The Universal Credit disaster was not a simple IT screw-up

The whole thing emerges with very little credit.

Today's NAO report into Universal Credit reveals an overambitious timetable, a lack of a detailed blueprint, inadequate supplier management, and confusion over what constitutes an agile approach.

The title for today's hard-hitting National Audit Office (NAO) report into Universal Credit is "early progress". "Progress" might be stretching things a bit far. After months of the Department for Work & Pensions (DWP) insisting that Universal Credit was still on track, the NAO report confirms that there really is no smoke without fire. The reports that were emerging about the state of the Universal Credit project really were true. And it really was that bad.

But unlike most "IT disaster" reports where vendors are routinely blamed for their failures, this report paints a different picture: one of weak programme management, over-optimistic timescales and a lack of openness about progress, not to mention some Whitehall friction between DWP and the Cabinet Office.

According to the NAO, DWP's programme for the national rollout of Universal Credit from October 2013, was "ambitious" given that the detailed policy would not be approved by Parliament until 2012. In fact, if it adopted its traditional "waterfall" approach to programme management - where systems are developed after policy is set - then rollout would be expected in 2015. But with October 2013 set in stone, that timetable itself created pressure on DWP to act quickly and meant that progress had to be managed tightly.

But instead of adopting its traditional waterfall approach, DWP chose to go with an "agile" plan, using the iterative and collaborative method of project management which has become popular and indeed has been recommended by the Cabinet Office for the development of public sector IT systems. But surely you wouldn't adopt such an approach for the first time on a critical project with an ambitious timescale? DWP did.

What was worse, in the NAO's view, throughout its development of Universal Credit, DWP has lacked a detailed view of how Universal Credit is meant to work. The NAO suggests that the department was warned repeatedly about its lack of a detailed "blueprint", "architecture" , or "target operating model" for Universal Credit and although throughout 2011 and the first half of 2012 it made some progress, the concerns were not addressed as expected.

By mid-2012, that meant that DWP could not agree what security would be needed to protect claimant transactions and was unclear about how Universal Credit would integrate with other programmes. That culminated in the Cabinet Office rejecting the department's proposed IT hardware and networks.

It is easy to imagine from that development how the Universal Credit team acquired what the NAO describes as a "fortress" mentality within the programme, and a "good news" reporting culture that limited open discussion of risks and stifled challenge because DWP had ring-fenced the Universal Credit team and allowed it to work with a large degree of independence.

As well as a lack of transparency and challenge, the Universal Credit team also had inadequate financial control over supplier spending - there was limited understanding of how spending related to progress and insufficient review of contract performance - and ineffective departmental oversight, which meant that DWP has never been able to measure its progress effectively against what it is trying to achieve. That has led to continual problems with governance, changed governance structures and during the "resetting" of Universal Credit in early 2013, the complete suspension of the programme board.

What all this means for the Universal Credit programme, the NAO says, is that DWP will have to scale back its original delivery ambition and reassess what it must do to roll out Universal Credit to claimants. That means revising the programme's timing and scope, particularly around online transactions and automation. That in turn means that Universal Credit will be more expensive and complex to administer than originally intended, while delays to rollout are likely to reduce the expected benefits of reform.

Although according to the project's leader Howard Shiplee, the Universal Credit team will be working together with the Government Digital Service to "take the best of the existing system and make improvements", the NAO suggests that DWP does not yet know to what extent its new IT systems will support national rollout. £34m worth of new IT assets - amounting to 17 per cent - have already been written off, and current pathfinder systems have limited function and do not allow claimants to change details of their circumstances online as originally intended.

The good news is that the problems of Universal Credit are belatedly beginning to come to light, which means they can start to be solved, even if that means the project's scope and timetable have to be changed, to project managers' and politicians' embarrassment.

They say the first part of getting help is to admit you have a problem, though I'm still not sure DWP has yet realised the extent of its Universal Credit addiction, and the treatment needed.

Its optimistic statement following the publication of the NAO report says, "We are committed to delivering it [Universal Credit] on time by 2017 and within budget.

"Under this new leadership we are making real progress and we have a plan in place that is achievable and safe. The NAO itself concludes that Universal Credit can go on to achieve considerable benefits for society."

This piece first appeared here

Ian Duncan Smith. Photograph: Getty Images

David Bicknell is the editor of Government Computing: www.governmentcomputing.com

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

***

Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.