Thirty-third report of Session 2005-06 : Documents considered by the Committee on 28 June 2006, including: consultation on fisheries management proposals, report, together with formal Minutes

Twenty-third report of Session 2005-06 : Documents considered by the Committee on 29 March 2006, including, Promotion of clean road vehicles, report, together with formal Minutes

Drawing special attention to: Public Benefit Corporation (Register of Members) (Amendment) Regulations 2006 (S.I. 2006/361).

In 2004-05 HM Revenue and Customs paid £15.8 billion of Tax Credits. The Department recalculates each award annually and has identified that for 2003-04 it overpaid some £2.2 billion to 1.9 million families. It believes that 2004-05 will see a similar level of overpayment. This is partly due to the nature of the scheme where awards are provisionally based on previous income whilst the final award is based on actual income. However the level of overpayment has been higher than was initial estimated and repayments have caused distress to some families. This report looks at measures being taken to reduce overpayments; claimant error and fraud; and the settlement with EDS over problems with the computer system. The Committee attaches great importance to this subject and wish to return to it in the future.

The Foreign and Commonwealth Office (the Department) provides a wide range of consular services from over 200 Embassies, High Commissions and Consulates ("Posts") worldwide. On the basis of a report by the Comptroller and Auditor General (HC 594, session 2005-06, ISBN 010293617X), the Committee examined three main issues: their progress in influencing British nationals travelling overseas; developing consular services as a responsive service; and reacting to consular crises. The Department has made some significant innovations, such as working with operators like EasyJet and publishing the Rough Guide to Safer Travel, to increase its influence on those travelling overseas. But consular staff are increasingly called to help the irresponsible minority whose problems may have been avoided by greater awareness and planning before travelling, or by sensible behaviour once abroad. The Department used its existing powers to charge for consular services in just 323 out of 84,000 assistance cases. In 2001, the Department procured a casework management system at a cost to date of £3.3 million, but this has not been successfully embedded across the organisation, and has not produced the management information the Department needs to manage its consular business effectively. Issuing passports at over 100 Posts is inefficient and exposes the Department to increasing risks from fraudulent applications. The Department has improved its crisis management capabilities since 2001, although there has been slow progress in updating and testing emergency plans at Posts. The Indian Ocean Tsunami presented an extreme challenge for consular services; their call centres were overwhelmed and they were unable to assist British nationals as quickly as they would have wished.

The complexity of the benefit system is a key factor affecting the performance of the Department for Work and Pensions. Although this complexity is often necessary in order to administer the system cost-effectively and protect public funds against abuse, it can also result in high levels of error by staff, confusion for customers and help create a climate where fraud can more easily take place. The Committee's report finds that although the DWP has taken steps to address this problem (for example, in the design of Pension Credit, simplifying claim processes for several benefits and better sharing of information with local authorities), these are rather piecemeal developments and it is difficult to tell whether the system as a whole has become more or less complex as there is currently no objective way of measuring it. Some of the steps taken to simplify processes for customers are a way of managing complexity, rather than eliminating it. Managing complexity requires well-trained staff supported by accessible guidance and assistance and efficient information technology systems, and the DWP should also improve its written communications with customers.

The term third sector describes a range of voluntary and community sector organisations including small local community groups, registered charities, foundations, trusts and co-operatives. Following on from the NAO report (HCP 75, session 2005-06; ISBN 0102933243) published in June 2005, the Committees report examines the progress made by central government departments and other funders to improve the way they work with the third sector to achieve value for money in the provision of public services. Findings include that voluntary sector funding represents less than one per cent of central government spending and only limited progress has been made to increase the sectors involvement in delivering government programmes. Voluntary sector organisations are often subject to greater scrutiny and monitoring than private sector providers, and fairer funding practices need to be applied by departments. The Public Service Agreement target to achieve a five per cent increase in voluntary sector participation in public service delivery by 2006 is likely to be met, but the Home Office and the Treasury need to set revised targets beyond 2006 to provide a real incentive to departments to increase their engagement with the sector.