1 Jul 2014

Public sector good, private sector bad, admits Tory Gov!

The DWP press release for the launch on 30 June 2014 of the new Child Maintenance Service, which is under the direct control of the government, includes the following:
The CSA – managed by an arm’s length body – spent around £503 million in 2009/10 to transfer only £1.1 billion of maintenance.Under the coalition government, the CSA spent £420 million in 2011/12 to transfer some £1.2 billion of maintenance. However, even with this saving, a continuing spend of over 35 pence to gain every £1 does not represent value for money.The IT system was totally inadequate and notoriously riddled with defects. Cases were regularly disappearing off the system.The number of expensively-managed clerical cases hit 100,000 and the IT system was costing £74 million a year in operating costs alone.The government is determined to sort out the mess and ensure today’s children get a better service than their predecessors.In 2012, we abolished the arm’s length body to give ministers more direct control, responsibility and accountability. [emphasis added]

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