Almost 700 DWP employees take voluntary redundancy but minister says hybrid work is enabling ‘retention of skills’

More than 8,000 staff affected by office closures have been offered more flexible working options

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Nearly 700 civil servants at the Department for Work and Pensions have accepted voluntary redundancy amid a wave of office closures, the department has revealed.

But minister for social mobility Mims Davies said that the use of hybrid working models is enabling the department to hold retain key skills.

Of the 8,400 staff who are affected by the closure of more than 40 of the DWP’s offices, around 685 have taken up redundancy packages so far, according to Davies.

The figures indicate that the majority of staff offered voluntary redundancy so far have taken it. Some 800 offers were made over the summer, after the office-closure programme was announced in March.

A further 430 officials are still at risk of redundancy, Davies said in a letter to parliament’s Work and Pensions Committee. The figures appear to align with a second round of voluntary redundancy offers announced in November.

Officials must be given the option to take redundancy payouts if there is no alternative office for them to move to within the maximum commuting distance set out in their contract. A total of 28 of the 41 offices closing have another suitable building in the vicinity, Davies said.

Around 80% of those affected by the move are set to move to an alternative DWP site near their original office – which Davies said includes some who have agreed to travel “outside their contracted mobility”. All of them have been offered hybrid working arrangements.

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“This is a strong indication that hybrid working supports DWP’s retention of skills and capability and offers flexible and more inclusive workplaces that can adapt to the needs of employees and our customers,” the minister said.

As of 15 November – the latest count – 5,200 staff had moved to an alternative DWP site, taking their jobs with them. A further 256 had taken up new posts elsewhere in DWP or in another government department. 

Campaigners have argued that the office closures, which were announced in March, will negatively impact services offered to people seeking benefits or other services.

MPs on the work and pensions committee have questioned plans to close Phoenix House, a jobcentre in Cumbria that is home to a team of staff specialising in benefits for people who have suffered on-the-job injuries such as those caused by exposure to asbestos.

The PCS union, meanwhile, has said the redundancies come at a time when DWP is struggling to recruit in areas that “are chronically under-resourced” such as personal independence payments, child maintenance, and retirement pensions.

In her letter, Davies said the changes will have “a significant impact on its people” but reiterated DWP’s assertion that “this is not about reducing headcount”.

The estates rationalisation programme will cut down on “surpass capacity”, she said – noting that while the department needs space for around 90,000 staff, its portfolio of buildings has space for 158,000.

She said moving out of less energy-efficient buildings would make DWP’s estate more sustainable and better to work in, and that consolidating some back-office functions into larger buildings would save money and be more effective.

The programme is set to save £3.5bn in gross savings over 30 years, saving between £80m and £90m per year from 2028-29 onwards, she said.

She added: “Redundancy will be a very last resort after all efforts to retain, retrain and redeploy colleagues, either within DWP, or other government departments in the area, have been exhausted.”


Sam Trendall

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