Department outlines further details of the objectives, costs, and savings of the ongoing Service Modernisation Programme, which aims to transform the delivery of key services accessed by 20 million citizens
The Department for Work and Pensions has revealed details of a £200m-plus project intended to modernise 10 major citizen services, including the State Pension.
The Service Modernisation Programme (SMP) hopes to “transform the services that the Department provides to around 20 million customers”, according to the details of a formal project assessment newly published on GOV.UK.
The review reveals that the scheme, which forms part of the Government Major Projects Portfolio, is comprised of three layers, the first of which is focused on the “modernisation of 10 different product areas”.
PublicTechnology understands that this includes a variety of areas outside of Universal Credit, encompassing pensions, as well as work- and disability-related benefits.
The 10 services are State Pension; Pension Credit; Carer’s Allowance; Attendance Allowance; Cold Weather Payments; Child Maintenance Service; Access to Work; Maternity Allowance; Disability Living Allowance for Children; and Disputes.
PublicTechnology last week exclusively revealed details of £5m being spent on work to digitise the manual processes parents are currently required to follow in claiming Maternity Allowance.
To support the transformation of these service areas, the second layer of the project will include “introducing cross-cutting capabilities to improve service and manage demand across DWP”.
The final element, meanwhile, will be dedicated to the “development of a new service design, creating a [department-wide] delivery model for the future – outside of Universal Credit”.
The accounting officer assessment, which is undersigned by DWP permanent secretary Peter Schofield, describes the modernisation scheme as “crucial to DWP’s improvement ambitions and a key enabler to the Department achieving its four strategic outcomes and business strategy ambitions”.
“The programme will do this by delivering digital services with a human touch, through joined-up services that are designed around customers and with services that do not stand still,” the assessment added. “In achieving these aims SMP, will bring about a step change in customer experience, colleague capabilities and service efficiency by providing: modern services which are more accessible and responsive to customer’s needs, with higher quality, joined-up and more efficient service delivery staff with the skills and support they need and improving the technology underpinning departmental services an organisation with the culture and tools to modernise continually from now on.”
The review adds that the project will require funding of £156m during the current spending-review period – which ends in March 2025. With departmental budgets for the years beyond that yet to be confirmed, the assessment notes that HM Treasury has approved spending so far “on the condition that spending beyond the current spending review period is at DWP’s own risk”.
Details of a one-year spending round will be announced alongside the autumn Budget this week, while a longer-term review will be concluded in spring 2025 – at which point “the frequency and timeline of future PBC (programme business case) reviews will be set out” for the SMP scheme, according to the assessment.
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The document adds that an initial iteration of the PBC was signed off by the Treasury in May 2023, while a refreshed version was given the green light this summer.
All the while, those delivering the project “should work with the IPA (Infrastructure and Projects Authority” and Cabinet Office Evaluation Task Force to develop a robust evaluation plan by March 2025”.
Based on the DWP’s current evaluations the modernisation initiative will provide a threefold return on programme costs – equating to a net benefit to the public purse of hundreds of millions of pounds over the coming decade.
“Our modernisation programme will save £647m by 2033 through driving improvements in customer service for our 20 million customers. This means savings of £2.03 for every £1 spent,” a departmental spokesperson said, in a statement sent to PublicTechnology. “The programme looks at how DWP customers access our services and how to improve this through new capabilities, including voice-led technology, and a digital offer allowing more customers to self-serve and reduce their need to contact DWP by telephone.”
Spending and saving
The rate and overall worth of the savings achieved suggests that the programme’s costs are in the region of £215m.
The project will start to deliver a net return during the 2025/26 year – by the end of which the department forecasts that the exchequer will have realised £31.9m in benefits. The remaining £600m-plus will come in over the seven years thereafter.
The net return was originally projected to add up to £2.30 for every £1 spent – but this was revised down by almost 12% to its current level.
“Whilst the programme’s savings have increased, costs have been extended beyond the initial investment period to avoid a cliff edge to the business case,” the assessment explains.
The review also saluted the implementation that has taken place so far, claiming that the “the programme has a good track record of successful delivery
“The successful delivery of the department’s transformation of services is inherently complex and risky with significant change being brought about to modernise service delivery,” the assessment adds. “It relies on numerous activities being completed on time, on cost and to the required scope and plan. The programme has made progress to date and is actively managing the challenges, dependencies, and cultural change. As new risks emerge mitigations will continue to be developed, implemented and reviewed for effectiveness.”
Regular accounting officer assessments are a requirement for all programmes in the government major projects portfolio. The reviews cover four aspects of project delivery – regularity, propriety, value for money, and feasibility – all of which were approved by Schofield for SMP.