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There was a report in October 2006 (HC 1631 2005-06) which looked at the problems in administering the 2005 single payments scheme in England. This report follows up by examining the progress made in resolving outstanding problems from 2005 and processing 2006 payments. It concludes that the new management team has instilled a clearer sense of direction and virtually all the outstanding 2005 payments were made by the end of December 2006. However the Agency has identified 34,499 cases where there might be errors in the original calculations and the review of most of these cases will be completed by the end of 2007. In the interim errors in payments in the first year were likely to have been repeated in the second year and the Agency was not able to administer the 2006 single payments scheme in a fully cost-effective manner.
The Single Payment Scheme replaced previous European Union production-based agricultural subsidy schemes from 2005. The Department for Environment, Food and Rural Affairs, through the Rural Payments Agency, had chosen to implement the most complex option for reform in the shortest possible timescale, and the Agency had badly underestimated the scale of the task. This led to delays in making payments to farmers, erroneous payments and additional project and administrative costs, as reported in the Committee's earlier report (55th report session 2006-07, HC 893, ISBN 9780215036179). The Agency has estimated that there were £20 million of overpayments for the 2005 Scheme, and £17.4 million for the 2006 Scheme. The Agency has taken little action to recover the identified overpayments, with the risk that farmers may have unknowingly spent the money in the interim. Of 19 overpayments in excess of £50,000 paid in August 2006, the Agency had started the recovery process with only two of the farmers affected. Major changes made to the Agency's IT systems have enabled most farmers to receive payments earlier under the 2006 Scheme than for the 2005 Scheme. There has been a substantial impact on the costs of the business change programme to improve the Agency's efficiency, and the total project cost is now likely to exceed £300 million. In mid 2007, staff numbers in the Agency peaked at 4,600 and are not expected to reduce to 3,500 until 2010. The Agency is still not able to offer adequate advice to farmers on the progress of their claim. It was reluctant to specify targets by when such information would be available and when payments would be made under the 2008 Scheme.
With unrivalled political savvy and a keen sense of irony, distinguished political scientists Anthony King and Ivor Crewe open our eyes to the worst government horror stories and explain why the British political system is quite so prone to appalling mistakes.
This is the third report in 3 years on the subject of administration in England of the £1.6 billion Single Payment Scheme by the Rural Payments Agency and the Department for Environment, Food and Rural Affairs (HCP 98, session 2009-10, ISBN 9780215542588), and follows an NAO report (HCP 880, session 2008-09, ISBN 9780102963182). The Committee states that oversight of the Single Payment Scheme is a singular example of comprehensively poor administration on a grand scale. With a paucity of good management information in the Agency and the complacent oversight by the Department having acted to obscure the true situation. A focus over the last two and a half years in bringing forward payments to farmers has enabled the Agency to bring its deadline forward by nearly seven weeks, but this is still six weeks off the deadline it had planned and a long way short of the standards set in Wales, Scotland and Northern Ireland. Also there has been a negligible attention to the protection of tax payers' interests. The Rural Payments Agency has spent £350 million on a cumbersome IT system that can only be supported at huge cost and which is increasingly at risk of becoming obsolete, with the data held in the system remaining riddled with errors and efforts to recover overpayments having been slow, disorganised and haphazard. The Committee identifies poor leadership within the Agency and a lack of attention by the Department. Each claim costs over six times more to process in England than in Scotland. Further the Department was not able to demonstrate an adequate grasp of the costs of administering the scheme. The Committee states that responsibility rests with the Accounting Officers to resolve this misadministration.
Since their introduction under the Criminal Justice Act 2003, community orders have offered courts the ability to impose a range of 12 possible 'requirements', including accredited programmes (such as anger management courses or alcohol and drug rehabilitation), unpaid work in the community and supervision by the National Probation Service. There is little information available nationally on the effectiveness of community orders. On the key measure of reconviction, figures from the Ministry of Justice showed that for those sentenced to community orders, their actual reconviction rate was significantly lower than those sentenced to custodial sentences for similar offences. There is, though, no basic information such as national data on whether offenders have completed their community orders, nor on why offenders have failed to complete them. The National Probation Service has set national standards but these are applied inconsistently. The Ministry's current method of funding Probation Areas is unsatisfactory and slow to respond to changes in demand from the courts and it is felt that there is a need for a more flexible system. On the basis of a report by the Comptroller and Auditor General, the Committee examined the Ministry of Justice on increasing effectiveness of community orders; building the confidence of both the court and the community in community orders; improving the funding formula; and tightening adherence to the requirements of orders.
The 14-19 education reform programme aims to increase young people's participation in education and training beyond age 16 and raise their educational attainment. Central to the programme are new Diploma qualifications, being introduced between September 2008 and 2013, in 14 different occupational areas that offer a blend of academic and vocational learning. This report examines: giving all young people access to Diplomas; reducing complexity and communicating simply; and having the capability to deliver the reforms. The Department for Children, Schools and Families (the Department) has involved universities and employers in designing the Diplomas and developing their content. As new qualifications, there is still much work to be done to convince parents, employers and universities that Diplomas are a credible alternative to existing qualifications. To help make the qualifications more understandable, the Department and its partners need to demonstrate clearly how Diplomas will help young people progress into further learning and employment. By 2013, the Department is aiming for all young people in England to have access to all 14 Diplomas at three different skill levels. The Department has spent £590 million on the programme. It has not yet established cost estimates built up from the local level for delivering Diplomas, and has only just begun surveying local authorities to assess their capital requirements.
This report (HC 814, session 2007-08, ISBN 9780215525468) looks at the work of the British Council and what impact the Council has working with whole societies, how it makes best use of resources and their efforts to increase consistency across the British Council network. It follows an NAO report (HCP 625, session 2007-08, ISBN 9780102954173), on the same topic. The British Council is a Registered Charity and an executive Non-Departmental Public Body as well as a Public Corporation. It aims to build relationships between people in the UK and other countries, through teaching English and running cultural projects. It operates in over 110 countries and engages with over 15 million people a year worldwide. The Committee has set out a number of conclusions and recommendations, including: that the British Council should be congratulated for its achievements in promoting the English language and culture overseas; the Committee believes though that the current teaching model, based on premium prices and concentrated mainly in capital cities, severely restricts its reach; that the Council's recent programme of change has had a negative effect on staff and their view of the Council's leadership; the Council is without a single customer relationship management system, which it is now going to address; that sponsorship and partner income has fallen year on year since 2000-01, and the Council should do more to reverse this trend; the Committee has identified a lack of consistency across the network.
Benefit fraud is a crime and undermines public confidence in the benefits system. In 2006-07, the Department for Work and Pensions estimated that it spent some £154 million on tackling fraud, identifying £106 million of overpaid benefit, against total benefit expenditure of £120 billion. The Department estimates that fraud fell from £2 billion in 2001-02 to £800 million in 2006-07, which is 0.6% of benefit expenditure. But the Department must do more to reverse the rise in official and customer error. Estimated error rose from £1 billion in 2001-02 to £1.9 billion in 2006-07. Benefit complexity is believed to be a major cause of error. Increasing the volume of pre-payment checks and encouraging customers to receive benefit payments directly into their bank accounts has prevented some fraud. The Department now works closely with the police, the Serious Organised Crime Agency and local authorities to prevent, identify and act against fraud. But it could make more effective use of its powers and resources. While the Department successfully prosecutes 90 per cent of the cases it takes to court, the Prosecution Division has lost 17 per cent of its staff since 2003. Debt recovery is an essential part of tackling fraud, yet in 2006-07 the Department only recovered £22 million of fraud debt out of a known fraud debt stock of £339 million. The Department has been slow to improve its management information systems, hampering its ability to measure the cost-effectiveness of counter-fraud activities. It has taken from 2003 until February 2008 to roll out a new national management information system, known as FRAIMS, at a cost of £65 million.
This report considers the case for Parliament to be able to initiate and conduct inquiries into serious and significant matters of public concern. It takes up the recommendationmade by this committiee's predecessor Committee (in the Government by Inquiry Report) that there should be a parliamentary mechanism for initiating inquiries. These would take the form of Parliamentary Commissions of Inquiry, composed of parliamentarians and others. In the Report, the committee examines the justification for creating Parliamentary Commissions of Inquiry in particular, that they would enable Parliament to hold the Executive to account more effectively. Then it covers some of the practical issues involved in setting up inquiries of this nature: how Parliament could instigate an inquiry, its composition, and its operation and powers. The committee concludes that it is crucial, in constitutional sense, that Parliament has the necessary powers and abilities to scrutinise the Executive and hold it to account. Proper parliamentary scrutiny should include the ability to establish and undertake inquiries into significant matters of public concern. Parliament has, in the past, conducted investigationsof this kind and as the great forum of the nation, should be expected to do so. The committee's recommendation for Parliamentary Commissions of Inquiry would promoteeffective parliamentary accountability by creating a process for Parliament to initiate inquirieswhere it rather than the Executive sees fit.