Select Committee on Treasury Minutes of Evidence



Supplementary memorandum submitted by the Inland Revenue

 

1.  PERFORMANCE AGAINST 5 DAY TURNROUND TARGETS

The Sub-committee asked for performance figures for WFTC claims.

 

2000-01

2001-02

 
 

Target

Result

Target

Result

WFTC 5 day turnround

95%

84.4%

95%

85.1%

DPTC 5 day turnround

95%

87.0%

95%

87.5%

WFTC Accuracy

92%

92.4%

93%

87.1%

2.  WFTC TAKE-UP

The Sub-committee asked how the figure of 1.5 million for WFTC take-up had been arrived at.

  During the planning stages of WFTC, early estimates were made that up to 1.5 million families (later reduced to 1.4 million) might eventually benefit from WFTC. These figures were derived from household survey data, and were estimates of the potential number of recipients once the system reached "steady state", not the total number eligible. Take-up rates for WFTC on a basis consistent with those for Family Credit are not available until the results from the 2000-01 Family Resources Survey are analysed.

  The number of people benefiting from WFTC continues to rise. The latest statistics show that at February 2002 over 1.3 million families with children were receiving WFTC.

3.  CUSTOMER SERVICE TARGETS

The Sub-committee asked for performance against customer service targets over the period when the Customer Service Performance Indicator (CSPI) was changed.

  The Paymaster General explained to the Select Committee that the CSPI had been changed to take into account the new businesses taken on by the Revenue (eg NICs) and new customers (eg credit applicants), and that the new target incorporated this. The year 2001-02 became a benchmark year and the Revenue have a target of 2.5 index points improvement by 2003-04.

  The results of other key customer service targets over this period are:

CUSTOMER SERVICE—PERFORMANCE AGAINST TARGETS



1997-98%

 

1998-99%

 

1999-2000%

 

2000-01%

 

2001-02%

 

Target Area

Result

Target

Result

Target

Result

Target

Result

Target

Result

Target

Post

d/w in 28 days

d/w in 15 working days

74



75



80



75



84



80



84



80



83



80

Phone calls answered by switchboard

within 30 seconds

within 20 seconds



89



90



90



90



93



90



96



90



92



90

IREC Callers

Attended to within 15 minutes

97

94

97

94

98

95

99

95

98

95

4.  NATIONAL MINIMUM WAGE

The Sub-committee asked the Paymaster General to provide targets and outcomes for National Minimum Wage enforcement in the first three years, together with the targets for 2002-03.

  These are detailed in the tables below.

 

1999-2000

2000-01

2001-02

Enforcement Activity

     

Arrears of wages identified

1.25 million

3 million

5.1 million

Enforcement notices served

136

213

86

Penalty notices served

1

60

65

Employment Tribunal cases

12

26

27



1999-2000

 

2000-01

 

2001-02

 

2002-03

 
 

Forecast

Outcome

Forecast

Outcome

Forecast

Outcome

Forecast

Outcome

Enquiries

               

No of enquiries received

142,000

119,016

50,000

77,443

50,000

79,186

75,000

 

No of complaints received

7,500

3,844

2,000

1,823

2,000

1,722

1,750

 





1999-2000

 

2000-01

 

2001-02

 

2002-03

 
 

Target

Outcome

Target

Outcome

Target

Outcome

Target

Outcome

Compliance Cases

               

No of completed compliance cases

11,450

6,041

10,000

7,164

7,058

5,368

6,000

 

Incidence of non-compliance identified

Not
targeted

20%

50%

30%

50%

36%

35%

 

 

    —  The targets and forecasts are agreed annually with the Department of Trade and Industry.

    —  This is a new work area, which is still developing. Aspirational targets were agreed in the first three years to benchmark the scale of the problem. Fewer "complaints" than forecast were received from employees, particularly in the first year. But the Inland Revenue has been developing its ability to identify, from other sources, cases with risk. It was also found that the complexity of cases that had to be fully investigated increased over the period.

    —  The position has been reviewed at the three-year point, lessons having been learned from our experience. The Inland Revenue believes that the targets and forecasts proposed for 2002-03, which include a new measure for case quality, provide a realistic challenge. These are currently being finalised with DTI.

5.  VALUATION OFFICE AGENCY

The Sub-committee asked what proportion of appeals were upheld.

  At 31 March 2002, there had been appeals against 39 per cent of valuations in the 2000 rating list. Of these, 9 per cent have been settled without reduction, 6.5 per cent have been settled with reduction and 23.5 per cent remain to be settled.

Inland Revenue

July 2002

 


 
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Prepared 31 July 2002