DWP review of cost efficiencies considers outsourcing pensions delivery model

February 10, 2014 9:47 am

The Daily Mail has reported on a leaked DWP document which discusses the option of outsourcing the delivery of the state pensions service as part of possible measures to meet needed annual efficiency savings of £2 billion annually over the next two financial years. The review itself is reported to paint a rather apocalyptic picture of projected efficiency savings, given that it has already made substantial savings and “to deliver anything greater, they would need to look more fundamentally at how it delivers its business, and consider some more strategic shifts”.

Labour MP and Chair of the Work and Pensions Select Committee Dame Anne Begg reacted negatively to the proposals, pointing out that the pensions service is “one of the few success stories” at the DWP, and that around 93 per cent of pensioners were satisfied or very satisfied with the current model. For its part, the DWP said all Government Departments were undertaking efficiency reviews “and there were currently no plans to outsource the pensions service”.

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