Category Archives: HMRC

Timetable for HMRC’s work on Universal Credit is “challenging” says NAO

By Tony Collins

Today’s report of the National Audit Office on the accounts of HMRC is, perhaps diplomatically, silent on the performance of HMRC’s work so far on Universal Credit, other than to say the timetable for roll-out beginning in October next year is “challenging”.

There have been internal assessments of HMRC’s “Real Time Information” [RTI] project, on which the success of Universal Credit is dependent, but none has been published other than the “Starting Gate”.

Today’s NAO report on HMRC says the “timetable for implementation of RTI is challenging”. It adds:

“The Department for Work and Pension’s timetable to implement Universal Credit is driving the timetable to roll-out RTI. The Department for Work and Pensions requires real time PAYE information on employment and pension income to award and adjust Universal Credit.

“It is rolling out Universal Credit from October 2013 to 2017. All employers and pension providers need to be using RTI by October 2013 to meet this timetable.

“The Department met its milestone to start its RTI pilot in April 2012 with ten employers. By July 2012, it expects a further 310 employers will be using RTI. At 31 May 2012, 209 PAYE schemes covering 1.5 million individual records were using RTI.”

NAO report on HMRC’s 2011/12 accounts

HMRC still plagued by IT problems.

Time for truth on Universal Credit

HMRC “still plagued by IT problems”

By Tony Collins

HMRC has one of the biggest IT outsourcing contracts in central government, a deal worth about £8bn with Capgemini, which began in 2004. Before that, between 1994 and 2004, the main IT supplier was EDS, now HP. But HMRC has had pervasive IT-related challenges for more than a decade.

Today Margaret Hodge, Chair of the Committee of Public Accounts, commented   on a report by the National Audit Office on HM Revenue & Customs’ 2011-12 accounts.

“Sadly it is no surprise that the NAO has found substantial problems with the HMRC’s accounts. This year has seen a litany of tax errors and scandals come to light with mistakes made at the most senior level from the Permanent Secretary for Tax downwards.

“The sheer scale of waste and mismanagement at HMRC never ceases to shock me. Without even mentioning the tax gap, in 2011-12 the Department wrote off a staggering £5.2 billion of tax owed, overpaid nearly £2.5 billion in tax credits due to fraud and error and underpaid around £290 million.

“In some areas the Department is moving in the right direction and has made progress to implement improvement plans. But the Department is still plagued by IT problems; limiting, for example, its ability to link together the debts owed by tax payers across different tax streams.

“With its long history of large scale IT failures, the Department needs to get a grip before it introduces its new real time PAYE information systems and begins the high-risk move from tax credits to the Universal Credit.”

Timetable for HMRC’s work on Universal Credit is “challenging” says NAO.

NAO – HMRC’s 2011/12 accounts

Time for truth on Universal Credit.

HMRC loses an important voice on its board

By Tony Collins

Steve Lamey, who is leaving HM Revenue and Customs as Director General, Benefits and Credits, has worked tirelessly to improve the organisation’s systems and administration; and he has gained a reputation for listening to IT suppliers.

In 2007 he  won a British Software Satisfaction award for his work in promoting collaboration within the business software industry. He joined HMRC in October 2004 as CIO.

He is perceived to be leaving at a time when there are a number of vacancies at the top of HMRC. Accountancylive reported last month there was an “exodus”of senior officials from HMRC, and morale is said to be low.  But a man as influential as Lamey can do only so much.  Anyone who wants to effect major change at  HMRC must move an iceberg with a rowing boat. That said there have been some HMRC IT-related successes.

Was Lamey an unexploded force at HMRC?

But it’s conceivable that Lamey could have achieved more if he had carried on the way he started: by highlighting the need for change.

He unwittingly made a name for himself in 2005 after a speech he gave to a Government IT conference in which he revealed some of the corporate weaknesses of HMRC, an the organisation he had  joined not long before.

He  probably had not expected  his comments to be reported first in Computer Weekly and then on the front page of the Daily Telegraph.

At that time Lamey was HMRC’s new CIO. He told delegates of some of his discoveries, namely that:

– At least 31 million wrongly addressed letters were being sent out.

– Nearly half of self-assessment tax forms were being incorrectly processed and had to be done again.

–  he had been struck by the out-of-date computer systems. He told the conference: “If I were an information technology historian I would love it. We need to move on from there.”

– his  “biggest, biggest, biggest challenge” was correcting “poor quality data”.

Later a Daily Telegraph article, quoted me as saying “Mr Lamey’s frank assessment of the state of the tax department’s processes and systems is a rare and fresh approach for a senior government official.”

But was Lamey muzzled?

After that article it seems that Lamey was effectively muzzled, at least from making disclosures in public about HMRC’s flaws. Board papers at the time indicated that senior civil servants at HMRC would, in future, have to clear their public speeches in advance. Lamey did not make a similar speech in public again, not to my knowledge at least.

Richard Bacon MP, a member of the Public Accounts Committee, spoke at the time of the apparent attempts by HMRC to silence Lamey.

“It was refreshing to have a senior IT specialist, who is familiar with the business issues, and who is prepared to identify clearly what the scale of the problems is. Unless you’ve got that degree of frankness and candour, I don’t think you’re really going to solve the underlying problems. The alternative is to be in denial, to suggest that the problems don’t exist. It is plain that they do.”

The then Shadow Treasury minister Baroness Noakes, who was formerly a partner at KPMG, said she was concerned that it was already hard for parliament to discover how well HMRC was managing its business.

She said HMRC was “apparently silencing people from telling the truth”. She added “Speaking the truth [in the public sector] in the way you do in the private sector may well not be as acceptable.”

Would Lamey have been even more influential if he had continued – in public – to point to the weaknesses HMRC needed to tackle?

So defensive is HMRC that it considered a positive PR campaign to highlight its strengths after the loss of two CDs which contained the details of 25 million people.

Can an organisation that intuitively discounts and suppresses the negatives while trumpeting the positives ever properly reform itself? Probably not. If you cannot accept you have problems you cannot resolve them. We wonder how HMRC is getting on with its part of the Universal Credit project … its officials say all is well.

Attempts to constrain HMRC directors.

Front page Telegraph article with references to Steve Lamey’s speech

HMRC honcho poached.

Time for truth on Universal Credit

Hungry re-seller bags Steve Lamey.

Whistleblower punished?

Is DWP stance on Universal Credit reports mocking FOI?

By Tony Collins

The Department for Work and Pensions, which has remained as secretive over the progress or otherwise of its IT-based projects as before the 2005 Freedom of Information Act, has, as expected, rejected our FOI request for reports on the state of the Universal Credit project.

We have appealed and the DWP has, as is customary, delayed its response. It appears that the Department works on the principle that the longer it delays FOI responses the more out of date will be its reports when the Information Commissioner eventually rules they must be published.

In its reply to us, the DWP gave reasons for hiding a report it has already put in the public domain: a “Starting Gate Review” of Universal Credit.

Hiding reports under its jumper

The review was carried out in February 2011. That the DWP is keeping under its jumper a public report suggests that its responses to the FOI Act owe more to instinct than proper consideration.

The DWP also refused to publish, under the FOI Act, a Universal Credit “Project Assessment Review in November 2011” by the Cabinet Office’s Major Projects Authority.

These are the reasons Ethna Harnett, Universal Credit Division, DWP,  gave for refusing our FOI request for Universal Credit project progress reports:

– “Further reviews, by the Major Project Authority and by the National Audit Office are planned.”

– “Elements of the information you requested is being withheld as it falls under the exemption in Section 36 (2) (b) and (c) of the Freedom of Information Act. This exemption requires the public interest for and against disclosure to be balanced.”

– “The information you have requested includes details of a sensitive nature whose publication would prejudice effective conduct of public affairs. There is a strong public interest in the Department maintaining an efficient and effective risk management and assurance process and in ensuring that this process is not undermined by premature disclosure particularly where risks are not yet fully mitigated.”

– “There is also a strong public interest in the Department being able to carry out and use frank assessments, including unrestrained and candid contributions from business areas. ”

– “The assurance reports produced by the Major Project Authority are not shared beyond the Senior Responsible Owner and interested parties within Government.”

– “DWP Ministers have, however, committed to update Parliament on the Universal Credit programme through written ministerial statements. These statements are available on the Parliamentary website – www.parliament.uk.”

– “The Major Projects Authority will publish information on the progress of the Government’s high-risk and high-value projects, referred to collectively as the government major projects portfolio, alongside the first annual report at the end of this financial year.”

Comment:

The DWP has never met any of our FOI requests and has, in every case, delayed its responses to our requests for internal appeals. The result of the appeals is always the same – the upholding of the original decision. We are in awe of the DWP’s ability to detach its IT operations from the FOI Act.

The DWP considers it is acting in the public interest: that assessments of its IT-based projects such as Universal Credit would not be candid if they were put in the public domain.

But if the DWP had got this right and that its assurance reports would be less effective if published, we’d expect to see successes with major DWP IT-based projects. We don’t see the evidence.

Indeed the signs are that Universal Credit, the DWP’s biggest project, is in trouble; and after 20 years the Department is still having trouble combining its various benefit systems.

The National Audit Office has qualified the DWP’s accounts every year for the last 23 years, largely because of the level of official error and fraud.

Is this a department that is getting IT right?  There is no evidence it is; and some evidence suggests it isn’t.

The DWP needs to change. It needs to see openness as an opportunity not a threat. Openness would show that officials are prepared to be measured publicly against the findings of their assessment reports. That needs self-confidence.

On the other hand secrecy permits an uneasy introspection, allows weaknesses to take hold, and gives officials comfort in not changing.

Somerset Maugham put it well in his excellent book Of human Bondage. He said: “Like all weak men he laid an exaggerated stress on not changing one’s mind.”

Time for truth on Universal Credit

Millions of pounds of secret DWP reports

Universal Credit latest

FOI blog

Trying to kill the FOI Act?

HMRC picks an SME – and saves itself £50m

By David Bicknell

HM Revenue & Customs (HMRC) cut the cost of an Internet Explorer upgrade by up to £50m by awarding a contract to an SME, instead of a major systems integrator.

According to an article by Bill Goodwin on Computer Weekly, HMRC chose a small US company to upgrade from Internet Explorer 6 to IE9, after it found that large IT suppliers were unable to offer a cost-effective solution.

The Redmond-based company, Browsium, managed to complete the work for £1.28m, against quotes of £35m to £50m from much bigger companies.

Goodwin reports that HMRC CIO Phil Pavitt believes the contract will act as a proof of concept for other government departments facing similar IE6 upgrade problems.