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The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, what his Department’s policy is on using debt collection agencies for collection of outstanding payments.

Justin Tomlinson

The Department’s policy is to recover outstanding debt whenever possible. Where a person is not in receipt of benefit and all the Department’s attempts at recovery have been unsuccessful, the overpayment will be referred to a debt collection agency. The debtor is always given an opportunity to make an agreement to pay the Department before the debt is sent to a debt collection agency to recover.

With the exception of one service provider currently being used by the Child Maintenance Group, the Department does not hold extant, direct contracts with any debt collection agencies although the nature of some of the expired contracts means that a number of collections are still being made. DWP now makes use of one main contract with Indesser. The Framework Contract is managed by Cabinet Office. Indesser manage relationships with a number of Debt Collection Agencies on behalf of all Government Customers.

Under the terms of the Framework Agreement, Indesser and its sub-contractors must comply with relevant industry and public sector standards for service delivery including those of the Credit Services Association, the Code of Practice and the Financial Conduct Authority guidelines. The standards are listed in the DMI Framework Agreement. Indesser reviews subcontractor compliance with these standards through audit and assurance activity, including responsibility for ensuring that they comply with relevant industry standards, managing their performance, and monitoring any complaints. Customer departments (i.e. DWP) in turn receive Letters of Assurance which they review to ensure standards are being achieved and the audits are effective.

The breakdown of figures you have requested is derived from operational processes and systems designed solely for the purpose of helping the Department to manage its business. As it was not originally intended for publication, it has not been subjected to the rigorous quality assurance checks applied to our published official statistics.

The debt collection agency costs of the Child Maintenance Group and DWP are given separately. Please note that the figures are rounded to the nearest £10,000.

The cost to the DWP of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.59m	£8.50m
2010/2011	£1.33m	£9.77m
2011/2012	£2.11m	£13.94m
2012/2013	£1.95m	£14.15m
2013/2014	£2.12m	£15.00m
2014/2015	£2.52m	£17.30m
2015/2016*	£1.64m	£11.05m
*to date

The cost to Child Maintenance Group of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.25m	£10.20m
2010/2011	£0.56m	£4.68m
2011/2012	£0.35m	£1.35m
2012/2013	£0.21m	£1.71m
2013/2014	£0.05m	£1.21m
2014/2015	£0.10m	£0.86m
2015/2016 to date	£0.07m	£0.53m

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, how his Department regulates the activities of debt collection agencies during the period that they are under contract with his Department.

Justin Tomlinson

The Department’s policy is to recover outstanding debt whenever possible. Where a person is not in receipt of benefit and all the Department’s attempts at recovery have been unsuccessful, the overpayment will be referred to a debt collection agency. The debtor is always given an opportunity to make an agreement to pay the Department before the debt is sent to a debt collection agency to recover.

With the exception of one service provider currently being used by the Child Maintenance Group, the Department does not hold extant, direct contracts with any debt collection agencies although the nature of some of the expired contracts means that a number of collections are still being made. DWP now makes use of one main contract with Indesser. The Framework Contract is managed by Cabinet Office. Indesser manage relationships with a number of Debt Collection Agencies on behalf of all Government Customers.

Under the terms of the Framework Agreement, Indesser and its sub-contractors must comply with relevant industry and public sector standards for service delivery including those of the Credit Services Association, the Code of Practice and the Financial Conduct Authority guidelines. The standards are listed in the DMI Framework Agreement. Indesser reviews subcontractor compliance with these standards through audit and assurance activity, including responsibility for ensuring that they comply with relevant industry standards, managing their performance, and monitoring any complaints. Customer departments (i.e. DWP) in turn receive Letters of Assurance which they review to ensure standards are being achieved and the audits are effective.

The breakdown of figures you have requested is derived from operational processes and systems designed solely for the purpose of helping the Department to manage its business. As it was not originally intended for publication, it has not been subjected to the rigorous quality assurance checks applied to our published official statistics.

The debt collection agency costs of the Child Maintenance Group and DWP are given separately. Please note that the figures are rounded to the nearest £10,000.

The cost to the DWP of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.59m	£8.50m
2010/2011	£1.33m	£9.77m
2011/2012	£2.11m	£13.94m
2012/2013	£1.95m	£14.15m
2013/2014	£2.12m	£15.00m
2014/2015	£2.52m	£17.30m
2015/2016*	£1.64m	£11.05m
*to date

The cost to Child Maintenance Group of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.25m	£10.20m
2010/2011	£0.56m	£4.68m
2011/2012	£0.35m	£1.35m
2012/2013	£0.21m	£1.71m
2013/2014	£0.05m	£1.21m
2014/2015	£0.10m	£0.86m
2015/2016 to date	£0.07m	£0.53m

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, with how many debt collection agencies his Department has a contract.

Justin Tomlinson

The Department’s policy is to recover outstanding debt whenever possible. Where a person is not in receipt of benefit and all the Department’s attempts at recovery have been unsuccessful, the overpayment will be referred to a debt collection agency. The debtor is always given an opportunity to make an agreement to pay the Department before the debt is sent to a debt collection agency to recover.

With the exception of one service provider currently being used by the Child Maintenance Group, the Department does not hold extant, direct contracts with any debt collection agencies although the nature of some of the expired contracts means that a number of collections are still being made. DWP now makes use of one main contract with Indesser. The Framework Contract is managed by Cabinet Office. Indesser manage relationships with a number of Debt Collection Agencies on behalf of all Government Customers.

Under the terms of the Framework Agreement, Indesser and its sub-contractors must comply with relevant industry and public sector standards for service delivery including those of the Credit Services Association, the Code of Practice and the Financial Conduct Authority guidelines. The standards are listed in the DMI Framework Agreement. Indesser reviews subcontractor compliance with these standards through audit and assurance activity, including responsibility for ensuring that they comply with relevant industry standards, managing their performance, and monitoring any complaints. Customer departments (i.e. DWP) in turn receive Letters of Assurance which they review to ensure standards are being achieved and the audits are effective.

The breakdown of figures you have requested is derived from operational processes and systems designed solely for the purpose of helping the Department to manage its business. As it was not originally intended for publication, it has not been subjected to the rigorous quality assurance checks applied to our published official statistics.

The debt collection agency costs of the Child Maintenance Group and DWP are given separately. Please note that the figures are rounded to the nearest £10,000.

The cost to the DWP of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.59m	£8.50m
2010/2011	£1.33m	£9.77m
2011/2012	£2.11m	£13.94m
2012/2013	£1.95m	£14.15m
2013/2014	£2.12m	£15.00m
2014/2015	£2.52m	£17.30m
2015/2016*	£1.64m	£11.05m
*to date

The cost to Child Maintenance Group of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.25m	£10.20m
2010/2011	£0.56m	£4.68m
2011/2012	£0.35m	£1.35m
2012/2013	£0.21m	£1.71m
2013/2014	£0.05m	£1.21m
2014/2015	£0.10m	£0.86m
2015/2016 to date	£0.07m	£0.53m

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, how much his Department has spent on using debt collection agencies in each of the last seven years.

Justin Tomlinson

The Department’s policy is to recover outstanding debt whenever possible. Where a person is not in receipt of benefit and all the Department’s attempts at recovery have been unsuccessful, the overpayment will be referred to a debt collection agency. The debtor is always given an opportunity to make an agreement to pay the Department before the debt is sent to a debt collection agency to recover.

With the exception of one service provider currently being used by the Child Maintenance Group, the Department does not hold extant, direct contracts with any debt collection agencies although the nature of some of the expired contracts means that a number of collections are still being made. DWP now makes use of one main contract with Indesser. The Framework Contract is managed by Cabinet Office. Indesser manage relationships with a number of Debt Collection Agencies on behalf of all Government Customers.

Under the terms of the Framework Agreement, Indesser and its sub-contractors must comply with relevant industry and public sector standards for service delivery including those of the Credit Services Association, the Code of Practice and the Financial Conduct Authority guidelines. The standards are listed in the DMI Framework Agreement. Indesser reviews subcontractor compliance with these standards through audit and assurance activity, including responsibility for ensuring that they comply with relevant industry standards, managing their performance, and monitoring any complaints. Customer departments (i.e. DWP) in turn receive Letters of Assurance which they review to ensure standards are being achieved and the audits are effective.

The breakdown of figures you have requested is derived from operational processes and systems designed solely for the purpose of helping the Department to manage its business. As it was not originally intended for publication, it has not been subjected to the rigorous quality assurance checks applied to our published official statistics.

The debt collection agency costs of the Child Maintenance Group and DWP are given separately. Please note that the figures are rounded to the nearest £10,000.

The cost to the DWP of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.59m	£8.50m
2010/2011	£1.33m	£9.77m
2011/2012	£2.11m	£13.94m
2012/2013	£1.95m	£14.15m
2013/2014	£2.12m	£15.00m
2014/2015	£2.52m	£17.30m
2015/2016*	£1.64m	£11.05m
*to date

The cost to Child Maintenance Group of the debt collection agencies, and the related recovery made by them, is as follows:

Financial Year	Spend	Recoveries
2009/2010	£1.25m	£10.20m
2010/2011	£0.56m	£4.68m
2011/2012	£0.35m	£1.35m
2012/2013	£0.21m	£1.71m
2013/2014	£0.05m	£1.21m
2014/2015	£0.10m	£0.86m
2015/2016 to date	£0.07m	£0.53m

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, how many National Enterprise Allowance advisers are employed as part of that scheme.

Priti Patel

The NEA is delivered by contracted providers who use a combination of paid and volunteer mentors to deliver business mentoring support. The exact number of mentors used by providers is not known.

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, how many people have applied to the National Enterprise Allowance scheme in each of the last five years.

Priti Patel

Claimants who are interested in participating in the New Enterprise Allowance (NEA) are referred by their work coach to a provider so that they can explore the self-employment options. Participation is voluntary.

The take up of the NEA is closely linked to the number of people claiming Jobseeker’s Allowance, which begun to drop in 2013 – 2014. It is also worth noting that during 2013 the Department ran a high profile marketing campaign to promote the NEA, using posters & leaflets in jobcentres, YouTube videos, Webinars etc. which may also have influenced take up of the scheme in that year.

The table below shows how many starts there were with a business mentor in each financial year.

NEA mentor starts by financial year (1)	Number (2,3)
April 2011 – March 2012	15,170
April 2012 – March 2013	31,880
April 2013 – March 2014	47,800
April 2014 – March 2015	39,830
April 2015 – September 2015 (six months)	18,200

(1) Data Source – DWP LMS opportunities evaluation database October 2015 for all quarters, DWP PRaP database October 2015 for Jan-Sept 2015.

(2) Figures are rounded to the nearest 10.

(3) It is possible that an individual may start to work with a mentor more than once and therefore appear more than once in these figures.

The below Parliamentary question was asked by Gavin Newlands on 2016-02-04.

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the effectiveness of the new Enterprise Allowance scheme.

Priti Patel

Latest statistics show that 76,960 new businesses have been set up with the support of the New Enterprise Allowance (NEA).

A cohort study of the initial participants in the scheme showed that 78% of the first 2,960 NEA participants who started to trade remained off benefits for 52 weeks.

In January 2016 we published an evaluation report which showed that business established with the support of NEA had a sustainability rate of 80%, with over 90% of these trading for over 12 months. Around half of the respondents to the survey reported an expansion in their customer base or an increase in turnover. The majority of respondents were planning to expand their business in the future.