Recommendation 24

In 2019, we concluded that HMCTS could not demonstrate whether claimed savings were attributable to the reforms and so taxpayers could not be confident they were getting what was promised. We recommended that HMCTS should set out how it intended to measure and monitor the benefits arising from the reform.49 In response, HMCTS developed an approach to help it understand how efficiently services are working. Its unit cost calculations compare the running costs of a service with the output produced, for example the number of cases resolved, to calculate the cost per person using the service. However, HMCTS acknowledged that it needed to do more to refine its approach. It explained that while the methodology allowed it to monitor organisational costs, it cannot differentiate between the impact of efficiencies gained from introducing reforms and the impact of other factors – for example, increases in cost due to changes in demand.50 43 Q 86; Letter from Nick Goodwin, Chief Executive HM Courts and Tribunals to Dame Meg Hillier MP, Chair of Committee of Public Accounts, 17 March 2023 44 Qq 89, 93, C&AG’s Report, para 3.8, Figure 11 45 Q 88; C&AG’s Report, paras 3.11–3.13 46 Q 90 47 Committee of Public Accounts, Transforming courts and tribunals: progress review, Second Report of Session 2019, 4 November 2019, para 7; In its 2021 business case, HMCTS provided an updated estimate of £237 million in expected yearly savings for its previous 2019 business case. 48 C&AG’s Report, paras 1.11, 1.15 49 Committee of Public Accounts, Transforming courts and tribunals: progress review, Second Report of Session 2019, HC 27, 5 November 2019, para 5 50 Qq 94–95; C&AG’s Report, para 3.5–3.6 Progress on the courts and tribunals reform programme 17