Benefit system 'must be simplified'

Friday, 18 November 2005 12:00 AM

Britain's benefits system is too complex and requires a more systematic and strategic approach, a new report from the National Audit Office (NAO) suggests.

Auditor general John Bourn warned that the system's complexity is "one of the most important issues affecting the performance of the Department for Work and Pensions (DWP)".

The assessment notes that the DWP has started to address key principles for the future of the system, including designing new benefits to reduce complexity, removing anomalies, simplifying processes, sharing information and using technology better.

Sir John has called on the government department to develop a strategy to tackle complexity problems in both the short and long term, building on a commitment earlier this year to simplify the benefits system.

The DWP administers about 40 benefits, allowances and grants to millions of Britons and aims to achieve equity and fairness between individuals, while "providing incentives, meeting specific needs and incorporating safeguards against abuse".

The NAO report accepts that a certain degree of complexity is essential to the department, particularly after years of legislative change.

But it warns: "The effects of complexity can be seen in many ways. For example, it can be associated with errors in benefit payments, due to staff and customer mistakes.

"It can also reduce the ability of staff to explain benefit regulations to customers and makes it hard for some customers to understand what is required of them."

The DWP published a five-year strategy in February this year, stating that it plans to move forward ".exploring and developing ways to simplify benefits while continuing to protect social security expenditure".

It accepts that more needs to be done to simplify the system, and some of the changes will be outlined it the forthcoming green paper on welfare reform.

Sir John added: "There is a balance to be struck between a system which is detailed enough to respond to needs and yet straightforward enough to be run efficiently, communicating clearly with customers and minimising error.

"This balance has not yet been reached. It is not for me to direct specific changes but I recommend that the department builds on current work to tackle the problem both in the short and long term."

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