Another day. Another taxpayer disaster for the Conservatives. This time it is the National Audit Office reporting on the full cost of Michael Gove’s failed vocational education initiative which cost taxpayers £800m and left a trail of brand new closed colleges. Read the horrendous details of this latest scandal on Byline Times here.
Very informative report from the National Audit Office out today on the state of fracking and how it is being held back by unprecedented numbers of protestors and objectors. Read the story here.
I have a full story on Byline Times here.
As a taster:
Parliament’s financial watchdog announced the “super investigation” a week after Parliament rose. It now includes the extra £2 billion Johnson earmarked this month for “turbo charging” the No deal process.
It follows a total of 24 reports by the NAO on Brexit since 2016 which highlighted scandals and public waste. This included the exposure of former transport secretary Chris Grayling’s mishandling of No Deal Brexit freight contracts which cost the country over £50m including paying Eurotunnel £33m in an out of court settlement.
The Revenue and Customs agency has sacrificed the monitoring of fraud and error in paying out £22.9 billion a year in tax credits to millions of people so it can meet deadlines for Brexit.
The switching of 270 civil servants to prepare for Brexit from checking error and fraud among people claiming tax credits has cost Revenue and Customs up to £1.46 billion in overpayments, the National Audit Office has revealed.
The losses are the highest since 2011 and has led to the NAO qualifying the accounts of Revenue and Customs as inaccurate for the 15th year running since former Labour chancellor Gordon Brown first introduced tax credits in 2003.
The losses come on top of figures from the Department for Work and Pensions which disclosed that in the last financial year benefit error and fraud is running at record levels. Altogether the level of known error and fraud in both departments has now been revealed to total a record £7.5 billion.
The full report is on Byline Times here.
Benefit error and fraud has reached record levels at the Department for Work and Pensions and it is going to get worse, according to its own figures released in its annual report for the last financial year.
For the 30th year running the National Audit Office has qualified the ministry’s £86.6 billion benefit accounts because it considers them to be inaccurate
The most damning section of the report is on Universal Credit – whose current and previous directors – have just received bonus payments up to £15,000 each for their work.
The full story is on byline here.
CROSS POSTED IN BYLINE.COM
The billion pound plus failure of the implementation of Universal Credit is rightly condemned by the National Audit Office in a report published today.
Aimed to save money, get everybody back to work, simplify a complex benefit system and to be easily implemented. Instead it is going to cost more, is years behind schedule, discriminates against disabled and poorly educated people, and the government has plans to force the elderly not entitled to a pension to have to use it when it changes entitlement to pension credit ( see my earlier blog here)
But it is also having appalling consequences for food banks, landlords, council and housing association tenants – as the example in Amber Rudd’s constituency ( details down below show).
In the meantime ministers today were patting themselves on the back today how successful it is while senior civil servants behind it were awarded bonuses worth up to £20,000 each for its botched introduction ( see an earlier blog here and an article in the Sunday Mirror).
The statistics are appalling. According to the NAO :
“In 2017, around one quarter (113,000) of new claims were not paid in full on time. Late payments were delayed on average by four weeks, but from January to October 2017, 40% of those affected by late payments waited in total around 11 weeks or more, and 20% waited almost five months. Despite improvements in payment timeliness, in March 2018 21% of new claimants did not receive their full entitlement on time with 13% receiving no payment on time.
The Department does not anticipate payment timeliness to improve significantly in 2018. On this basis, the NAO estimates that between 270,000 and 338,000 new claimants will not be paid in full at the end of their first assessment period throughout 2018. Those with more complex cases are more likely to be paid late.
The Department expected most claimants would have enough money to cope over the initial waiting period after their claim is submitted (previously six weeks, now five). In reality, nearly 60% of new claimants (around 56,000 a month) receive a Universal Credit advance to help them manage before receiving their first payment.But they have to pay it back which means deducting an average £43 a month from their benefit.
But while the statistics are bad, the examples are worse.
Appendix 5 of the report reveals In Amber Rudd’s Hastings constituency for example, according to the NAO Hastings foodbank has increased its opening hours, needs around two tonnes of stock each week to meet demand, and is considering building more storage space, costing £200,000.”
Hastings Citizens Advice pays staff to deliver Universal Support delivered locally. It therefore needs to pay providers regardless of the number of people
that are referred for support. But its income from the Department is not guaranteed so it can’t plan
Hastings Citizens Advice is considering scaling back on what it does in order to cope with increased demand.
Similarly NHS Hastings and Rother Clinical Commissioning Group funds its local advisory services. But this takes time to identify and secure. This hampers the ability of organisations to employ high-quality advocates because of the uncertainty of future funding.
.Hastings and Rother Credit Union no longer accepts Universal Credit claimant because of the complications in dealing with the new benefit and the long time waiting for people to be paid it.
Other areas have also got problems.Landlords are carrying extra debt – Croydon’s rent
collection rate has fallen from 92% to 58%, and its bad debt provision has doubled to £8 million.
Sedgemoor Council in County Durham reported an increasing unwillingness, even with social landlords, to take on low-income tenants or those claiming Universal Credit.
So the government has piled on misery upon misery for the claimants,. voluntary organisations, food banks, landlords, credit unions, local authorities and health services. Meanwhile ministers on excess of £100,000 a year go home to expensive houses, enjoy fine wines, expensive meals out and luxury holidays while boasting how they are helping the poor. Some sick joke. As Amyas Morse, head of the National Audit Office, said today:
“The Department has pushed ahead with Universal Credit in the face of a number of problems, but has shown a lack of regard in failing to understand the hardship faced by some claimants.
“The benefits that it set out to achieve through Universal Credit, such as increased employment and lower administration costs, are unlikely to be achieved, yet the Department has little realistic alternative but to continue with the programme and hopefully learn from past mistakes.”
CROSS POSTED ON BYLINE.COM
On Wednesday two very highly paid civil servants £185,000 a year Richard Heaton, Permanent Secretary, Ministry of Justice and £190,000 a year Michael Spurr, Chief Executive, HM Prison and Probation Service will appear before MPs to explain their latest botch up – the privatisation failure of parts of the probation service.
I hope MPs on the Commons Public Accounts Committee will not only be briefed by the excellent National Audit Office report and investigation into the failure of Community Rehabilitation Companies – the fancy name for profit making companies like Sodexo and Seetec.
They should also read the coruscating report by Dame Glenys Stacey HM Chief Inspector of Probation and Peter Clarke HM Chief Inspector of Prisons last June on the performance of these companies and their failure to either help ex offenders go straight or protect the public from child abusers and perpetrators of domestic violence.
This sorry tale goes back to 2015 when Chris Grayling ( he of the current Virgin rail privatisation botch ups) was Justice Secretary and thought it a brilliant idea to privatise swathes of the probation service for prisoners serving 12 months or more who were at low risk of self harm.
From the very beginning they bungled it. They planned to give the 21 companies £3.7 billion until 2022 to handle and help large numbers of prisoners. The companies planned for this but Whitehall had overestimated the number of low risk ex offenders leaving prison and underestimated the number of high risk ex offenders who are still being helped by the publicly run probation service. As a result the companies would only get £2.1 billion.
So of course now the companies are in deep trouble facing losses of £443m by 2022. So what do these top civil servants do. They give them more of your cash to help them with their profit margins.
They have had a £42m bail out for dealing with fewer offenders in 2016 and another £22m to keep the companies going while the ministry kindly re-negotiates their contracts to deal with fewer ex prisoners.
It has now agreed to pay another £278m up to 2022 but has changed the terms of contract so the private firms will get even less money if any of the released prisoners re-offend.
Now if you read the inspectors’ report on the performance of these companies, this is a sick joke. The inspectors think their provision is so bad and useless that they might as well not exist.
They said: “Clearly there is more time for resettlement work with these prisoners, but CRCs are making little difference to their prospects on release. We found them no better served than their more transient fellow prisoners were some eight months ago. The overall picture was bleak. If Through the Gate services were removed tomorrow, in our view the impact on the resettlement of prisoners would be negligible. ”
But not only are they useless but they could be a menace to society. They were so bad at rehabilitating prisoners – they spent their time sitting at desks writing up reports on the computers – rather than helping them face to face. Some prisoners left to become homeless with little chance of getting a job.
But more seriously they let out child abusers, violent individuals who had beaten up their partners and drug addicts putting their victims at risk by having no proper supervision or rehabilitation plans.
In my view this £300m would be better spent funding refuges for victims of domestic violence ( in desperate short supply) or linking it back to the publicly run service.
You are paying for these companies to prey on the taxpayer without delivering any decent result and also allow released criminals to prey on their victims by their failure to rehabilitate them. No doubt the two highly paid civil servants will distance themselves from their failed policy when they appear before MPs on Wednesday