Book Description

This is the third report in 3 years on the subject of administration in England of the £1.6 billion Single Payment Scheme by the Rural Payments Agency and the Department for Environment, Food and Rural Affairs (HCP 98, session 2009-10, ISBN 9780215542588), and follows an NAO report (HCP 880, session 2008-09, ISBN 9780102963182). The Committee states that oversight of the Single Payment Scheme is a singular example of comprehensively poor administration on a grand scale. With a paucity of good management information in the Agency and the complacent oversight by the Department having acted to obscure the true situation. A focus over the last two and a half years in bringing forward payments to farmers has enabled the Agency to bring its deadline forward by nearly seven weeks, but this is still six weeks off the deadline it had planned and a long way short of the standards set in Wales, Scotland and Northern Ireland. Also there has been a negligible attention to the protection of tax payers' interests. The Rural Payments Agency has spent £350 million on a cumbersome IT system that can only be supported at huge cost and which is increasingly at risk of becoming obsolete, with the data held in the system remaining riddled with errors and efforts to recover overpayments having been slow, disorganised and haphazard. The Committee identifies poor leadership within the Agency and a lack of attention by the Department. Each claim costs over six times more to process in England than in Scotland. Further the Department was not able to demonstrate an adequate grasp of the costs of administering the scheme. The Committee states that responsibility rests with the Accounting Officers to resolve this misadministration.