30 April 2004
Despite the government's commitment to reduce the size of Whitehall, the number of permanent and casual civil service staff increased during 2003, as several departments took on extra responsibilities.
According to Cabinet Office figures released on April 21, there was a 3.5% increase in the number of permanent staff and a 3.2% increase in part-time workers over the year.
That will fuel accusations that any firm reduction in civil service numbers outlined later this summer by Sir Peter Gershon's efficiency review will be difficult to achieve.
As of October 1, 2003, the number of permanent civil servants was 516,990 — a rise of 4,509 or 0.9% on six months earlier. The number of casual staff also increased by 1,020.
The Home Office's fast-expanding remit is one of the major causes of the rise. More than 1,000 staff were recruited to deal with operational needs within the Immigration and Nationality Directorate, while 1,560 were recruited to the Department for Work and Pensions to implement the new pension credit.
Meanwhile, the Cabinet Office has claimed success in terms of civil service diversity, particularly at senior management level.
Last week's figures show that 52.4% of Whitehall staff are women, a slight rise on 2002's figures, with 23.9% now in senior positions, compared with 12.7% in 1998.
The proportion of staff from ethnic minority backgrounds has also risen, by 0.1% to 8.1% since April 2003. Some 3.2% of senior staff are from ethnic minority backgrounds, compared with 1.6% in 1998.
However, a spokeswoman for the Cabinet Office said the figures 'should be interpreted with caution' because staff responded to surveys on a voluntary basis.
DWP dispute escalates as managers are suspended
More civil servants at social security and benefit offices could be suspended over their refusal to conduct staff performance reviews under the Department for Work and Pension's new pay regime.
Six managers at DWP offices in Scotland, Lancashire and Yorkshire have already been sent home indefinitely after refusing to assess colleagues under the disputed performance development system (PDS), which will be imposed on staff from next week despite a legal challenge in the High Court.
Last week, around 600 staff at DWP agencies in Scotland staged wildcat strikes after John Cook, a prominent member of the Public and Commercial Services union, which has opposed the PDS, was suspended for refusing to comply.
That was quickly followed by the suspension without pay of a manager in Morecambe, Lancashire. On April 26, four more managers in Leeds were sent home.
PCS general secretary Mark Serwotka said that suspending staff was 'serving only to inflame a worsening situation'.
The union, which launched a legal challenge to the PDS last week, has encouraged members to oppose the new system up to the point where staff are threatened with suspension.
A spokesman told Public Finance: 'What we cannot control, however, is the extent of the anger members are showing over this issue. We expect more managers will be suspended, because opposition to the new pay regime is deeply ingrained.'
DWP permanent secretary Sir Richard Mottram claims 86,000 staff will receive pay rises in excess of 5% under the new deal. But the PCS says the use of a controversial quota system to determine performance-related bonuses means the PDS breaches the department's own pay guidelines.
Spending on consultants soars by 100%
Whitehall departments spent more than £1bn on management consultants last year – a rise of 100% on 2002 – making the government the UK's largest purchaser of such services, according to figures released this week.
If non-government bodies are taken into account, the entire public sector spent more than £1.3bn on advice last year, while the private sector was slashing such costs.
The figures, which equate to £3m per day, were released by the Management Consultancies Association on April 26.
They show that public sector spending on such services are 'far outstripping the rates of growth seen in other sectors'.
Among the biggest contractors were the Department for Work and Pensions, Transport for London, the Inland Revenue, the Home Office and the NHS.
Significantly, sources within Whitehall believe that last year's figures will be matched this year. One source told Public Finance: 'As part of its plans to overhaul Whitehall and find efficiencies, the government has made wider use of external expertise. That will continue for now.'
The MCA report agrees that government spending on contractors is likely to continue apace until the next general election – which could be as far away as June 2006.
Moreover, current government spending on advice could be far greater than even the MCA calculates. The association represents just 60% of the management consultants' profession and many large contractors are non-members, including McKinsey, which is used often by Whitehall.
The MCA recently elected public sector expert Lynton Barker as its president. Upon taking the job, Barker said: 'My public sector contacts will stand me in good stead at a time when both central and local government are making increasing use of consultants.'
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