Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Rejected
The Department has repeatedly failed to achieve savings targets for the child maintenance scheme over...
Recommendation
The Department has repeatedly failed to achieve savings targets for the child maintenance scheme over the past decade and again risks overpromising on the benefits of its current transformation programme. The Department has reduced the cost to the taxpayer of administering child maintenance by £172 million from £494 million in 2011–12, to £322 million in 2020–21, in line with its smaller caseload and new income from charging. However, the Department has failed to deliver on its promised efficiency savings. The amount of money it needs to administer child maintenance remains £88 million higher than the £234 million promised by the Department in its 2013 Business Case. In addition, the cost to administer the return of £1 of maintenance payments has increased from 35p in 2011–12 to 36p in 10 Child Maintenance 2020–21. The Department has high hopes for its £30 million digital transformation programme and aims to further reduce annual costs by £128 million (40%) to £194 million for 2024–25 whilst improving both compliance and customer service. However, given the Department’s track record, we are not optimistic about the prospects for this latest programme. Recommendation: As part of its Treasury Minute response, the Department should set out new cost-effectiveness and wider value for money targets against which it can be held to account. Child Maintenance 11 1 The child maintenance landscape
Government Response Summary
The government disagrees, stating their Transformation Programme introduces changes to improve efficiency and automation. They report performance in Annual Reports and Accounts, and regularly review services and programmes to ensure value for money.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The department’s Transformation Programme introduces a range of changes that improve the efficiency of key activities, including the automation of high-volume changes, improving the online offering to enable customers to self-serve their query or report their change without needing to call CMS. It has also launched a new on-line service and live chat replacing a £3.3 million per annum outsourced contract. The increased levels of automation mean higher levels of customer interactions are processed without caseworker intervention, reducing unit costs. The department reports on its performance in its Annual Report and Accounts. The most recent DWP accounts for financial year 2021-22 were laid on 7 July 2022 . The department regularly reviews its services and programmes to ensure it is delivering value for money.