024/25.
HM Treasury
11 Conclusion Fifty-Third Report - The performance of… Accepted

Repeated deferrals of Developed Vetting renewals created backlogs and acknowledged security risks.

Each DV clearance is normally reviewed after seven years to ensure that individuals’ circumstances have not materially changed and that the initial clearance remains valid. In 2018 the Cabinet Office Government Security Board first took the decision to implement a 12-month extension to some renewals to help UKSV recover performance …

Government response. The government plans to stabilise the DV renewal service line by March 2024, supported by a significant injection of surge resources for the current financial year to clear the backlog and ensure continuity of service on other products.
HM Treasury
12 Conclusion Fifty-Third Report - The performance of… Accepted

Prioritising new Developed Vetting clearances causes service level deterioration for other clearance types.

The Cabinet Office defended the repeated policy decision to defer renewals on the grounds that it was “risk-based and a decision taken with our customers”. It acknowledged that the cumulative impact of deferring renewals for several years created additional challenges but also said that “if you have a choice between …

Government response. The government plans to stabilise the DV renewal service line by March 2024, supported by a significant injection of surge resources for the current financial year to clear the backlog and ensure continuity of service on other products.
HM Treasury
13 Conclusion Fifty-Third Report - The performance of… Accepted

UK Security Vetting consistently fails to meet targets for aftercare checks.

The Cabinet Office sought to reassure us that UKSV did not stop processing renewals altogether, but that it had continued to process renewals at a lower rate, adopting a risk- based, data-driven approach. “Should an adverse indicator arise [from newly introduced automated data checks], we absolutely then moved forward with …

Government response. The government agrees and states UKSV plans to stabilise the DV renewal service line by the end of March 2024, supported by a significant injection of surge resources to address the backlog.
HM Treasury
14 Conclusion Fifty-Third Report - The performance of… Accepted

UK Security Vetting has experienced persistent and significant understaffing since inception.

UKSV has been under-staffed to meet customer demand forecasts since its inception in 2017, which has had negative impacts on its performance. In April 2021, when demand surged following the relaxation of COVID-19 restrictions, UKSV had 669 full-time equivalent (FTE) staff against the 985 FTE it expected to need to …

Government response. The government states it has implemented measures to address understaffing by securing funding and approvals for a temporary surge of contingent labour and fixed-term contracts for 2023-24 to clear backlogs and stabilise performance.
HM Treasury
15 Conclusion Fifty-Third Report - The performance of… Accepted

UKSV understaffing necessitates service trade-offs, impacting aftercare checks and DV renewals.

Under-staffing has led UKSV to make trade-offs in what service areas it focuses on. For example, the UKSV chief executive told us that by focusing on new DV clearances it was unable to resource aftercare checks to the levels needed.35 Likewise, the focus on new DV clearances saw average clearance …

Government response. UKSV has identified a need for and secured funding for a temporary surge of contingent labour for 2023-24 to address backlogs and stabilise performance, making progress on recruitment and training. For the transformation programme, efforts are ongoing to recruit digital …
HM Treasury
16 Conclusion Fifty-Third Report - The performance of… Accepted

UK Security Vetting's current staffing remains significantly below estimated operational requirements.

The Cabinet Office was keen to point to UKSV’s use of surge staff from other departments,37 although there were just 13 such staff between January and November 2022 alongside about 50 contingent labour staff (see also Figure 1).38 It said the use of more contingent labour solved the need to …

Government response. The government states it has implemented measures, securing funding for a temporary surge of contingent labour and fixed-term contracts for 2023-24 to clear backlogs, and is making progress recruiting digital professionals for transformation.
HM Treasury
17 Conclusion Fifty-Third Report - The performance of… Accepted

UK Security Vetting staff suffer significant change fatigue from continuous organisational shifts.

When asked about the mismatch between UKSV’s claims of increased productivity and staff survey results showing a high level of disengagement, UKSV’s chief executive pointed to the innate pride of its staff in the work they do to protect national security but admitted that many are suffering from change fatigue. …

Government response. The government states it has implemented measures, securing funding for a temporary surge of contingent labour and fixed-term contracts for 2023-24 to clear backlogs, and is making progress recruiting digital professionals for transformation.
HM Treasury
18 Conclusion Fifty-Third Report - The performance of… Accepted

Recruitment challenges for digital roles severely impede the vetting transformation programme's progress.

Recruitment challenges have also hampered progress on the vetting transformation programme. In November 2021, UKSV only managed to fill five out of 44 digital roles despite multiple costly, labour-intensive campaigns, with uncompetitive salaries seen as a key factor. In September 2022, despite a partial exemption for digital roles from the …

Government response. UKSV has identified a need for and secured funding for a temporary surge of contingent labour for 2023-24 to address backlogs and stabilise performance, making progress on recruitment and training. For the transformation programme, efforts are ongoing to recruit digital …
HM Treasury
19 Conclusion Fifty-Third Report - The performance of… Accepted

Cabinet Office maintains tight control over UKSV headcount and major programme spending.

The Cabinet Office took on responsibility for both security vetting policy and operational delivery in April 2020, when UKSV transitioned from the Ministry of Defence to the Government Security Group within the Cabinet Office.47 The Cabinet Office controls UKSV’s headcount, and while UKSV’s funding costs (around £43 million per year) …

Government response. The government has completed an independent governance review and commenced implementing an enhanced UKSV governance structure, which will ensure full representation of Cabinet Office functions and customers, clear distinctions in policy/delivery, and strengthened oversight.
HM Treasury
20 Conclusion Fifty-Third Report - The performance of… Deferred

UKSV's £40 million transformation programme business cases have faced repeated rejection by COAB.

UKSV has been trying, largely unsuccessfully, to modernise the vetting system since it launched a Vetting Reform programme in 2019.50 UKSV’s Chief Executive said, “if we had a magic wand and we could build a new system tomorrow, we absolutely would”.51 Whenever it has taken full business cases for its …

Government response. The Cabinet Office has contracted external support for a 10-week enhanced discovery to review delivery models for Vetting Transformation, with outputs forming an Outline Business Case for consideration in October 2023.
HM Treasury
21 Conclusion Fifty-Third Report - The performance of… Accepted

Extensive governance and customer consensus requirements impede UK Security Vetting's change programmes.

When asked about her past experiences, UKSV’s chief executive cited governance as the main difference between her experience of running a government change programme compared with running a private sector change programme.54 She said that there was a lot of governance around investment and the change agenda, as UKSV had …

Government response. The government has completed an independent governance review that endorsed the committee's findings, and UKSV has commenced implementation of an enhanced governance structure addressing observations, including corporate and customer representation, distinct policy/delivery management, and strengthened oversight.
HM Treasury
22 Conclusion Fifty-Third Report - The performance of… Deferred

Previous IT modernisation efforts led to significant budget overruns and project failures for UKSV.

As part of the Vetting Reform programme, the Cabinet Office planned to replace UKSV’s legacy IT system, the National Security Vetting System, through the Future Vetting System programme, by February 2020 at a cost of £19 million. Failures in project management meant that the programme ran £9 million over budget …

Government response. The Cabinet Office has commissioned a 10-week enhanced discovery phase with external support to review delivery models for Vetting Transformation, which will inform an Outline Business Case to be considered in October 2023.
HM Treasury
23 Conclusion Fifty-Third Report - The performance of… Deferred

Cabinet Office's cautious approach delays Vetting Transformation programme following past IT modernisation failures.

The Cabinet Office told us that following its bad experience with its first attempt to modernise IT, it was now adopting a more cautious approach to transformation, and that it rejected the business plan for the Vetting Transformation programme on a few occasions because it was “not totally happy with …

Government response. The Cabinet Office has contracted external support for a 10-week discovery phase to review and advise on Vetting Transformation delivery models, with outputs forming an Outline Business Case for consideration in October 2023.
HM Treasury
24 Conclusion Fifty-Third Report - The performance of…

Vetting transformation customers frustrated by programme delays, lack of input, and substantial underspend.

The Cabinet Office was keen to confirm that it has full customer support for vetting transformation.62 For example, centralised decision making is an important component of the transformation plan whereby UKSV takes the whole decision on clearance rather than allowing departments to make the final decision based on UKSV’s advice.63 …

HM Treasury

Correspondence

1 letter
DateDirectionTitle
14 Mar 2023 Correspondence from Vincent Devine, Director General & Government Chief Securit…