Author Archives: ukcampaign4change

Judge in Post Office Horizon case calls for a “change of attitude”

By Tony Collins

The Law Society Gazette reports that the High Court judge in the Post Office Horizon case has called for a “change of attitude”.

At a case management conference, the judge Sir Peter Fraser listed some of the problems already reported during the group litigation:

  • Failure to lodge required documents with the court
  • Refusing to disclose obviously relevant documents
  • Threatening ‘pointless’ interlocutory skirmishes.
  • Failure to respond to directions for two months
  • Failure to even consider e-disclosure questionnaires

The case involves a class action – called a Group Litigation Order – against the Post Office brought by more than 500 mostly sub-postmasters.

Justice for Subpostmasters Alliance seeks damages related to the introduction of the Horizon computer system about  17 years ago, which is alleged to have caused financial distress and in some cases bankruptcy.

According to the Law Society Gazette, the judge said the behaviour of legal advisers in the case “simply does not begin to qualify as either cost-effective, efficient, or being in accordance with the over-riding objective”. He added,

“A fundamental change of attitude by the legal advisers involved in this group litigation is required. A failure to heed this warning will result in draconian costs orders.”

The court has heard of problems trying to establish a timetable for the litigation. The claimants sought a substantive hearing for October 2018, while the Post Office argued the case could be managed for another entire year without any substantive hearing being fixed. Under this proposal, the hearing would not happen until at least 2019.

Fraser noted that to describe this approach as ‘leisurely, dilatory and unacceptable in the modern judicial system would be a considerable understatement’.

The day after a trial was ordered for November 2018, the Post Office asked for a change because its leading counsel already had a commitment at the Companies Court.

The judge suggested it was a ‘clear case of the tail wagging the dog’ if clerks were allowed to dictate hearing date. He said there was reasonable notice to arrange for a replacement counsel.

Fraser added: ‘Fixing hearings in this group litigation around the diaries of busy counsel, rather than their fixing their diaries around this case, is in my judgment fundamentally the wrong approach.’

Comment:

It appears that the judge did not single out the claimants or the Post Office as the main target for his irritation. He was impartial. But his no-nonsense approach might have surprised some at the Post Office.

The Post Office is familiar with control. When the Horizon system has shown a shortfall in the accounts of a local branch, the Post Office has required the sub-postmasters to pay whatever amount is shown, in order to return the balance to zero.

Even when paying the shown amount has led to bankruptcy and destruction of the family life of the sub-postmaster, the Post Office has pursued the case.

It has had control.

It supplied the contract that sub-postmasters signed; it supplied the Horizon branch accounting system; it required payment of what the system showed as a deficit; it investigated complaints by sub-postmasters that the shown deficits might have been incorrect;  it was able to decide what information to release or withhold – the “known errors” Horizon log being one piece of information not disclosed – and it was the prosecuting authority.

It has also been free to rebut public criticisms, as when BBC’s Panorama and forensic accountants Second Sight focused on the concerns of sub-postmasters.

Now it’s a High Court judge who is questioning, among other things, a failure to lodge required documents with the court and refusing a to disclose obviously relevant documents.

The judge’s comments are refreshing. Since 2009, when Computer Weekly first reported on the concerns of sub-postmasters, control has been one-sided.

Now at last it is on an even keel.

We hope the Post Office will reappraise whether it should be using public funds at all to fight the case.

If the case does drag on for years – postponing a judicial decision – who will benefit? Certainly not the sub-postmasters.

Law Society Gazette article

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Has goodnewspeak gone too far when a mother whose allowance was blocked dies?

By Tony Collins

Yesterday’s post on goodnewspeak mentioned that officials at the Department for Work and Pensions had been celebrating the rollout of Universal Credit, not obviously mindful of the problems and delays in payments and the fact that some failed claimants had been on the brink of suicide.

Now Metro has reported that a 38 year-old mother of four who had mental health problems and an eating disorder died cold and alone after her benefits were cut because she was too ill to attend an Employment Support Allowance meeting.

Elaine Morrall was found dead in her home wearing a coat and scarf, her family said.  She’d had her benefits stopped because she failed to attend a meeting while in a hospital intensive care unit, they said.

Her family say wouldn’t put her heating on, because of the cost, until her children arrived home from school. The dead woman’s mother Linda Morrall blamed the Department of Work and Pensions for her death.

In an open letter on Facebook, Linda Morrall wrote: [My daughter] died on the afternoon of 2 November 2017 at home on her own … in the cold with her coat & scarf on…”

He daughter, she said, was in and out of intensive care but was “deemed not ill enough for ESA”. She had her benefits stopped numerous times, which in turn stopped her housing benefit. Being in intensive care was deemed insufficient reason for failing to attend a Universal Credit interview, said Linda Morrall.

“I went to the job centre to inform them that she couldn’t attend. But benefits stopped again.” Her daughter was due to go to court on Monday. “Is being dead now enough reason [not to attend court],” said Linda Morrall.  “How many people have got to die before this government realises they are killing vulnerable people?”

A spokesperson for the DWP told Metro, ‘Our thoughts are with Ms Morrall’s family at this difficult time. We understand that people can’t always attend appointments, which is why we will re-arrange alternative times.

“Assessment decisions are made with consideration of all the information provided, including supporting evidence from a GP or medical specialist.

“Anyone who disagrees with a decision can appeal.”

Metro article

Goodnewspeak and its Orwellian dark side

Goodnewspeak and its Orwellian dark side

By Tony Collins

Orwell made no mention of goodnewspeak. But maybe today it’s an increasingly popular descendant of  Newspeak – a language devised by Orwell to show how the State could use words and phrases to limit thought.

This week, as a statue of Orwell was unveiled outside the BBC, a local council in Sussex made an announcement that was a fine example of goodnewspeak.

This was Horsham District Council’s way of not saying that it was scrapping weekly rubbish collections.

This was the benign side of goodnewspeak. The dark side is a growing acceptance in Whitehall, local authorities and the wider public sector that nothing negative can be thought of let alone expressed at work.

This suppression of negative thoughts means that the rollout of Universal Credit can be said officially to be going well and can be speeded up  despite the clamour from outsiders, including a former Prime Minister (John Major), for a rethink to consider the problems and delays.

[Labour MP Frank Field said last month that the DWP was withholding bad news on Universal Credit.]

It means that the Department for Business, Energy and Industrial Strategy can continue to praise all aspects of its smart meters rollout while its officials keep silent on the fact that the obsolescent smart meters now being installed do not work properly when the householder switches supplier.

It means that council employees can think only good about their major IT suppliers – and trust them with the council’s finances as at Barnet council.

[Nobody at Barnet council has pointed out the potential for a conflict of interest in having outsourcing supplier Capita reporting on the council’s finances while having a financial interest in those finances. It took a local blogger Mr Reasonable to make the point.]

Goodnewspeak can also mean that public servants do their best, within the law, to avoid outside scrutiny that could otherwise lead to criticism, as at Lambeth council.

Last month Private Eye reported the results of a “People’s Audit” in which local residents asked questions and scrutinised the authority’s accounts. The audit found that:

 – The number of managers earning between £50,000 and £150,000 has increased by 88, at a cost of more than £5.5m year.
-Spending on Lambeth’s new town hall has gone from a projected £50m to £140m.
– The council “invested” a total of £57,000 on its public libraries last year – closing three of them – while spending £13m on corporate office accommodation.
-£10.3m was spent making people redundant.

These disclosures (and there are many more of them) raise the question of what Lambeth is doing to dispel the impression that it manages public money badly and that its decisions could be routine in the world of local authorities.

Lambeth council’s reaction to the audit was to denounce it and issue its own goodnewspeak statement; and it is considering a proposal to lobby the government to allow councils to ban such People’s Audits in future.

Lambeth’s website, incidentally, is entitled “Love Lambeth”. Which, perhaps, shows that its leaders have, at least, a deep sense of irony.

Whitehall

The following lists of announcements on the websites of the Department for Work and Pensions and the Department of Transport are examples of how goodnewspeak manifests itself in Whitehall:

And the Department of Transport’s website:

Ministry of Truth

Orwell wrote in Nineteen Eighty-Four of the Ministry of Truth whose expertise was lying, the Ministry of Peace which organised wars and the Ministry of Plenty which rationed food.

Some of the Party’s slogans were:

War is peace.
Freedom is slavery.
Ignorance is strength.

And Orwell, whose wife worked at the Ministry of Information at Senate House, London (Orwell’s model for the Ministry of Truth) said,

“If you want to keep a secret, you must also hide it from yourself.”

Comment

Of course goodnewspeak doesn’t exist as a policy anywhere. But its practice is all-pervasive in the public sector. And it seems to change the way people think when they’re at work.

It blocks out any view other than the official line.

In Nineteen Eight-four, Orwell created “Newspeak” as a language of the Party to coerce the public to shape their thoughts around the State’s beliefs. Its much-reduced vocabulary stopped people conceiving of any other point of view.

Not using Newspeak was a thoughtcrime. The Party advocated Duckspeak – to speak without thinking – literally quack like a duck.

Has this already happened in a minor way at Barnet? A council document on the benefits of its outsourcing policies was peppered with abstractions that could have been constructed by software-driven random-phrase generators:

“Ahead of the game”
“Top to bottom organisational restructure”
“Flexibility to meet future challenges whilst ensuring we provide excellent services to residents today.”
“Root of our success”
“New solutions to complex problems”
“Pioneering partnerships”
“Investing for the future”
“Protect what makes Barnet such a great place to live”
“Increasing resident satisfaction”
“Paying dividends”
“Prepared for the future”
“Great strides”
“A radical, ‘whole place’ approach to designing and providing services”
“We have not been backwards in coming forwards”
“Pursuing alternatives to the norm”
“Vision into reality”
“Frame our future strategic direction”
“Future Shape”
“Drivers for change”
“Genuine innovation in Local Government”
“Bold in its decision making”
“Forward looking change strategy”
“A new relationship with citizens”
“A one public sector approach”
“A relentless drive for efficiency”
“Focus on stimulating the market”
“Best in class’ range of tradable services to win and deliver work for other authorities.”
‘Form follows function’.
“Clear roles and responsibilities”
“An internal escalation model”
“Renewed focus on improving engagement”
“Increasing transparency, and developing trust”
“Connect with people and build relationships of trust”
“A steep demand line to climb”

Dark side

One worrying consequence is that Whitehall civil servants and public servants and ruling councillors at, say Barnet and Somerset councils (and even at Cornwall), made the assumption that their IT suppliers shared the public sector’s goodnewspeak philosophy.

But suppliers are commercially savvy. They don’t exist purely to serve the public. They have to make a profit or they risk insolvency.

For years, goodnewspeak at Somerset County Council led to officers and councillors regularly praising the successes of a joint venture with IBM while covering up the problems and losses, in part by routine refusals of FOI requests.

Goodnewspeak at Liverpool Council meant that its officials had nothing but praise for BT when they ended a joint venture in 2015. They said that ending the joint venture would save £30m. But the joint venture itself was supposed to have saved tens of millions.

Somerset County Council made a similar good news announcement when it terminated its joint venture Southwest One with IBM.

Such announcements are consistent with Newspeak’s “Doublethink” – the act of simultaneously accepting two mutually contradictory beliefs as correct.

DWP

Outsiders can find goodnewspeak shocking. The Daily Mirror reported on how the DWP celebrated the rollout of Universal Credit at Hove, Sussex, with a cake. Were managers mindful of the fact that some failed UC claimants have been driven to the brink of suicide?

Disillusioned

Francis Maude, when minister for the Cabinet Office, was almost universally disliked in the civil service. He was an outsider who did not accept the Whitehall culture.  Even though he believed the UK had the best civil service in the world, he did not always show it.

He tried to reduce Whitehall spending on IT projects and programmes that could not be justified. He spoke an IT supplier oligopoly.

Now he has left government, most of his civil service reforms (apart from the Government Digital Service) have settled back to how they were before he arrived in 2010.

In a speech last month, Maude spoke of a “distressing” disillusionment with the civil service culture. He said:

“Based on my experience as a Minister in the eighties and early nineties my expectations (of the civil service) were high. And the disillusionment was steep and distressing.

“It remains my view that we have some of the  very best civil servants in the world … But the Civil Service as an institution is deeply flawed, and in urgent need of radical reform.

” And it is civil servants themselves, especially the younger ones, who are most frustrated by the Service and its culture and practices.”

World’s best civil service

He added that, as the new minister responsible for the civil service, every draft speech or article presented to him started: ‘The British Civil Service is the best in the world.’

But complaints by ministers in all parties about the lack of institutional capability, inefficiency and failed implementation were legion, he said.

“When we queried the evidential basis for this assertion, it turned out that the only relevant assessment was a World Bank ranking for ‘government effectiveness’, in which the UK ranked number 16.”

Speaking the unsaid

Perhaps more than any former minister, Maude has expertly summarised the civil service culture but in a way that suggests it’s unredeemable.

“I and others have observed that all too often the first reaction of the Civil Service when something wrong is discovered is either to cover it up or to find a scapegoat, often someone who is not a career civil servant and who is considered dispensable.
“There seems to be an absolute determination to avoid any evidence that the permanent Civil Service is capable of failure.
“Another indicator is that if a Minister decides that a Civil Service leader is not equipped for his or her task, this has to be dressed up as “a breakdown in the relationship”, with the unspoken suggestion that this is at least as much the fault of the Minister as of the civil servant.
“It can never be admitted that the mandarin was inadequate in any way.
“When I suggested that there might be room for improvement, the distinguished former Civil Service Head, Lord Butler, accused me of a failure of leadership. Actually the leadership failure is to pretend that all is well when no one, even civil servants themselves, really believes that.

The good news

All is not lost – thanks to a vibrant and investigative local press in some areas and resident auditors such as Mr Reasonable, Mrs Angry, David Orr, Andrew Rowson and the people’s auditors in Lambeth.

Along with the National Audit Office and some MPs, these resident auditors are the only effective check on goodnewspeak. They are reminder to complacent officialdom that it cannot always hide behind its barrier of unaccountability.

Long may these dogged protectors of the public interest continue to highlight financial mismanagement, excess and self-indulgent,wasteful decisions.

Earlier this year Nineteen Eight-Four hit the No 1 spot in Amazon’s book sales chart.

Perhaps copies were being scooped up by shortlisted candidates for top public sector jobs as vital homework before falling in with the culture at their interviews.

**

Outside the BBC, Orwell’s new statute is inscribed with a quotation from a proposed preface to Animal Farm that was never used:

“If liberty means anything at all, it means the right to tell people what they do not want to hear.”

Thank you for David Orr, one of the dogged local resident auditors referred to above, for drawing my attention to some of the articles mentioned in this post.

DWP good news announcements

Newspeak

Whitewashing history in education

 

Capita under fire again over GP support contract – but NHS England praises “improvements”

By Tony Collins

Hundreds of trainee GPs have not received their salaries from Capita, which is under contract to pay them, reports The Guardian.

Some of the trainees have applied for emergency funds from The Cameron Fund, a charity for the prevention of hardship among GPs and their dependents.

Capita administers training grants for GPs under its wide-ranging £1bn contract with NHS England to provide primary care services.

In November 2016 the then Health minister Nicola Blackwood described failings on Capita’s GP support contract as “entirely unacceptable”. 

She said Capita had inadequately prepared for delivering a “complex transition”.

In response,  Capita said it adding the full-time equivalent of 500 extra staff on the contract.

But in February 2017, after continuing complaints,  the Health Secretary Jeremy Hunt said he would be prepared to end Capita’s contract if necessary.

Since then, though, NHS England has praised “improvements” in the contract, according to Pulse.

Yesterday The Guardian reported extracts from a letter the British Medical Association sent to NHS England on 30 October 2017.

It said some GP practices were “having to pay trainees out of already overstretched practice budgets, or trainees are going months without being paid if the practice cannot cover the shortfall”.

Capita confirmed it had outstanding payments to some trainee GPs but was unable to say how many it is responsible for paying, or how many it has not paid.

It said that it had not received all the information it needed to pay salaries from the relevant employers. A Capita spokesperson told The Guardian that the problems were an inevitable part of “a major transformation project to modernise a localised and unstandardised service”.

It added: “We have made significant investment to deliver improvements and these have been recognised by NHS England and demonstrated through improved service performance and improved customer satisfaction.”

The Cameron Fund’s treasurer Dr David Wrigley described the outsourcing of GP support services as a “botched privatisation”.

“NHS England has commissioned out what was a very efficient service run within the NHS, and now Capita runs this contract in what I’d call another botched privatisation.”

One trainee GP went unpaid two consecutive months.  At the end of October she posted on a private message board for GPs: “Anyone know of how I access hardship funds (quickly) to feed children/pay nursery/mortgage (quickly)?”

Her surgery gave her a loan last month to tide her over but did not have enough surplus funds to do the same thing again.

She said that in the last 24 hours partners have stepped forward and have all taken a pay cut to provide a loan “to get me through the month as they were worried about my family”.

An NHS England spokesperson said it was “holding Capita’s feet to the fire on needed improvements”.

It added: “In the meantime, the lead employer for Health Education England or the GP practice are responsible for paying their GP trainee salaries and are subsequently reimbursed for this. Backlogs are being prioritised by Capita.”

The BMA’s letter to the NHS chief executive Simon Stevens criticises Capita.

“We are disappointed at the lack of progress that has been made … These issues have been ongoing since NHS England commissioned Capita … and it is unacceptable that more progress has not been made to getting these resolved …

Wrigley wants the House of Commons’ public accounts committee to investigate the contract.

“NHS England have known about this for a while and the BMA has been putting constant pressure on, and it’s all promises that it’ll get better but it doesn’t.”

New systems for cervical screening and GP payments and pensions that are also contracted out to Capita are due to go live next July. The BMA has told NHS England that it has “no confidence” in Capita’s ability to deliver the services.

Comment

It’s possible to have some sympathy for Capita which has the daunting task of trying to standardize a wide range of systems for supporting disparate GP support services.

But, as Campiagn4Change has reported many times on Barnet Council’s Capita outsourcing contract, it can be difficult if not impossible to make huge savings in the cost of running services (£40m in the case of the GP support contract), deliver an IT-based transformation based on new investment and provide a healthy profit for the supplier’s shareholders while at the same time making internal efficiency savings.

Capita’s share price is relatively low and under continuing pressure but is holding up reasonably well given the company’s varied problems.

Still, we wonder whether the company can afford to put large sums into sorting out problems on the GP support contract, at Barnet Council and on other well-publicised contracts?

The MoD has ended a Capita contract early, the company faces litigation from the Co-op and its staff are staging nine days of strikes over pensions.

Who’s to blame?

If anyone is to blame in this NHS saga it is NHS England for not fully understanding the scale and complexity of the challenges when it outsourced to Capita.

The first rule of outsourcing is: Don’t outsource a problem.

Doctors warned NHS England against signing the contract. Under financial pressure to do so – it needed the promised savings  – NHS England’s public servants signed the deal.

Those public servants will not be held accountable for their decision. In which case, what’s to stop public and civil servants making the wrong decisions time and again?

Two further questions:

Is NHS England too close to Capita to see the faults?

Do public servants have a vested interest in not criticising their outsourcing suppliers, in case opprobrium falls on both parties? 

Thank you to Zara Pradyer for drawing my attention to the Guardian article.

Hundreds of trainee GPs facing hardship as outsourcing firm Capita fails to pay – The Guardian.

 

A proposed Bill and charter that could change the face of Whitehall IT and save billions

By Tony Collins

A government-commissioned review yesterday backed a Bill that could, if enacted and applied to Whitehall generally, prevent billions of pounds being lost on wasteful projects.

The Public Authority Accountability Bill – known informally as the Hillsborough Law – would establish an offence of intentionally or recklessly misleading the public, media or court proceedings.

It would also impose a legal requirement on public authorities to act with candour, transparency and frankness when things go wrong.

Although the Bill was a reaction, in part, to the cover up by public authorities of their failings in the light of Hillsborough, it could, if enacted, deter public authorities from covering up failings generally – including on major IT programmes.

For decades public authorities have had the freedom – unrestricted by any legislation – to cover up failures and issue misleading statements to the public, Parliament and the media.

In the IT sphere, early problems with the Universal Credit IT programme were kept secret and misleadingly positive statements issued. The National Audit Office later criticised a “good news” culture on the Universal Credit programme.

And still the DWP is fighting to block the disclosure of five project assessment reviews that were carried out on the Universal Credit IT programme between 2012 and 2015.

It could be argued that billions of pounds lost on the NPfIT – the National Programme for IT in the NHS – would have been avoided if the Department of Health had been open and candid at the start of the programme about the programme’s impractically ambitious aims, timescales and budgets.

The Department for Business, Energy and Industrial Strategy is currently keeping secret its progress reports on the £111bn smart meters rollout – which independent experts have said is a failing programme.  The department routinely issues positive statements to the media on the robust state of the programme.

The Public Authority Accountability Bill was drafted by lawyers who had been involved with representing bereaved Hillsborough families. It is aimed mainly at government inquiries, court proceedings and investigations into lapses of public services.

But it would also enshrine into law a duty on public authorities, public servants, officials and others to act within their powers with “transparency, candour and frankness”.

Lawyers who drafted the Bill refer on their website to “institutional defensiveness and a culture of denial” when things go wrong. They say,

“In 2017 we expect public authorities and individuals acting as public servants to be truthful and act with candour. Unfortunately, repeated examples have shown us that this is not generally the case.

“Instead of acting in the public interest by telling the truth, public authorities have tended to according to narrow organisational and individual motives by trying to cover up faults and deny responsibility …”

Backing for the Bill came yesterday from a 117-page report on the Hillsborough disaster by Bishop James Jones. The government commissioned him to produce a report on the experiences of the Hillsborough families so that their “perspective is not lost”.

Jones’ impressive report refers to institutions that “closed ranks, refused to disclose information, used public money to defend its interests and acted in a way that was both intimidating and oppressive”

His report refers to public bodies in general when it points to a “cultural condition” and “mindset” that features an “instinctive prioritisation of the reputation of an organisation over the citizen’s right to expect people to be held to account for their actions”. This, says the report, “represents a barrier to real accountability”.

It adds,

“As a cultural condition, this mindset is not automatically changed, still less dislodged, by changes in policies or processes. What is needed is a change in attitude, culture, heart and mind.”

The report urges leaders of “all public bodies” to make a commitment to cultural change by publicly signing a new charter.

The charter commits public bodies to:

  •  Place the public interest above its own reputation.
  • Approach forms of scrutiny with candour, in an open, honest and transparent way, making full disclosure of relevant documents, material and facts.
  • Learn from the findings of external scrutiny and from past mistakes.
  • Avoid seeking to defend the indefensible or to dismiss or disparage those who may have suffered where the organisation has fallen short.
  • When falling short, apologise straightforwardly and genuinely.
  • Not knowingly mislead the public or the media.

The report says that institutional defensiveness and a culture of denial are “endemic amongst public institutions as has been demonstrated not only by the Hillsborough cover up but countless other examples.”

Stuart Hamilton, son of Roy Hamilton who died at Hillsborough, is quoted in the report as saying,

“Police, officials and civil servants should have a duty of revealing the full facts and not merely selecting some truths to reveal but not others. Not lying or not misleading is simply not good enough. Without this, future disasters cannot be averted and appropriate policies and procedures cannot be developed to protect society.

“Such selective revealing of information also results in the delay of justice to the point where it cannot be served”.

He added,

“I believe that without a change not only in the law but also in the mindset of the public authorities (which a law can encourage) then very little exists to stop the post-event actions happening again.”

IT-enabled projects

Whitehall departments and the Infrastructure and Projects Authority publish their own narratives on the progress on major IT-enabled projects and programmes such as Universal Credit and smart meters.

But their source reports aren’t published.

Early disclosure of failings could have prevented hundreds of millions of pounds being lost on FireControl project, BBC’s Digital Media Initiative, the Home Office Raytheon e-borders and C-Nomis national offender management information projects and the Rural Payments Agency’s CAP delivery programme (which, alone, contributed to EU penalties of about £600m).

Comment:

Yesterday’s beautifully-crafted report into the Hillsborough disaster – entitled “The patronising disposition of unaccountable power” – is published on the Gov.uk website.

It has nothing to do with IT-enabled projects and programmes. But, in an unintentional way, it sums up a public sector culture that has afflicted nearly every Whitehall IT-based project failure in the last 25 years.

A culture of denial is not merely prevalent today; it is pervasive. All Whitehall departments keep quiet about reports on their failings. It is “normal” for departments to issue misleadingly positive statements to the media about progress on their programmes.

The statements are not lies. They deploy facts selectively, in a way that covers up failings. That’s the Whitehall culture. That’s what departments are expected to do.

According to Bishop Jones’ Hillsborough report, one senior policeman told bereaved families that he was not obliged to reveal the contents of his reports. He could bury them in his garden if he wished.

It’s the same with government departments. There is no legal duty to keep programme reports, still less any requirement to publish them.

If Bishop Jones’ charter is signed by leaders of public authorities including government departments, and Andy Burnham’s Bill becomes law,  the requirement for candour and transparency could mean that IT programme progress reports are made available routinely.

If this happened – a big if – senior public officials would have to think twice before risking billions of pounds on a scheme that held out the prospect of being fun to work on but which they knew had little chance of success within the proposed timescales, scope and budget.

It’s largely because of in-built secrecy that the impossibly impractical NPfIT was allowed to get underway. Billions of pounds was wasted.

Some may say that the last thing ministers and their permanent secretaries will want is the public, media and MPs being able to scrutinise what is really happening on, say, a new customs IT project to handle imports and exports after Brexit.

But the anger over the poor behaviour of public authorities after Hillsborough means that the Bill has an outside chance of eventually becoming law. Meanwhile public sector leaders could seriously consider signing Jones’ charter.

John Stuart Mill wrote in 1859 (On Liberty and The Subjection of Women) that the “only stimulus which can keep the ability of the [public] body itself up to a high standard is liability to the watchful criticism of equal ability outside the body”.

 

Horizon IT controversy closes another village post office and threatens the future of its owner

By Tony Collins              

It’s a familiar story.

A small businessman, this time in the village of Alveston, which is 10 miles north of Bristol, is being threatened with a life-changing debt because of a shortfall shown on the Post Office’s Horizon system.

The local post office has closed and its owner is being pursued for £41,000.

It’s happening against the backdrop of a High Court class action by 522 former owners of small post offices. The High Court has granted them a Group Litigation Order against the Post Office.

Many of the 522 have had to give the Post Office money they say they didn’t owe, because of deficits shown on Horizon. Some were jailed or made bankrupt. Many lost their livelihoods while being left with huge debts.

The Alveston case involved, initially, £36,000. The discrepancy came as a surprise to Hari Jayanthan, who ran the Alveston post office branch out of his shop.

The Gazette reported that the problems for Jayanthan began last December when the software he uses to balance the books showed a shortfall.

He asked the Post Office repeatedly for help but says he had no meaningful response and was left unsure what to do.

“I thought it had to be a mistake,” he said. “They said they would have a look and they kept saying they could not find anything.

“I was asking if I had done something wrong, pushed the wrong button or something, and if someone could come and help me, but nobody turned up for six months.”

In May 2017 officials from the Post Office arrived on his doorstep, telling him that they were now owed £41,000.

This was nearly three times what his village post office business made in a year.

“I keep getting letters and phone calls asking how I plan to repay them, and I don’t know what to do.

“This is the only business I have and I don’t have that kind of money to repay them. It’s all I have got. What can I do? We took no money from them and I could find no fault on my side.”

In a corporate move, the Post Office closed the Alveston branch in May, without notice to local villagers. It said the closure was for “operational reasons”.

Today, the Alveston post office and stores is shown on Google as  “permanently closed”.

Local parish councillors have expressed concern, particularly at the suddenness of the closure. For Alveston residents, the nearest post office is more than 1.5 miles away.

The Post Office said it does not comment on individual cases. It welcomes the High Court case as the “best opportunity for the matters in dispute to be heard and resolved”.

It added that it has confidence in the Horizon system which is “robust, reliable and used across 11,600 branches by postmasters, agents and their many thousands of staff, to process six million transactions successfully every day, including on behalf of the UK’s high street banks”.

High Court case

One of the most important parts of the preliminary hearings so far – perhaps the single most important exchange – has involved the Horizon system’s “known errors log”.  So far the log has remained confidential.

Justice for Subpostmasters Alliance, which is behind the class action being handled by Freeths solicitors, has asked for disclosure of the log.

TV reporter Nick Wallis, who has covered the Horizon controversy for many years, in particular for BBC’s The One Show, went to the High Court last month and tweeted on some of the exchanges.

The judge Sir Peter Fraser, who has practiced in the Technology and Construction Court from 1990, asked the Post Office to list reasons why the known errors log should not be disclosed.

The Post Office’s legal representative said that the demand for the log was a red herring. The Post Office has no control over it. It is controlled by Fujitsu which built Horizon and maintains it.

The legal representative for the Justice for Subpostmasters Alliance argued that the data in the log could be exported.

The judge said he wanted e-disclosure preliminaries to be sorted by 10 November. If there was still disagreement, a disclosure management hearing will be set up.

The judge also extended the cut-off date for new claims. Freeths is accepting new applications from any subpostmasters including assistants, managers, crown office employees and temporary subpostmasters until the end of 10 November 2017.

Another 70 or so are expected to join, bringing the total number of claimants to about 590.

Comment:

Nobody outside an inner circle of Post Office head office executives and their advisers believes that hundreds of owners of local post offices – who took pride in serving their local communities – decided to defraud the taxpayer.

It’s not even clear that the Post Office believes it. For it has not sought to establish that any of the subpostmasters involved in the High Court class action benefitted from a lavish lifestyle financed by (alleged) shortfalls shown on the Horizon system.

But still the Post Office’s corporate position against the subpostmasters seems immovable. Which raises the question of whether the Post Office is placing more importance on the integrity of a computer system than the integrity of hundreds of subpostmasters.

Forensic accountants Second Sight, whom the Post Office commissioned to investigate Horizon complaints, raised many concerns about the system. The Post Office terminated Second Sight’s contract.

Computer Weekly reports that Andy Clark, visiting professor in information security at Royal Holloway University of London and director at information security and expert witness company Primary Key Associates, was called as a witness for the defence in a case brought by the Post Office against a sub-postmaster.

After seeing the Post Office Horizon accounting system in action, he said it was quickly apparent there were questions to ask about its integrity. After asking the Post Office these questions, the Post Office dropped the case, he said.

Today the Post Office’s position in the class action is that subpostmasters have signed a contract that, in essence, made them responsible for shortfalls shown on the Horizon system.

But is it as simple as that?

Some of the questions that will be raised at next November’s High Court trial  include:

  • Did Post Office Limited owe to subpostmasters a duty of good faith, fair dealing, transparency, co-operation, trust and confidence?
  • Were legally binding terms implied in the contracts but not expressly stated? For example, what contractual obligations did Post Office Limited have in relation to investigating and determining the causes of alleged shortfalls.
  • Did contracts include unusual, onerous or unfair terms?
  • In what circumstances did subpostmasters have a liability to Post Office Limited for shortfalls and losses?
  • Did the contracts allow Post Office Limited to suspend or terminate in the manner in which they did.

Known errors

The Post Office refers repeatedly to the robustness of Horizon. It doesn’t accept that the system could have caused the losses in question.

This is one reason the known errors log is in contention. It could reveal that there were no known Horizon faults relevant to the shortfalls in question.

Or it could reveal the opposite.

What is extraordinary is that the log hasn’t been disclosed in years of legal cases against the subpostmasters.

This is a little like aircraft manufacturer Boeing implicating pilots in major incidents while not disclosing the plane’s fault history.

In the US, investigators have a statutory right to inspect the plane’s full fault history. Let us hope that the High Court requires Horizon’s full records to be produced.

One accused former subpostmistress Jo Hamilton has tweeted that “justice is coming”. We hope she’s right and that it comes long before the scheduled end of the High Court trials in March 2019.

For every day that passes without a settlement of the case is a day in which corporate hubris and irrationality prevails.

It’s to be expected that the Post Office’s directors will want to express confidence in a computer system on which their business depends.

But do they really believe it’s worth continuing to sacrifice small businesses and ruin the lives of their owners to repeatedly establish the integrity of a computer system?

Court dates set for trial – Computer Weekly

Nick Wallis High Court Horizon tweets

 

Did Gauke and Couling break free today of DWP “good news” stance on Universal Credit rollout?

By Tony Collins

Two leaders of the Universal Credit rollout, David Gauke and Neil Couling, faced MPs’ questioning this morning on problems with the rollout of Universal Credit.

They were asked, among other things, about excessive delays in payments and payments made on the basis of incorrect data.

Gauke and Couling appeared before the work and pensions committee. There is also a Commons debate today on the Universal Credit rollout.

Gauke, the work and pensions secretary, and civil servant Neil Couling, Director General of Universal Credit, are known to resent criticism of the Universal Credit programme or its rollout.

Couling tweeted last week, in response to academic Jonathan Portas:

But MPs on the work and pensions committee, particularly its chairman Frank Field,  are sensitive to the DWP’s “good news” culture.

Field is reported to have said he suspected that ministers had only pressed ahead with the accelerated rollout of universal credit this month because civil servants at the Department for Work and Pensions had withheld the true scale of the problems.

Field said:

“Given everything we have heard, I was surprised that David Gauke opted to proceed with the accelerated rollout.

“I strongly suspect his decision, together with the failure to tell us anything, reflects a culture at the DWP of those most invested in universal credit not telling anyone, including their ministers, bad news.”

In its 2013 report “Universal Credit Early Progress“, the National Audit Office said,

“Both the Major Projects Authority [now the Infrastructure and Projects Authority] and a supplier-led review in mid-2012 identified problems with staff culture; including a ‘fortress mentality’ within the programme.

“The latter also reported there was a culture of ‘good news’ reporting that limited open discussion of risks and stifled challenge.”

BBC Radio 4’s Today programme heard this morning (18 October 2017) that a Universal Credit claimant who’d been the victim of “mistake after mistake” on his claim had threatened to take his own life and police had been called.

Update:

Gauke and Couling told the work and pensions committee this morning that the rollout may be paused in January 2018 as part of the department’s test and learn philosophy. They called it a “fire-break.  Couling said the rollout was paused in February 2016 for two months and “nobody noticed”.

He added that he was prepared to advise his minister, the Treasury and the prime minister to pause the rollout whenever the “evidence merits”..

Gauke said the advantages of the Universal Credit system were of such a “prize” that there was  cost of slowing down the rollout. “It can transform lives and it’s my determination is to deliver this successfully,” said Gauke.

Gauke and Couling told MPs that the rollout was working successfully. Neither expressed any criticisms of the programme or the rollout; and neither accepted the many criticisms of the committee’s MPs of the programme. At one point, Couling helpfully suggested to the committee some of the questions they “should” have been asking.

Where there were problems it was outside the DWP’s control – because of information supplied, or not supplied, by claimants or employers. The real-time information supplied to DWP by HM Revenue and Customs was only as good as the information provided to HMRC by employers.

Comment:

There’s universal support for the idea of Universal Credit. But there is almost universal criticism of the way it is being rolled out. Critics of the rollout also find it difficult to understand the DWP’s continuing refusal to accept that there are any serious problems.

For decades the DWP and its predecessor the Department of Social Security have been culturally unable to accept criticism of any of their big IT-based projects and programmes, even after a project was aborted.

One DWP director last year used the word “paranoid” when referring to her colleagues and their concerns about leaks of any bad news on the Universal Credit programme.

The DWP routinely declines FOI requests to publish its performance reviews on the Universal Credit programme. This lack of official information on the DWP’s performance leaves officials and ministers free to say that criticism of the programme is subjective or anecdotal.

Stephen Crabb was one of the few politicians who have ever made a difference to the DWP’s closed culture of secrecy and defensiveness. He ordered that internal reports on the risks and progress of the Universal Credit programme be released, against the advice of his civil servants. But Crabb didn’t stay long.

And the “good news” culture has returned, as unremitting as ever. Will any minister or civil servant be able to change the DWP’s “good news” culture?

Probably not.

The DWP’s permanent secretary Robert Devereux is retiring in January 2018, which will open the door to a successor who could try and change the department’s defensive culture.

It’s more likely, however, that Devereux’s replacement will be chosen on the basis that he or she will be a “safe pair of hands” which, in civil service terms, means a staunch defender of the department, its performance, all it is doing and the civil service in general.

However many independent voices call for a brake on the Universal Credit rollout, it seems inevitable that the DWP’s mandarins (and their pliant ministers) will carry on doing whatever they can justify to themselves.

The DWP hasn’t let humility or democratic openness get in the way before. Why would it give in to them now?

 

Is Gauke being told the whole truth on Universal Credit’s rollout problems?

By Tony Collins

“It is working,” said Work and Pensions secretary David Gauke in Manchester yesterday. He was referring to a plan to accelerate the rollout of Universal Credit from this month.

“I can confirm that the rollout will continue, and to the planned timetable,” he added.

But are civil servants giving Gauke – and each other – full and unexpurgated briefings on the state of the Universal Credit programme?

Last year, in a high-level DWP document that government lawyers asked a judge not to release for publication, a DWP director referred to

“a lack of candour and honesty throughout the [Universal Credit] programme.”

Senior civil servants were not passing bad news on the state of the Universal Credit IT programme even to each other.

The DWP document was dated several years after Iain Duncan-Smith, the original force behind the introduction of Universal Credit, found his internal DWP briefings on the state of the UC programme so inadequate – a “good news” culture prevailed – that he brought in his own external advisers – what he called his “red team”.

In 2013 the National Audit Office, in a report on Universal Credit, said a “good news” mentality within the DWP prevented problems being discussed.

If problems could not be discussed they could not be addressed.

Last year the Institute for Government, in a report on Universal Credit, said IT employees at the DWP’s Warrington offices burst into tears with relief when at last permitted – by external advisers –  to talk openly about problems on the programme.

The Work and Pensions Committee has questioned why DWP ministers told MPs all was going well with the programme when it was well behind schedule and beset with problems.

The Public Accounts Committee called the DWP “evasive and selective” when it came to passing on information about the state of the Universal Credit programme.

Is there any reason to believe that the “fortress mentality” that the NAO referred to in its report on Universal Credit in 2013 is no longer present?

When David Gauke announced yesterday that he is continuing the rollout of Universal Credit, was he basing his decision on the full facts – or a “good news” version of it as told to him by the DWP?

Comment

David Gauke will have been given the “new minister” treatment when he joined the DWP on 11 June 2017.

“The first thing you’ve got to overcome when you walk through the door is that everybody is being almost far too nice to you,” said one of Gauke’s predecessors, Iain Duncan Smith. He was speaking in 2016 after leaving the DWP.

IDS was much criticised for assuring Parliament all was well with the Universal Credit IT programme when it wasn’t. But maybe he was right to point out that, when he joined the DWP, he found that the “biggest cultural barrier” was getting civil servants to be honest about difficulties.

“The Civil Service, legitimately, see it as their role to deliver on politicians’ policy demands and this can sometimes make them resistant to the idea that they should inform you early of problems,” said IDS.

It was IDS who told BBC’s Radio 4 Today programme in December 2013, that Universal Credit was on track.

“It’s on budget. It’s on budget. Some 6.5million people will be on the system by the end of 2017.”

In fact, fewer than 700,000 people are claiming Universal Credit,  according to the latest DWP statistics.

DWP’s 30 years of a “good news” culture

In the past 30 years, it has been almost unknown for the DWP’s mandarins to concede that they have had serious problems with any of their major IT-based projects and programmes.

Perhaps it’s understandable, then, that Gauke apparently refuses to listen to critics and continues with the accelerated rollout of Universal Credit.

Would he have any idea that the Citizens Advice Bureau, in a carefully-researched report this year, said that some claimants are on the DWP’s “live service” (managed by large IT suppliers) which is “rarely updated” while other claimants are on a separate “full service” – what the CAB calls a “test and learn” system – which is still being designed?

Would Gauke know of the specific concerns of the all-party Work and Pensions Committee which wrote to the DWP earlier this year about Universal Credit decision makers being “overly reliant on information from [HMRC’s] Real-time information” even when there is “compelling evidence” that this data is  incorrect?

Would Gauke have any reason to believe those who refer to regular computer breakdowns and inaccurate and inconsistent data?

In the DWP’s own document that it did not want published, the DWP director said that, internally, “people stopped sharing comments which could be interpreted as criticism of the Programme, even when those comments would be useful as part of something like an MPA [Major Projects Authority] review.”

Many staff believed the official line was ‘everything is fine’. Nobody wanted to be seen to contradict it.

All this suggests that the DWP will carry on much as before, regardless of external criticism.  Individual ministers are accountable but they move on. Their jobs are temporary. It’s the permanent civil service that really matters when it comes to the implementation of Universal Credit.

But mandarins are neither elected nor effectively accountable.

NHS IT programme?

There may be some comparisons between Universal Credit and the NHS IT programme, the £10bn NPfIT.

A plethora of independent organisations and individuals expressed concerns about the NPfIT but minister after minister dismissed criticisms and continued the rollout. The NPfIT was dismantled many years later, in 2011. Billions was wasted.

Based on their civil service briefings, NPfIT ministers had no reason to believe the programme’s critics.

Universal Credit has more support than the NPfIT and the IT is generally welcomed, not shunned. But the Universal Credit rollout is clearly not in a position yet to be speeded up.

Whether Gauke will recognise this before his time is up at the DWP is another matter.

Like IDS, Stephen Crabb and Damian Green – all secretaries of state during the rollout of Universal Credit – Gauke will move on and his successor will get the “new minister” treatment.

And the cycle of ministerial “good news” briefings will continue.

Perhaps the DWP’s senior civil servants believe they’re protecting their secretaries of state.

As the civil servant Bernard Woolley said in “Yes Minister”

“If people don’t know what you’re doing, they don’t know what you’re doing wrong.”

Thank you to David Orr, an ardent campaigner for open government, who alerted me to Universal Credit developments that form part of this article.

HMRC appoints Microsoft executive as head of IT

By Tony Collins

Government Computing reports that HMRC has appointed a new chief digital and information officer, Jacky Wright, who is currently Microsoft’s corporate vice-president, Core Platform Engineering.

Theresa May ratified Wright’s appointment. Candidates were considered from across the civil service and the public and private sectors, and internationally.

The chief executive of HMRC Jon Thompson said,

“Jacky is a seasoned commercial leader with ‘best in class’ credentials, globally. Balancing strong operating experience with a record of driving innovation… Her influence as a technology leader and as a champion for the role of women and BAME [black, Asian, minority ethnic) in industry, is a major win for this organisation.”

Wright will take up her appointment from 16 October. She said,

“I am passionate about the impact innovation can have in truly transforming services for people and businesses in a positive way and want to continue the great work being done within HMRC and across the Civil Service at this time. I am proud to represent women and BAME in technology and will continue to promote the vital role of diversity within our industry and more broadly.”

One of HMRC’s biggest IT challenges in the coming months and years will be to detach itself from the £10bn “Aspire” outsourcing deal in which Capgemini and Fujitsu are the main suppliers.

Aspire is being broken up. HMRC says the contract is already “dead” but the department will rely on Capgemini as a strategic supplier until June 2020 and most probably beyond. HMRC has spent at least £720m a year on Aspire since 2008, including 2015/16.

Comment:

After spending years trying to distance itself from major IT suppliers, HMRC has appointed a top Microsoft executive as its new head of IT.

That said, Wright is an excellent appointment. She’s widely recognized for her contributions to the technology industry and for championing diversity. She has been in Britain’s Powerlist 100 of Most Influential People, the Top 100 BAME Leaders in Business, and Savoy Magazine’s Top Women list.

The challenge for Wright will be to use her influence and skills in a civil service that, at the top level, may not fully appreciate her. Will she feel sufficiently valued and stay?

Francis Maude – the former IT reformer and Cabinet Office minister – said in a Speaker’s Lecture this week that the civil service values policy experts more than operational and technical leaders.

“Policy nearly always trumps operational and technical skills for the leadership roles,” said Lord Maude.

“It feels like a class divide: there are the white-collar policy mandarins, and the blue-collar technicians who do operations, finance, procurement, IT and digital, project management, HR, and so on.

“All the attempts to create genuine parity of esteem have failed. This has to change in the future. Many government failures could have been prevented if operational and technical teams had the same access to Ministers as do policy officials.”

In working for HMRC,  Wright may need to acclimatise to a civil service culture that could, at times, strike her as frustrating, closed and irrational.  HMRC’s former IT chiefs include Steve Lamey, Phil Pavitt and Mark Dearnley.

Will an innovations specialist of Wright’s calibre last at HMRC? If she does, it could imply that HMRC is defying the civil service culture and is valuing a top international IT professional.

If she doesn’t last, it could imply that she has been hired as a Formula One driver and then given a Prius to race.

The Prius is an impressive piece of machinery. But it’ll never go particularly fast, however expertly it’s driven.

Microsoft’s Jacky Wright named as HMRC’s new CDIO

 

Nine-year outsourcing deal caught on camera?

By Tony Collins

This photo is of a Southwest One board that was surplus to requirements.

Southwest One continues to provide outsourced services to Avon and Somerset Police. The 10-year contract expires next year.

But unless Southwest One continues to provide residual IT services to the police, the company – which is owned by IBM – will be left without its three original public partners.

Photo a metaphor?

IBM and Somerset County Council set up Southwest One in 2007  to propel council services “beyond excellence”.

Joining in the venture were Taunton Deane Borough Council and Avon and Somerset Police. The hope was that it would recruit other organisations,  bringing down costs for all.

It didn’t happen.

An outsourcing deal that was supposed to save Somerset residents about £180m over 10 years ended early, in 2016, with losses for the residents of about £70m. The council and Southwest One settled a High Court legal dispute in 2013.

Taunton Deane Borough Council also ended the deal early, in 2016.

Comment

Was it all the fault of Southwest One? Probably not. The success of the deal was always going to be judged, to some extent, on an assumption that other organisations would join Southwest One.

When that didn’t happen, two councils and a police force had to bear the main costs.

There was also the inherent problem that exists with most big council outsourcing deals: that it’s always difficult for a supplier to innovate, save money on the costs of running council services, invest significantly more in IT, spend less overall and still produce a healthy profit for the parent company.

It could be done if the council, police force or other public body was manifestly inefficient. But Somerset County Council outsourced what was, by its own admission, an excellent IT organisation.

Some at the time had no doubts about how the outsourcing deal would end up.

Southwest One – The complete story by Dave Orr