DWP Operations Business Plan 2013/14 June 2013

1
DWP Operations
Business Plan
2013/14
June 2013
DWP Operations Business Plan | 2013/14
DWP Operations Business Plan | 2013/14
2
Contents
Operations Director General – Foreword
3
Our priorities
4
Our story so far
6
Our road ahead
8
Our organisation
10
Our partners
11
Performance Agreement 2013/14
12
Measures and Planning Assumptions for 2013/14
13
Our resources 2013/14
17
DWP Operations Business Plan | 2013/14
3
Operations Director General – Foreword
This document sets out our plans and
ambitions for 2013/14 in a way that
I hope will be useful and meaningful
to everyone in DWP Operations.
2013/14 is a
key year for
Operations – we
will be helping to
deliver the biggest
reform of welfare
in 60 years whilst
continuing to
review, improve
and deliver our
existing services.”
As we enter 2013/14, the environment in
which we now operate, both internally
and externally, has changed dramatically
and will continue to change. As we
continue on our journey to deliver the
welfare reforms – Universal Credit,
Personal Independence Payment,
the Benefit Cap and many more we will implement the new policies
alongside new ways of working.
Since my appointment in October 2012,
I have witnessed a lot of excellent work
going on across the operational side of
our business. Some of our achievements
from 2012/13 are highlighted in this
document. I would like to take this
opportunity to thank everyone for
their contribution and hard work.
Whilst celebrating and acknowledging all
that we have achieved we cannot afford
to stand still. The economic climate
means we are going to have to deliver
more for less, and service levels need
to improve if we are to meet claimant
and customer expectations. It is against
this background that I have set six key
operational principles and goals for
2013/14 which are based around:
• Service
• Targets
• Once and done
• Real time
• Digital
• Quality
You can read more about
these principles overleaf.
We all need to embrace these key
principles if we are to become an
extraordinary Department. So
let’s use this year to have a real
and sustained focus on driving
down our costs and driving up our
service levels. I look forward to
working with you all to that end.
Noel Shanahan
Operations Director General
DWP Operations Business Plan | 2013/14
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Our priorities
Our Business priorities reflect the challenges we must meet to deliver for our claimants and customers, our
Ministers, our partners and the Department but equally importantly they enable us to contribute towards
the delivery of the Coalition Government’s Social Justice agenda to ensure that the most disadvantaged in
society are supported to turn their lives around.
Our priorities are:
•
Working Age – Encouraging
work and making work pay.
•
Children and Families –
Recognising the importance
of family in providing the
foundation for every child’s life.
•
•
Disability and people with a
health condition – Enabling
disabled people to fulfil their
potential and have opportunities
to play a full role in society.
For retirement – Providing
a firm foundation and
promoting saving.
These business priorities are
underpinned by the need to drive
up the level of service we provide to
claimants and customers, and drive
down our costs by eradicating waste
and inefficiency from our business
processes. We will do so by focusing
on the following during 2013/14:
Service: to put the claimant and
customer at the centre of what
we do and to improve the service
that we offer to them. We all need
to be focused on the end to end
customer journey and understand
how actions in our own business
patch can have an impact on
interactions with the customer
at other stages of the process.
Targets: many of our targets do
not meet customer expectations,
which means we expend significant
resources dealing with customers
chasing progress or in dealing with
their complaints about service levels.
Let’s aim to meet those customer
expectations – that means not just
meeting our current targets but
smashing them by some margin.
Once and done: we need to ensure
that when we take a new task
or transaction from a customer
that it gets done in the most
efficient and effective way and
that it happens accurately with no
need for corrections later in the
process from other colleagues or
from the customer. This requires
a strong focus on quality.
Real time: we need to design
our processes so that wherever
possible the task can be completed
at the time of initial interaction
with the customer, be that on-line,
on the phone or face to face.
Both Once and done and Real
time will improve the customer
experience, drive down handovers,
and reduce repeat calls all of which
will make us more efficient.
Digital: let’s look to make the on-line
customer experience so good that it
naturally pulls customers away from
the traditional channels of telephony
and face to face and that it becomes
the customers’ preferred choice of
interaction with the Department.
Quality: but there will be little
benefit in delivering the above if
we do so at the expense of the
quality. It makes more sense to
take the appropriate amount of
time to complete the task and
do it once, rather than do it at
speed and have to do it twice.
DWP Operations Business Plan | 2013/14
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Our Values are our guiding principles for how we will deliver our
services and they underpin our commitment to putting claimants and
customers first, focusing on not only what we do but how we do it.
They are:
•
Achieving the best – using our resources efficiently and
effectively to ensure high and consistent levels of service.
•
Respecting people – treating our claimants and
customers and each other with respect.
•
Making a difference – supporting, challenging and
inspiring others to improve their lives.
•
Looking outwards – working with others and
constantly getting better at what we do.
Our seven Cultural Challenges are our guiding principles
for how we will demonstrate our values.
They are:
•
Working collaboratively
•
Taking responsibility and being accountable
•
Tolerating risk
•
Encouraging and building trust in our relationships
•
Leading visibly
•
Challenging constructively
•
Facilitating innovation.
DWP Operations Business Plan | 2013/14
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Our story so far…
2012/13 has been a busy and progressive year for Operations. We have seen several changes within our
senior leadership team and we have expanded, welcoming in colleagues from Child Maintenance Group
and Universal Credit Directorate.
We are now truly ‘one’ Operations
working together with corporate
colleagues as One DWP. Throughout
a year of significant changes we
have continued to maintain our
business as usual whilst at the same
time introducing a range of new
initiatives which form part of our
challenging welfare reform agenda.
We have changed our
approach to many
of the huge tasks we
undertake... many
people are either doing
or preparing to do
completely different jobs.”
Whilst we can justifiably be
proud of all our achievements
last year, I think it is worth taking
this opportunity to reflect on
some of last year’s specific
highlights across our business.
•
We improved our service:
• Increased the volume
of visits to the Benefit
Advisor Service by 55%.
• Increased the % of calls
answered in our Contact Centres
between April 2012 and January
2013 to 85% compared with
82.8% in the year before
• Separated Attendance
Allowance from Disability Living
Allowance and transferred
it from Benefits Directorate
to Pensions Directorate.
• Extended Tell Us Once service
to 358 local authorities
•
Successfully integrated new
ways of working in Fraud
investigations resulting in 10,850
prosecutions and through
these investigations increased
the average recoverable
overpayments by 14%.
Rolled out the two-tier
complaints process, putting the
focus on resolving complaints
as close as possible to the
first point of contact.
We reduced our costs:
• Delivered savings of £364
million two years ahead
of schedule through our
Benefit Integrity work.
• Increased the number of
Jobseekers’ Allowance claims
on-line from 23.7% at the start
of the year to 55.2% at the end.
•
•
•
•
Increased the number of
State Pension claims on-line
from 0.7% at the start of the
year to 15.9% at the end.
Generated savings of £106
million through Spend to
Save activity on benefits paid
to pensioners and carers.
Reduced the Pension Credit
monetary value of error from
3.90% to 2.51% - achieved in
part by reducing the outstanding
assessed income period and
periodic case reviews by 68,000.
Achieved, through the freedoms
and flexibilities in our operating
model, a decrease of 77,500 in
the number of people claiming
Jobseekers’ Allowance this
year compared to last year.
DWP Operations Business Plan | 2013/14
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We contributed to welfare reform:
• Launched, as part of our
delivery of the Help and Support
for Separated Families(HSSF)
Programme, a distributable
web application called
‘Sorting out separation’ and
completed round one of the
Innovation Fund with seven
successful projects selected.
• Launched a new statutory
child maintenance scheme
on a pathfinder basis
in December 2012.
• Introduced contribution based
Employment Support Allowance
(ESA) time limiting for those in
the work related activity group.
related activity group introduced.
• Introduced Industrial
Injuries Disablement
Benefit rationalisation.
• Progressed Incapacity
Benefit Reassessment.
• Introduced changes to ESA
and Jobseekers’ Allowance
conditionality, sanctions
and hardship payments.
• Introduced error penalties.
• Progressed Lone Parent Obligations.
And as part of the day job we:
• Paid over £35 billion to nearly
9 million working age and
disabled claimants whilst
improving the speed and
accuracy of our service and
improving productivity.
• Responded to the Cyprus crisis
by issuing 12,000 letters to
customers in 5 hours, provided
emergency telephone service
within 24 hours, established an
emergency payment office in
the Foreign and Commonwealth
office in Cyprus within 2 days
and performed 12,000 account
transactions in one day to ensure
customers had their payments.
• Stewarded delivery of Housing
Benefit and Council Tax Benefit
totalling over £23 billion.
• Delivered over 150,000
facilitated training days through
Operational Learning.
• Introduced regular ‘Ask
the Expert’ events to build
capability in frontline skills.
• Successfully implemented the
Universal Jobmatch platform.
•
•
•
Introduced a single system
for delivering change across
Operations to ensure all
changes result in improved
customer service and/or
better ways of working.
Launched the Bright Ideas
portal with over 55% of our
people now registered and
in excess of 6,500 ideas
submitted, demonstrating a
culture with a shared ownership
of the services we provide.
Launched the Youth Contract
flexibly and secured month
on month falls in the number
of young people, aged 18-24,
claiming Jobseekers’ Allowance.
Underpinning all of these
achievements is our ‘can do’
culture. In these times of austerity,
Operations has been expected
to do even more for less.
We have changed the way
we do things to drive out
inefficiency which in turn has
enabled us to continue to improve
our services to claimants and
customers despite the financial
challenges. Last year was in many
ways a foundation year for 2013/14
where our priority will be to continue
improving the end to end journey
of all claimants and customers.
Last year was always
going to be about
preparation for the year
of change that we have
ahead, but I don’t think
anyone could have
predicted the journey we
have been on and where
we are now compared
with 12 months ago.”
DWP Operations Business Plan | 2013/14
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Our road ahead
Ministers are
entrusting all of us
in DWP to deliver
the biggest welfare
changes for 60 years…
as individuals we
should welcome the
opportunity to be
involved in something
so significant.”
Robert Devereux
Permanent Secretary
In 2012/13 Operations successfully
delivered some of the early
welfare reforms – In 2013/14
we will continue to build on this
experience to deliver some of the
most significant welfare reforms:
• Universal Credit (UC)
• Personal Independence Payment
• Social Fund Reforms
• Benefit Cap
• Child Maintenance Reform
• Appeals Reform
• Single Fraud Investigation Service
At the heart of the reforms is
Universal Credit. It will replace many
of our income-related benefits and
for the first time we will continue
to support our claimants whilst in
work to ensure that work pays. A
huge amount of effort has gone into
preparations for UC and Operations
has been actively involved in
designing the new processes.
Universal Credit will bring new
and improved ways of working for
Operations – better technology
supporting on-line claiming and
automation where possible.
Operations will work collaboratively
with colleagues in HMRC and in
local authorities, who also have
a key role in the delivery of UC.
Network Services Directorate began
taking new claims to Personal
Independence payment from
April 13. Benefits Directorate will
work with external assessment
providers to ensure a fairer and more
transparent process to ensure that
support is targeted to those who
face the greatest barriers in society.
The Social Fund Reforms enabled
us to redeploy staff on priority
areas of our business: Decision
Making and Appeals, front facing
Jobcentre roles and Short Term
Benefit Advances – all will support
the successful delivery of UC.
The Benefit Cap was introduced
in April 13 and will initially be
taken forward by local authorities
supported by Belfast Benefit Centre.
Our Work Services Directorate
will give those affected all
the support they need to find
work. In the long term it will be
administered as part of UC.
2013/14 will be a momentous year
for the Child Maintenance Group too.
As well as continuing to improve
existing schemes, they will continue
to ramp up intake onto the Child
Maintenance 2012 scheme. They will
continue to support and encourage
separated families to play an active
role in the lives of their children.
By the end of 2013 we will be well
on the way to providing a child
maintenance system that meets the
expectations of parents, taxpayers
and the Government but which
more importantly will enable us to
lift more children out of poverty.
Appeals Reform will improve
customer services and reduce
the unnecessary demand on
HM Courts and Tribunal Service
(HMCTS). Initially it will affect only
PIP cases and will see Operations
being given the opportunity to
reconsider their decision in…
DWP Operations Business Plan | 2013/14
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…every disputed case – known as
mandatory reconsideration. In
addition claimants will lodge their
appeals directly with HMCTS and
Operations will have time limits
for responding directly to HMCTS
when an appeal is lodged.
Preparations for the safe landing
of the Single Tier Pension and
Pension Credit Plus will continue
throughout 2013/14 and Pensions
Directorate will continue to actively
promote Automatic Enrolment,
encouraging customers to make
financial plans for their retirement.
Contracted Customer Services will
extend the coverage of the Tell Us
Once Service and seek approval
for the expansion of the service.
In addition they will work with
external providers to improve our
medical assessment services.
Operational Excellence will provide
a range of key services to support
the delivery of our business
priorities, significantly improving
the claimant and customer journey
and reducing inefficiencies in
our everyday processes. This will
include the management of risk,
provision of expert advice and
learning, and designing, assuring
and delivering change. In addition,
Operational Excellence will improve
the National Insurance Number
allocation process by reducing the
customer journey to under 15 days.
Reducing fraud and error remains
paramount. In 2013 our fraud
colleagues will work with HMRC
and local authorities to set up
a Single Fraud Investigation
service, continuing to investigate
suspicions of fraud and referring for
prosecution where appropriate.
Continuing to deliver and improve
our day to day business in 2013/14
whilst also implementing the reform
initiatives gives Operations an
opportunity to make a real difference
to the lives of many people. It will
be a challenge but one Operations
will meet. The changes will affect
everyone in Operations in one way
or another but ultimately they will
reshape the way Operations does its
business and for our people they will
bring developmental opportunities,
improved job satisfaction and a
more focused sense of purpose.
I believe we can be the
very best in Government
and that is my challenge
to you.”
DWP Operations Business Plan | 2013/14
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Our organisation
We will work across
organisational
boundaries to deliver
results and enhance
the customer journey
at every opportunity.”
We will deliver our business through
8 Directorates reporting to one
Operations Director General:
• Work Services
• Benefits
• Network Services
• Contracted Customer Services
• Pensions
• Universal Credit
• Operational Excellence
• Child Maintenance Group
Whilst each Directorate has their
own specific purpose to fulfil, they
also have a responsibility to work
across organisational boundaries to
ensure that together we continue to
enhance the customer experience
and provide a seamless service to
all our claimants and customers.
Driving cross-operational
engagement will be the One
Service networks (OSNs).
The OSNs, made up of
representatives from each of the
DWP operational Directorates, will
continue to have a vital role in
2013/14 to work ‘As One’ to tackle
cross-Operational issues and drive
customer service. OSNs will ensure
that the customer remains at the
centre of all our delivery by reviewing
the service offered within their
network and to understand root
causes of issues. They will drive real
and measurable improvements
which will not only benefit the
customer but help us work more
efficiently and reduce costs.
Collectively we must all put ourselves
in the position of our customers
and claimants, ensuring that we
recognise the impact on them of
everything we do regardless of
where we sit within the organisation.
This will enable us to tailor our
services to meet the needs of
individuals whilst fully implementing
the once in a lifetime reforms
which we have been tasked to do.
We have to undertake all of this in a
challenging financial environment.
We have an obligation to the tax
payer to deliver the most efficient
operation possible and to make the
most of all the money invested in us.
Ultimately we must all continue to
strive to deliver an extraordinary
service to all our customers
and claimants the first time
and every time, with each
of us taking responsibility for
making our services better.
DWP Operations Business Plan | 2013/14
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Our partners
Operations relies on a number of external partners to support the delivery of our core business. A large proportion of our expenditure funds
this external provision and therefore it is vital that we outline clear expectations and work closely with our suppliers to drive down costs whilst
improving outcomes. We will ensure that robust performance management achieves the very best outcomes at the very best costs.
In order to deliver our challenging agenda, Operations will also continue to work closely with, and be supported by, its internal partners.
Departmental and
Business Strategy
Directorate
• Provide Operations
with a voice to
ensure operational
perspective is
core to strategy
• Encouraging,
harnessing and
delivering ideas
for continuous
improvement
• Ensuring that all
proposed changes
are deliverable
HR Business Partners
• Work with Operations
as a strategic partner
to improve business
performance and
delivery by improving
capability, performance
and engagement
• Identify and
implement talent and
resourcing strategies
to deliver the right
people at the right
place at the right time
• Help plan and support
organisational and
cultural change
Finance and Commercial
Directorate
• Support Operations
by providing advice
and support to drive
business outcomes
that represent value
for money and to
live within budget
• Support Operations
to use management
information to
drive performance
improvements
Information Technology
Directorate
• Manage the demand
for IT services from
Operations into
IT and, working in
collaboration with
IT Directors, ensures
that IT performance
meets customer
expectations,
agreed service
levels and targets
DWP Operations Business Plan | 2013/14
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Performance Agreement 2013/14
.
We have started to
make good progress
on our priority of
putting our customers
and claimants at the
heart of what we do.”
Operations has an opportunity
to make a real difference to the
lives of many people. This year the
Performance Agreement has been
structured to more specifically
focus on the people that we serve.
Our Performance Agreement places
an emphasis on 5 priority outcomes:
Encouraging work and
making work pay
In 2013/14 we will:
• Deliver Universal Credit
Pathfinder and begin
national roll out
• Deliver Post-Work Programme
support to move long-term
unemployed claimants
back into work
• Deliver effective day to day
labour market policies
• Support every claimant
facing disadvantage to
move towards work
Enabling disabled people
to fulfil their potential and
have opportunities to plan
a full role in society
In 2013/14 we will:
• Implement Personal
Independence payments
• Provide financial support to cover
the additional costs of disability
• Deliver specialist employment
support to help disabled people
move into and stay in work
Providing a firm foundation and
promoting saving for retirement
In 2013/13 we will:
• Implement State Pension Reform
to introduce Single Tier Pension
• Deliver effective day to day
administration of State
Pension and Pension Credit
• Help people to make provision
for their retirement
Recognising the importance
of family in providing the
foundation of every child’s life
In 2013/14 we will:
Deliver a revised child
maintenance system
Deliver support for separated
and separating families to help
them work together in the best
interests of their children
Improving services to the public
by delivering value for money
and reducing fraud and error
In 2013/14 we will:
• Enhance our digital services and
aim to make on-line services our
customers’ channel of choice
• Deliver the Fraud and Error
Change Programme to reduce
the amount of benefit overpaid
Our Performance Agreement
is underpinned by a set of
measures based on planning
assumptions. These are available
on the next four pages
DWP Operations Business Plan | 2013/14
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Measures and Planning assumptions for 2013/14
Contact:
Measures
Planning Assumption 2013/14
Accessibility - Telephony
Percentage of Queued Calls Answered (PCA) (Working Age)
90%
Percentage of calls blocked (Working Age)
Not more than1%
Percentage of Queued Calls Answered (PCA) (Pensions/CAU)
93%
Percentage of calls blocked (Pensions/CAU)
Not more than1%
Percentage of Queued Disability Helpline Calls Answered
90%
Percentage of calls blocked (Disability Helpline)
Not more than 0.5%
Percentage of Queued UC calls answered
90%
Percentage of calls blocked (UC)
Not more than 1
Quality/resolution
First Call Resolution (working age)
80%
Quality of interventions (working age)
89%
Percentage of call-backs within one hour
98%
Percentage of call-backs within 3 hours
95%
Accessibility - Online
% Customers using JSA Online
80% by September 2013
% State Pension Online
30% by March 2014
UC - Volume and/or % of online claims
Under development
UC - Proportion of claims that drop out of the online process
Under development
DWP Visiting - Quality of forms completed to a processable standard
Under development
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Payment Gateway:
Measures
Planning Assumption 2013/14
Timeliness
JSA - %age cleared in 16 days
90%
ESA - %age cleared in 16 days
85%
IS - %age cleared in 13 days
90%
DLA (Adult) - %age cleared in 40 days (Q1 only)
78%
DLA (Child) - %age cleared in 40 days
79%
PIP - %age cleared in X days
Under development
PC - % outstanding over 41 days
Not more than 16%
AA - % outstanding over 48 days
Not more than 3.5%
CA - % outstanding over 45 days
Not more than 0.2%
Pensions Conversions - % outstanding over 15 days
Not more than 12%
ESA, PIP end-to-end clearance time
Further investigation required to confirm what time-band
and AACT information can be robustly obtained
Decision Making and Appeals - timeliness
Further investigation required to confirm what time-band
and AACT information can be robustly obtained
UC - %age ready for payment in X days
Under development
Accuracy*
Working age benefits - National Checking Team - % monetary value overpaid in processing
Working to develop measures similar to Pensions for JSA, ESA and IS
PC and SP - % monetary value overpaid in claims processing
PC 2.58% / SP 0.17%”
PIP - % monetary value overpaid in claims processing
Under development
AA, CA interim measure % claims processed accurately review in-year for alignment to monetary value
AA 94%CA 99% (Provisional pending MVE alignment discussions)
DLA
Under development
*MVE measures will be revisited in year, based on improved methodology and alignment across benefits where appropriate.
DWP Operations Business Plan | 2013/14
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Progress in the Labour Market:
Measures
Planning Assumption 2013/14
Off-benefit
Jobseeker’s Allowance off-flow rate (13, 26, 39 and 52 weeks)
52.5% 72.5% 82.5% 88.5%
Jobseekers off-flow rate (208 weeks)
99%
Employment Support Allowance off-flow rate(65 weeks)
52%
Income Support off-flow rate (52 weeks)
43%
Work Programme - Time off Benefit
Exceeding the AME Threshold within the year
Percentage of Jobseeker’s Allowance off-flows into employment
No Planning Assumption
Percentage of Employment Support Allowance off-flows into employment
No Planning Assumption
Real Time Earnings measure
UC measure to be developed
Work Programme - Job Outcomes
Greater than minimum performance level
Work Choice - Job Outcomes
55% supported job outcomes
30% unsupported job outcomes
ESF for families with multiple problems
Under development
Controlling Costs:
Measures
Planning Assumption 2013/14
FIS
FIS Value for Money Measure (total overpayments/total costs)
4.98
Customer Compliance
Customer Compliance Productivity measure
Average annual figure of 65 interviews per CCO per month.
Performance expected to increase throughout year and be
reported against monthly profile
Customer Compliance MVA
£11.6m
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Child Maintenance Group:
Measures
Planning Assumption 2013/14
Child Maintenance
Children Benefiting from 1993/2003 statutory schemes
830,000
Children Benefiting from Family Based Assessments (following contact with options)
Under development
Collections and arrangements 1993/2003 statutory scheme
£1,190 million
Cases contributing towards Liability 1993/2003 Schemes
83%
CMG Cost per £ collected
Under development
CMG Cost per child benefiting
Under development
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Our resources 2013/14
Department Expenditure Limits (DEL) Allocation 2013/14
£1,400.0m
£1,200.0m
£1,000.0m
£800.0m
£600.0m
£400.0m
£200.0m
£0.0m
Work
Services
n Staff costs
n Non-staff costs
Benefits
Network
Services
Contracted
Customer
Services
Operational
Excellence
Pensions
Child
Maintenance
Group
DG Support/
other costs
NB: Universal Credit allocations and staffing
data not available at time of publication.
DWP Operations Business Plan | 2013/14
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DEL Allocation 2013/14
Full Time Equivalent (FTE) staffing @ 31/03/14
Total = £4,779.8m
Total = 75,255
n
n
n
n
n
n
n
n
n
Work Services
Benefits
Network Services
Contracted Customer Services
Operational Excellence
Pensions
Child Maintenance Group
DG Support/other costs
Universal Credit
£1,249.9m
£721.3m
£154.6m
£1,374.2m
£827.9m
£149.5m
£244.3m
£58.1m
£0m
n
n
n
n
n
n
n
n
n
Work Services
Benefits
Network Services
Contracted Customer Services
Operational Excellence
Pensions
Child Maintenance Group
DG Support
Universal Credit
NB: Figures subject to rounding and Universal Credit allocations and staffing data not available at time of publication.
33,491
17,126
5,686
408
5,480
6,022
7,035
7
0