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During the past two years Jobcentre Plus has faced considerable upheaval in trying to accommodate both organisational change and meet the DWP target for efficiency savings (which requires the loss of 15,000 staff by March 20008). This report looks at how these changes have affected the ability of the Agency to meet its objectives in relation to: employment and training programmes; the capacity and role of Personal Advisors; the performance of the Customer Management System; the principles behind and the performance of Contact Centres. It concludes that too much was attempted too quickly, the planning and IT processes were not up to the job and service levels suffered. As a result Jobcentre Plus failed one of the tests of the Gershon programme that service quality should not deteriorate as a result of the efficiency process.
Between 2002 and 2008 the Department for Work and Pension replaced over 1,500 jobcentres and social security offices across Great Britain with a network of just over 800 modernised Jobcentre Plus offices. The aim was to improve significantly the job-seeking experience and the delivery of benefits by providing a service similar to that offered by a bank or modern retailer. To achieve such a radical shift the Department merged the Employment Service and the Benefits Agency into a new integrated service Jobcentre Plus. This roll-out was one of the largest public sector construction programmes undertaken in the UK in recent years. Having learnt lessons from early difficulties, the project was successful in delivering nearly all the planned offices, while making savings against the original budget of £2.2 billion. The estate rationalisation generated savings of £135 million a year, and the Department estimates that the roll-out will ultimately lead to cumulative benefits of £6 billion. The successful delivery of the programme can be attributed to sound governance, intelligent use of existing guidance and external advice, strong support from the leadership of the organisation and, critically, the consistent senior management team. The successful implementation of the project has important lessons for other major government programmes.