DfE consultancy spending rockets by 41 per cent in a year

Unions criticise millions spent on “expensive private consultants” while public sector workers face “unfair and unjust pay gap”
2nd August 2017, 3:47pm

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DfE consultancy spending rockets by 41 per cent in a year

https://www.tes.com/magazine/archive/dfe-consultancy-spending-rockets-41-cent-year
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The amount of money the Department for Education spent on consultants increased by 41 per cent in 2016-17, official figures reveal.

Latest departmental statistics also reveal that the number of people employed off-payroll for more than £220 per day for longer than six months tripled compared to the previous year.

They come in the DfE’s 2016-17 annual report, the DfE says that its consultancy expenditure in that year was £12.1 million - a 41 per cent increase on the £8.6 million it spent in 2015-16.

The figure included costs of £6 million related to non-departmental public bodies (NDPB), compared to £5.1 million in 2015-16.

The report states that the consultancy spend was “mainly used to support change programmes across the [DfE] group and specialist research contracted out to third parties”.

Tes asked the DfE for more detail on how this spending broke down, but was not given any additional figures.

The DfE told Tes the increase in spend was due to a “programme of one-off spends aimed at modernising the department” to meet “increased responsibilities” following “machinery of government changes”.

In July 2016 the DfE took over responsibilities for higher and further education, apprenticeships and adult skills which previously rested with the former Department for Business, Innovation and Skills.

However, teaching unions were critical of the increase in consultancy spending. The NASUWT said it showed that the government “preaches value for public money but does not practice it”.

General secretary Chris Keates said: “When the Conservatives took office as part of the coalition in 2010 they recklessly stripped out the jobs of thousands of public service workers, including civil servants.

“These figures show the consequence for the taxpayer of such a flawed strategy. Millions of pounds are being spent on expensive private consultants to plug the gaps once filled by dedicated public service workers.”

She added: “Questions need to be answered about why spending on consultants appears to have risen so rapidly when public service workers continue to be subjected to an unfair and unjust pay gap.”

Avis Gilmore, assistant general secretary of the NUT teaching union, said it was “astonishing” the government “appears to have a limitless pot to pay unaccountable management consultants” while school budgets were being “cut to the bone”.

“The £12.1million spent on consultants is a disgrace,” she added.

According to the annual report, spend on contractors to cover short term requirements such as unexpected absences, short term peaks in workload, projects and vacancies increased in 2016-17.

Expenditure on this “contingent labour” was £53.5 million, including NDPB costs of £14.4 million, compared to £31.4 million in 2015-16, including NDPB costs of £9.4 million.

The number of individuals employed off-payroll at the DfE also more than tripled.

At 23 March 2017, there were 593 “off-payroll engagements” for more than £220 per day that lasted for longer than six months.

At the same time in 2016, there were 193 such engagements. Tes asked the DfE what was behind the rise, but was not given an answer.

A DfE spokeswoman said: “All department spending is rigorously scrutinised according to strict rules to ensure we are providing value for money and are transparent in spending decisions. 

“We always seek to minimise spend on consultancy and temporary staff wherever possible. Every proposal for consultancy spend must meet Cabinet Office guidelines on business need and financial limits.”

 

 

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