Workplace Transformation Programme Accounting Officer Assessment (January 2023)
Updated 21 March 2024
Applies to England, Scotland and Wales
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It is normal practice for accounting officers to scrutinise significant policy proposals or plans to start or vary major projects, and then assess whether they measure up to the standards set out in Managing Public Money. From April 2017, the government has committed to making a summary of the key points from these assessments available to Parliament where it involves a project within the Government’s Major Projects Portfolio.
This Accounting Officer Assessment considers the Workplace Transformation Programme which the Department for Work and Pensions launched in 2021.
1. Background
The Workplace Transformation Programme, that formally started in 2021, is a ten-year programme which will reshape how, when and where the Department’s people will work, resulting in the delivery of an estate that is ‘smaller, better, and greener,’ in line with Government’s aspirations for its core public estate. This will support the ongoing service modernisation and transformation work, while driving for efficiency with the implementation of a flexible workplace. The programme provides an opportunity to remove underutilised space whilst creating an estate that meets the Department’s strategic needs.
Organisational, cultural, digital and estate changes will alter how the Department’s people interact with their workplace. The implementation of more flexible ways of working, as Smarter Working is embedded and PAS3000 standards achieved, will improve the lives of the Department’s people. The estate design, footprint and location will result in fewer, better-quality buildings, supporting Places for Growth and the Levelling Up agenda. Investment in the condition and future sustainability of the estate will support the Greening Government commitments and Net Zero Carbon Targets. The Department occupies 20% of the Government’s civil estate and as such is the fourth largest producer of greenhouse gasses within Government.
2. Assessment against Accounting Officer Standards
2.1 Regularity
As the programme does not require any primary or secondary legislation to deliver its objectives, and with HMT approval for the Programme Business Case (PBC) obtained, subject to HMT continuing to provide funding as set out in the approved Business Case beyond the SR21 period, the regularity test is met.
2.2 Propriety
Considering the expectations of the public and Parliament, and by making best use of commercial options to manage costs, the propriety test is met.
2.3 Value for Money
As outlined in its March 2022 Programme Business Case (PBC) the Workplace Transformation Programme delivers Value for Money (VfM) with an overall investment of £693 million delivering £2,378 million of savings over the 30 years of the Business Case – a positive Net Present Value, after discounting, of £776 million.
The programme faces risks that all long-term capital investments endure due to macro environment changes. However, there is significant headroom in Programme Net Present Value for these changes to be mitigated and absorbed.
On the basis of the positive Net Present Value, the value for money test is met.
2.4 Feasibility
As with most major programmes, this programme is carrying a number of risks, primarily around supplier capacity and inflation.
The risk of insufficient supplier capacity due to high demand in the construction industry is mitigated through the use of multiple suppliers. Supplier capacity will continue to be monitored by the programme to ensure that early warning signs are identified and acted upon.
The programme also faces an inflationary risk given rising costs within the construction industry. Mitigation includes close monitoring to ensure that planned works continue to demonstrate value for money.
With planned mitigation, the feasibility test is met.
3. Conclusion
In conclusion I have prepared this summary to set out the key points which informed my decision.
My overall assessment is that the Workplace Transformation Programme continues to meet the requirements of the 4 accounting officer tests of regularity, propriety, value for money and feasibility.
If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised summary, setting out my assessment of those factors.
This summary will be published on the government’s website GOV.UK. Copies will be deposited in the library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.
Peter Schofield
Permanent Secretary