01 September 2006
Contrary to popular opinion, the government has successfully used IT to transform a variety of services, from electronic payment of benefits to the Jobcentre Plus Job Bank. And the transformation continues
Since joining the Cabinet in May, I have been working with my colleagues to support and improve public services through next year's Comprehensive Spending Review, which will set spending priorities for the next generation. So it was with great interest that I read Owen Barder's feature on the use of IT in the public sector ('Fear of trying', August 18–31 ).
As chair of the Cabinet sub-committee on electronic service delivery, I see the application of IT as one of the key enablers for the transformation in the public services that we need: a transformation that is vital for maintaining our recent economic success.
There was a huge backlog of under-investment in public services when we were elected in 1997. If government spending had continued at the levels we inherited, public services would today be on their knees. Instead, we have invested in new hospitals, wards and schools with far better equipment, and have modernised transport. As a result, we are much better positioned to deal with the challenges ahead.
But, having corrected the legacy of neglect, taxpayers need to know that the government will secure the best possible value for money as we continue to develop public services. Already this approach has meant much greater use of IT.
Indeed, some people are surprised to discover just how much IT systems have contributed to better services and better efficiency over the past few years. These are projects that are being implemented successfully and are improving both service quality and value for money.
For example, since April 2003, we have phased out the old giro system for paying pensions and benefits — a technology based on wartime ration books. Today, benefits are paid electronically, directly into more than 22.5 million bank accounts and Post Office card accounts. We were told that the project would be a disaster, that elderly people would not be able to cope with Pin numbers and that the IT would break down.
But the doubters have been confounded. The system worked smoothly from day one and proved a big hit with the public. By 2008, it will have saved taxpayers more
than £1bn.
Another impressive example is the Jobcentre Plus Job Bank, the most popular job search service in the UK, with details of 400,000 vacancies and used for four million searches a week. It can be accessed via JobPoint terminals in every jobcentre, and more widely too — via any online terminal through www.direct.gov.uk. There are also JobPoint terminals on the concourse at Stansted Airport and at Asda in Swindon.
This is a far cry from the old system of postcards pinned to jobcentre notice boards, and is one of the key reasons why we have 2.4 million more jobs since 1997 —demonstrating how smart IT-based investment is vital for our ambition of achieving and maintaining full employment.
DirectGov provides a unique service across government, and is visited by more than 80,000 citizens each day. Over 99% of passports are issued within ten days thanks to effective computer systems. More than half of all driving tests are booked online. Such changes are improving the services provided to millions of people every day.
More recently, as part of the Gershon efficiency programme, the use of e-auctions has provided an innovative new tool in securing better value for money in government procurement. Already the procurement programme is reporting savings of £3.7bn per annum, in large part through use of the internet and other electronic means.
Looking ahead, I am determined that we should learn lessons from our past experience and embrace the use of IT across government, not merely to cut costs but also to improve the delivery of public services and offer new ways for people to access services. This will be especially important in the next phase of modernisation, as growth in spending moderates.
Recognising the potential for further substantial improvements, the chancellor asked Sir David Varney to lead a programme across government. This draws on the Transformational government strategy, and will look at a range of issues from raising the quality of service in call centres to improving support to frontline staff. It will also consider building on the success of many local authorities' 'one-stop shops'. All these areas have the scope to adopt better and more efficient processes, and the role of IT will be integral.
So this government is committed to matching new investment with continued improvement. We face major long-term challenges — demographics, climate change, technological change and globalisation — but by remaining focused on our reforms, planning ahead with care and harnessing new technology in public services, we can be confident of success.
Stephen Timms is chief secretary to the Treasury
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