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DWP Government Major Project Portfolio data, September 2016 (CSV)

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Project Name ADMS Automatic Enrolment Programme DWP People and Locations Programme Fraud, Error and Debt Programme Universal Credit Programme Work and Health Programme Hosting
IPA Delivery Confidence Assessment (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) Amber Amber Amber/Red Amber/Green Amber Amber Amber
Description / Aims ADMS Transformation will transition the full Application Development, Maintenance and Support (ADMS) services currently provided by Hewlett Packard Enterprises (HPE) in a controlled manner along with establishing a new Resourcing Framework and establishing access to all the relevant development and test tooling, software and processes. Underpinning this business change will be the insourcing of appropriate HPE staff into a new DWP GovCo organisation enabling a flexible and agile resource pool. The Automatic Enrolment Programme was established to implement the Government’s workplace pension reforms. The overarching aim of the reforms is to get more people saving more for their retirement. The Programme went live in October 2012, delivering: 1) Automatic enrolment - a new duty on employers to automatically enrol their eligible workers into a qualifying workplace pension scheme; and to increase the incentive to remain saving in a pension scheme, there is a mandatory employer contribution. 2) The National Employment Savings Trust – which has a public service obligation to accept any employer who wishes to use it to meet their employer duty. It provides a good quality pension to individuals on low to moderate earnings. 3) An employer compliance regime - run by the Pension Regulator to support these measures. The implementation approach is gradual, with employers being 'staged' by size, over the period October 2012 to February 2018; and contributions to pension schemes are being gradually increased over time to provide a period of adjustment for employers and individuals, with full contributions being paid from April 2019. Once fully implemented the Department expects to see around 10 million people newly saving or saving more into a workplace pension, and an increase in pension saving of around £17 billion a year. Designing and delivering a blueprint of our people; teams and locations in 2018 and beyond while optimising the space we use, as we exit the current estates PRIME contract and take on new contractual arrangements from April 2018. The Fraud, Error and Debt Programme (FEDP) has evolved, growing into a package of both long term transformational projects and short term initiatives, at various stages of development and delivery. Operating like a portfolio, projects roll on and off the programme over its lifetime, with many earlier projects now delivered and operational. Throughout, the Programme has remained focussed on delivering the outcomes designed to ensure the Department manages fraud, error and debt in a systematic way – from initial referral, through risk management, to interventions and debt recovery – supported by appropriate campaigns and penalties. The Programme is part of a wider Fraud, Error and Debt Strategy which encompasses components of other programmes such as Universal Credit (UC). The key objectives are: • to continue to optimise the use of HMRC’s earnings, employment and pensions data for income-related benefits, sharing details with the wider Department where there is a need to use this data, including working with local authorities on Housing Benefit • to work with DWP Fraud and Error Service to transform the management of fraud, error and debt referrals, improving business processes and provide members of the public with a user–friendly and confidential service to report benefit fraud online; • to have a debt and deduction recovery solution in place enabling existing cases of DWP, HMRC, Social Fund and local authority debt and other additional third party deductions to be recovered on migration to Universal Credit (UC); • to work with Debt Management (DM) to deliver a transformational, multi-channel DWP DM service, that encourages customers to self–serve in the repayment of their debt; and • to continue to support Local Authorities to reduce fraud and error by undertaking additional activity to detect and correct Housing Benefit fraud and error. Universal Credit replaces six separate benefits and tax credits for working age people, bringing together in and out of work systems into one, to make work pay. When fully rolled out it is expected that up to 7 million households will benefit from Universal Credit. Legislated for in 2012-13, it has now entered implementation phase. The Work and Health Programme (WHP) project will design, procure and implement a new contracted employment provision that from November 2017 will aim to transform the lives of people with disabilities, jobseekers who reach two years unemployment and people with particular barriers to finding employment. The Department currently provides contracted employment support to jobseekers in, or at risk of, long term unemployment, and people with disabilities through the Work Programme and Work Choice. Referrals to the Work Programme will end at the end of March 2017 and referrals to Work Choice will end during 2017/18. There is more to do to meet the Government’s employment objectives, particularly to address the employment gap between disabled and non-disabled people, and meet the ambition in the joint DWP and Department of Health ‘Improving Lives; the Work, Health and Disability’ Green Paper. The Work and Health Programme will provide distinct, additional and more intensive support than Jobcentre Plus can offer, delivering sustained employment outcomes. The programme will support: • People with a disability, referred to the programme by their Work Coach at the most appropriate time on a targeted, voluntary basis subject to them meeting specific criteria. It is envisaged that most referrals will be between three and twelve months into their benefit claim, where such a claim exists. The essential criteria are that the individual has volunteered to participate in the programme, they have signed up to the objective of finding work in the next 12 months and will benefit from the increased and more intensive personalised and integrated support that the WHP will provide; • Claimants who are in the intensive work search regime or claiming Jobseeker’s Allowance, will be mandated to WHP upon reaching 24 months of their claim if they meet the specified referral criteria. This group may include some claimants with a heath condition or disability who have not volunteered up until that point; and • An Early Access group, including ex-offenders, carers on JSA, ex-carers, ex-HM Armed Forces and partners, care leavers, 18-24 Benefit Cap customers, drug/alcohol dependents. The Work and Health Programme will be introduced between November 2017 and February 2018 as part of a managed geographical roll out. DWP’s critical applications are hosted by Hewlett Packard Enterprise (HPE) under the Standard Services Business Allocation (SSBA) Hosting Services contract. The Hosting Services Refresh Programme has been established to: deliver resilient data centre facilities; deliver a modern flexible cloud hosting environment; undertake the on-going refresh of DWP’s ageing infrastructure assets; transition from the current SSBA Hosting Services contract to flexible delivery arrangements, which will be used for the on-going business as usual technology refresh. In exiting the SSBA Hosting Services contract, the Department will take over responsibility for the operation of the technology infrastructure and services through providers. The refresh and migration of Hosting Services will deliver both the DWP Data Centre facilities via government’s Crown Hosting Service (CHS), and the platform services to enable the transition of the Department’s critical ageing application infrastructure to new fully supported modern infrastructure and services.
Departmental commentary on actions planned or taken on the IPA RAG rating. De-Risking the go live of the first two waves allowed time to complete the establishment of Benefits Pension Digital and Technology (BPDTS) Limited (DWP GovCo Organisation), procure associated services and further consultation with Hewlett Packard Enterprise (HPE) transferees to be undertaken. The first two waves will transition on 1st December 2016 into BPDTS Limited and waves 3-5 on 24th March 2017. Programme implementation has been successful, with people automatically enrolled, high levels of compliance amongst employers and opt-out rates amongst individuals remaining low at around 9%. The Programme is now focusing upon supporting individuals and employers as we implement increases in pension contributions, and to support the large numbers of small and micros employers who will undertake their duties through 2017 and beyond. There remains a level of uncertainty around how employers and individuals will behave. Balancing Programme successes to date against these remaining challenges, the Programme Board has rated the Programme as Amber. All recommendations from the IPA Project Assessment Reviews (PARs) and Major Projects Review Group (MPRG) prior to October 2016 have been completed/actioned. The 4 IPA recommendations from the October 2016 review are being actively managed, with action managers appointed for each one. The recommendations were: • A detailed plan, covering for example, legal, IT, commercial, HR and core business readiness requirements, including all dependencies, is produced and that the end to end programme critical path is created using this level of detail. On-going • Individual "customer user briefs" (some of which already exist) are defined for each building. These should capture the individual action for each building, in line with customer needs. The aggregation of these should be understood and linked to the overall plan. Cleared • The formal sign-off of lease agreements needs to be completed at the optimum time and recognising value for money objectives. The PLP needs to ensure that, using appropriate management information, explicit decisions are made on the basis of trade-offs between the time available and the achievement of value for money. On-going • The PLP needs to de-risk the delivery of the procurement of the Estates Target Operating Model (ETOM). It should produce both a detailed procurement plan and TT exit strategy and develop a critical path. Working with partners, the PLP needs to identify and remove current significant barriers to progress by securing early additional resources and simplifying the procurement process. The PLP should ensure that appropriate contingencies are introduced and managed. On-going Three of the four recommendations will be closed by the end of Q4 2016, with the final one expected to be cleared by end of Q1 2017. An IPA review in February 2016 recognised the Programme had a good track record of delivering complex projects and initiatives. Following the review the Programme: • continues to ensure its long term plan is aligned to the Fraud, Error and Debt strategy, focussing on ensuring delivery of savings from welfare reform and targeting the major known areas of loss; • ensures alignment between FED Programme initiatives and the UC Programme, via formal representation and governance routes. The delivery confidence assessment awarded at the Infrastructure and Projects Authority (IPA) Health Check Review in September 2016 reflects the continued progress the Programme has made since the previous Amber rating given at the IPA review in October 2015. In awarding the delivery confidence assessment the IPA acknowledged: • Live Service for Singles has been rolled out nationally • There is early evidence that policy outcomes are being delivered • The revised Plan is supported by all stakeholders • The Plan is stretching, but manageable, with contingency built in • Governance structures are comprehensive and fit for purpose • There is a strong and effective SRO • The full range of stakeholders are positively engaged • The relationship with Delivery Partner HMRC is working well • Operations are confident that they can deliver the required capacity and capability • Planning for Migration has commenced The latest IPA Health Check proposed a total of nine recommendations which primarily focus on • Automation and Full Service capability • A stable, high performing and resilient IT system • Operational MI hierarchy sufficient to drive the business • A workable ID assurance solution All have been accepted by the Programme, and action owners have been assigned and implementation action plans drawn up and are on track. All recommendations and action plans will be subject to regular monitoring and independent scrutiny to ensure all necessary action is being taken to address and close the recommendations at the earliest opportunity. In response to 5 IPA recommendations, WHP project: • Has restructured its senior organisation to better align the Communications and Business Change activity going forward. • Has refreshed the overarching suite of engagement and communications products for use both within and beyond DWP. • Has developed and agreed contingency plans should delays in reaching agreement with Tier 1 authorities occur • Is working with DWP Change Resource Pool and Expert Domains to ensure that the right resources are in place to support programme delivery. • Continues work to ensure that detailed “point to point” risk management receives appropriate focus. • Has held a series of individual planning sessions with Senior Strand Leads to further develop plans and drive out additional detail. This will be brought together into an Integrated Plan to be agreed by Programme Board. The Programme has made good progress during 2016/17, with management focus on key activity to ensure the Programme continues on track. Build activity has completed in the Data Centres. Close management attention is focused on the on-going Business as Usual refresh activities to migrate services.
Project - Start Date (Latest approved start date) 01/03/2016 01/05/2007 19/11/2015 02/04/2012 17/11/2011 01/12/2015 30/03/2016
Project - End Date (Latest approved end date) 31/03/2017 30/11/2018 27/04/2018 31/03/2017 30/06/2022 31/03/2018 08/02/2018
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The first two waves will transition on 1st December 2016 into BPDTS Limited and waves 3-5 on 24th March 2017. The Programme went live on time. The implementation approach has been designed to accommodate the significant increase in volumes over the 2015-2018 period. The Programme is on track to deliver to timetable. The programme remains focussed on successful delivery of an optimal estate for DWP’s future business whilst protecting customer service, protecting welfare reform, minimising the impact on our people and delivering cost efficiencies. The programme remains on track with significant preparatory activity having been undertaken in Q2/Q3. The list of sites for delivery within the scope of the programme will be formally locked down on 23 December 2016; and notice to Telereal Trillium (TT) due to be served on 26 January 2017. There has been positive progress securing Heads of Terms (HoTs) for those properties that DWP requires to maintain service delivery in 2018. The TT freehold property deal is scheduled to receive Cabinet Office approval in December 2016. The programme will continuously review plans and future communications. Human Resources have undertaken extensive work to assist the programme and are ready to support the business throughout implementation. At Quarter 2 2016-17 the Programme: • successfully delivered further major components of the debt and deduction recovery solution (Social Fund and Local Authority elements delivered August 2016) via a series of interfaces, enabling existing cases of DWP, Social Fund and local authority debt to be recovered on migration to Universal Credit (UC); • Is investigating options to exploit the Wider Use of RTI service. Following the early success and potential to reduce fraud and error, the project continues with Pension Centre roll-out and is preparing to test the service with a few Local Authorities. • Is developing a solution focusing on the transformation of the management of fraud and error solutions by testing a preferred product. Delivery remains on track. We have approval of the UC Outline Business Case and funding drawdown through to September 2017 and are currently working on the Full Business Case due in the Autumn. We are now implementing the revised roll-out plan, announced in July 2016, enabling the programme to deliver the Summer Budget changes to the required timetable. In November 2016 the programme will announce the final phase in the roll-out of the full service. The programme will continue its gradual, safe and secure delivery approach of rolling out 5 jobcentres per month through to June 2017, building up to 30 jobcentres in July 2017 then scaling up from October 2017 and completing rollout in September 2018. The migration of claimants from legacy benefits will commence in July 2019 and complete in March 2022. Universal Credit is now available in every Jobcentre and Local Authority across Great Britain and commenced Transition to the full Universal Credit service for all claimant types as planned in May 2016. From December 2016, 44 jobcentre areas will deliver the full service. The programme is currently planning for the scaling up in July and October. All Critical Milestones continue to be delivered on time.? All key milestones are scheduled into the Programme Plan. The Next Stage Plan has been developed and is being validated through Programme Steering Group. The Programme has successfully passed through Preliminary Design Review Gate and confirmed the commercial timeline for the next stage, commencing with the Invitation to Tender being published w/c 23rd January 2017 in line with plans. The programme is has delivered the first 2 cycles of refresh: • Customer Information Systems remediation; and • Core infrastructure build.
2016/17 TOTAL Baseline £m (including Non-Government costs) £168.62 £101.90 £91.29 £110.80 £534.88 £14.00 £287.97
2016/17 TOTAL Forecast £m (including Non-Government costs) £168.62 £67.80 £45.93 £83.00 £496.65 £3.88 £241.39
2016/2017 Variance %age 0% -34% -50% -25% -7% -72% -16%
Whole Life Cost TOTAL Baseline £m (including Non-Government costs) £602.86 £995.40 £5,560.67 £821.90 £13,573.69 £401.00 £1,187.67
Departmental narrative on budget/forecast variance for 2016/17 (if variance is more than 5%) Budget varience less than 5%. The proportion of employers complying has been higher than expected so the costs of ensuring compliance have been lower than budgeted. The variance reflects deferral of the delivery schedule which has reduced expenditure in year. There is also a reduction in the capital forecast (which is a key part of this programme) comprising two elements: the correction of a categorisation error; and the remainder linked to the impacts of delivery and implementation schedule changes. The variance in forecast against the baseline is attributable both to costs being incurred in the prior year (2015-16) and to reductions in costs and changes in the timing of a number of initiatives: • Some Fraud and Error Reduction Initiative Scheme 2 (FERIS 2) costs were incurred in the prior year; and • A reduction in costs and changes in the timing of Fraud and Error Service Work Management (FES WM) and Digital Debt Management Services (DDMS) projects. Forecast spend in 2016/17 is below budget primarily due to lower estimates of IT and operational resource costs following revisions to roll out schedules for the Full Service The initial programme forecast included £10m for IT which has subsequently been reduced to £3m and will now be incurred in 2017-18. The IT funding was released as soon as it became apparent it was not required in 2016/17 The programme has driven out efficiencies through design and commercial negotiation. It has achieved an in year reduction while remaining on track to deliver by key dates.
Departmental Narrative on Budgeted Whole Life Costs Budgeted whole life costs include investment costs and capital costs (software and hardware) associated with transition, as well as the costs of resources and running costs required to deliver the ADMS services going forward. Budgeted whole life costs above are based on the latest ADMS business case and remain unchanged. The whole life costs cover the period from 2007-08 to 2017-18 and includes the set-up and running costs of the compliance regime within The Pensions Regulator (TPR); the communications costs for raising awareness through a series of campaigns; and Programme costs. The explanation above has the same impact on budgeted whole life costs. There is no overall change in whole life costs for the programme as the same activity must be performed (at same cost) but in a shorter/diminishing timescale. The whole life costs include both the implementation costs of the Programme - including a number of individual Projects that have been delivered to date - together with the on-going recurring costs of projects responsibility of which has now, or will be, transferred to operational areas. The budgeted whole life cost figure reflects the Outline Business Case as approved by HMT in December 2015 and excludes the impact of savings expected to be delivered by the Programme. The initial £401m is based on SR15 settlement only and will be reviewed when the Outline Business Case is developed. Whole life costs include those costs incurred under existing contracts during the transition to new arrangements.
ID Numbers DWP_0025_1516-Q4 DWP_0005_1112-Q1 DWP_0024_1516-Q3 DWP_0016_1213-Q2 DWP_0009_1112-Q1 DWP_0027_1617-Q2 DWP_0026_1516-Q4
Annual Report Category ICT Government Transformation and Service Delivery Government Transformation and Service Delivery Government Transformation and Service Delivery Government Transformation and Service Delivery Government Transformation and Service Delivery ICT