Supplementary Memorandum submitted by
the Information Technology Services Agency (ITSA 1A)
1. Q41. Details of the 1998 pay strategy for ITSA—impact
on staff retention
1.1 In response to a question on how ITSA has
tried to stop staff with valuable IT skills leaving the Agency
to join the private sector, our pay strategy was mentioned as
an example of how ITSA has acted to reduce attrition rates.
1.2 Evidence from exit interviews with staff
who were leaving the Agency and a recent pay review indicated
dissatisfaction with inflexibilities in the existing pay system.
There was a clear business need to target the vulnerable IS/IT
specialist jobs.
1.3 The objectives were:
— In view of current IS/IT labour market
trends, to retain the key skills and the intellectual input required
to enable ITSA and the Department to deliver the Work Programme
over the next 5 years;
— To slow down the attrition rates
of IS/IT Specialists which were running at around 20 per cent;
and
— To ensure that the proposals were
containable within existing running costs and consistent with
our longer-term remuneration strategy.
1.4 The strategy included several components:
— The introduction of a performance-related
progression path within existing pay ranges based on levels of
competence;
— Enhanced progression for specialist
IS/IT staff to enable them to move to the highest competence point
within their pay range within four years—subject to performance;
and
— The highest pay point for staff with
specific IS/IT skills is comparable with equivalent scales in
the marketplace.
1.5 The structure of the system for progression
through the pay scales ensured that the gap between specialist
staff and other key staff would not grow disproportionately. The
progression system was underpinned by the development of Job Title
definitions and associated competencies.
1.6 In addition, the strategy also included
a minimum increase for all staff in line with the cost of living,
and non-consolidated performance bonuses for high achievers, rewards
for individual staff based on their performance, skills and competencies
and their contribution to the organisation.
1.7 The strategy was implemented entirely within
Treasury guidelines on pay. Staff and TU feedback clearly indicates
that there is recognition across the organisation for the positive
steps taken to address staff concerns about pay and rewards and
the threat to the stability of the organisation. The strategy
has resulted in resignation rates for IS/IT specialists reducing
to predict levels, currently down to 6.4 per cent.
2. Q62. How many Personal Computers are there
in the Department?
2.1 There are currently over 70,000 Personal
Computers of varying age, type and specification in the Department
in addition to 55,000 thousand "dumb" terminals (a monochrome
device with no local processing capability).
3. Q63. What security measures are in place to
make sure that computers and chips are not stolen and do you have
any records about how many are stolen from ITSA itself and the
DSS generally?
3.1 In DSS between April 1998 and March 1999
there have been a total of 61 PC and chip thefts reported across
the Department. This figure comprises;
3 Central Processing Units
1 external tape and disc drive
3.2 The figures for ITSA from April 1998 to
date show that there have been 12 PC and chip thefts;
1 Central Processing Unit
1 external tape and disc drive
3.3 The Department employs a range of protective
measures, based upon localised risk assessment, to deter thefts
of assets, both IT and non-IT, from its premises. A conscious
decision has been taken not to adopt a standard approach for all
buildings and wide ranged intruder detection devices are employed.
The following examples illustrate the type of measures that are
taken, in accordance with DSS IT security standards;
— Asset registers and regular asset
checks;
— Control logs to audit removal of
equipment on and off site;
— Continued use of CCTV on major sites;
— Controls over the issue of passes
are reviewed regularly and strengthened;
— Swipe card systems on major sites,
and random stop and search of vehicles;
— New procedures designed to tighten
controls surrounding the access of contract staff to sites and
to ensure that they only have access to areas necessary for them
to carry out their duties;
— Security assurance reviews which
are designed to confirm adherence to IT security standards as
well as identifying any other potential areas of weakness. This
programme of work is risk based to ensure high-risk areas are
reviewed more frequently. All areas are reviewed once every eighteen
months;
— Enhanced security training and awareness
workshops to raise awareness and encourage a standard approach
to security, and production of a video for staff on various aspects
of security; and
— Further emphasis on the importance
of securely storing IT equipment prior to installation.
4. Q71. The number of business transactions being
carried out electronically at present and an indication of what
may be able to be carried out electronically in the future
4.1 Last year the DSS dealt with 15 million
benefit claims, 33 million changes of circumstances, made nearly
a billion payments and handled upwards of 160 million telephone
enquiries. The Department paid £90 billion of benefits to
30 million claimants, maintained 60 million NI records, and collected
£40 billion NI Contributions and £300 million in Child
Maintenance. This includes the issuing of 57 million order books,
85 million girocheques, 75 million Automated Credit Transfer (ACT)
records, and 150 million forms and notifications.
4.2 In October 1997 the Prime Minister set a
target that, within 5 years (by 2002), 25 per cent of all government
dealings with the public should be capable of being done electronically.
Current figures show that DSS is already exceeding the target
for 2002 (standing at 35 per cent) and by 2002 we expect to be
conducting around 37 per cent of transactions electronically.
Further targets of 50 per cent electronic capability by 2005 and
100 per cent in 2008 were published in March in the "Modernising
Government" White paper.
4.3 In terms of potential future capabilities,
the following additional observations may be helpful. Within the
next five to eight years, most applications and changes of circumstances
could be based on telephone or other electronic media, but the
take up of any such option is difficult to quantify at this stage.
4.4 DSS has agreed with CITU to continue to
investigate four main areas or "dealing definitions"
for electronic transactions. These are applications, verifications,
changes of circumstances, and number of benefit recipients.
4.5 DSS currently has the capability to make
almost all payments electronically (via ACT). However, this is
not the preferred payment method for the majority of citizens
who receive Social Security payments. The policy remains that
DSS will continue to offer options on payment methods according
to the wishes of the individual.
4.6 Market research also shows that, in claim
taking it is the balance of personal advice, supported by IT,
which provides the best results both for the citizen and the Department.
For example, the pilot for claiming pensions via telephone with
DSS staff using electronic claim forms on the desktop resulted
in seven out of 10 pensioners giving this system a rating of ten
out of ten.
4.7 Even within the four separate dealing definitions
now being used, there are opportunities to tackle elements, or
phases, of each of these more electronically than others. For
example, for those citizens who are comfortable completing a claim
form on their own, the option of doing this on the Internet and
e-mailing it to a DSS Gateway may be an attractive possibility.
From then on, an existing DSS process would be used to handle
the claim.
4.8 In addition, DSS is currently identifying
processes that for operational or policy reasons are incapable
of delivery electronically, or for which there is unlikely to
be demand, and examining the likely impact of payments cards,
and the issues surrounding the introduction of electronic signatures
and other aspects of verification.
5. Q74. Memorandum on Year 2000 submitted to SSSC
in February 1997 suggested costs of £30 million. The cost
shown in this memorandum is £45.7 million. Why the difference?
5.1 The original estimate of £30 million
derived from the initial study carried out in 1997 which looked
at the IT implications of Year 2000. The original estimate was
for indicative purposes and was arrived at before the outline
work programme had been fully completed. In November 1997 we reported
to CCTA that a more accurate figure including projected spend
to the end of the programme (March 2000—but some Post Implementation
Review work may go into the following financial year) was in the
region of £45 million. This figure was used in the first
corporate Business Case, which went to HM Treasury in January
1998 and was approved by them the same month. Since then there
has been little fluctuation.
5.2 The current estimate of £45.7 million
is based on actual spend from 1996 to date, and takes into account
estimated costs in respect of Business Assurance Testing, the
Year 2000 specific element of business continuity planning and
the Millennium Operating Regime. This figure thus provides a much
more accurate estimate based on actual experience and actual work.
6. Q81. What costs have been incurred so far on
Euro compliance, and what do you expect the costs to be?
6.1 To date the cost of work on considering
the impact of EMU from 1st January 1999 on DSS services and on
considering potential impacts if the UK decides to join is approximately
£0.5 million.
6.2 The DSS EMU Programme, which is led by DSS
HQ, is currently working to establish a better view of potential
impacts and cost of compliance. It will take some time to gather
this information, and the Programme hopes to produce an early
business case in June/the summer which will largely address business
impacts at this stage.
6.3 A more detailed business case including
estimates on the IS/IT impacts will be produced by the end of
the year. A pilot is planned for the second half of this year
to give better indications of implementation options and resource
requirements, and the associated costs. The DSS will have a better
indication of impacts by the end of the year, and until then it
is not possible to give any indications of likely costs.
Mr George McCorkell
Chief Executive
4 May 1999
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