Whitehall Monitor #7 Ifg Analysis of Civil Service Headcount Statistics
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Institute for Government analysis of civil service headcount statistics Whitehall Monitor #7 IfG analysis of civil service headcount statistics The Government has committed to reductions of a third in departmental administrative spending – with some departments targeting even higher figures. With efficiency savings unlikely to deliver this scale of savings, departments are also planning headcount reductions. In this edition of The Whitehall Monitor we look at the numbers that show how the reductions are beginning to be felt in across Whitehall. Headlines - Reductions have kicked off, starting at the top – new figures compiled by the Institute for Government show that departments have seen a 14.5% reduction in their top civil servants since last summer1. - The Office for National Statistics (ONS) civil service headcount numbers released on 15 June show these reductions are starting to feed through to lower grades, with an overall headcount reduction of 4.2% in Whitehall since the spending review. - To put this in context, there was a 2.4% reduction in employment across the UK from the pre-recession peak in 2008 to the mid-recession low in 2010.2 Justine Stephen, leading this research at the Institute for Government, said: “It is now clear that Whitehall is cutting from the top, with a sharp reduction in the most senior civil service jobs. And there are a host of redundancy schemes and restructurings taking place, which will be reflected in the coming months in falling headcounts at all grades. Reductions on this scale and pace are unprecedented – even in the early 1980s civil service numbers only dropped by 10%, which took four years to implement.” 1 Top civil servants – refers to Director General – Permanent Secretary grades. Comparison of data published summer/autumn 2010 by departments as part of the Transparency Agenda with information live on department’s websites about their current organisational structure, supplemented by specific enquiries. 2 Compares peak figures in Q2 2008 with lowest employment figures since the recession (Q1 2010). Source ONS Labour Force Survey. 1 Institute for Government analysis of civil service headcount statistics Analysis Reductions to top Civil Service numbers • Top civil service numbers fell by 14.5% since the spending review • This was a fall from 131 to 112 people, with the reduction reflecting posts which have now been abolished or merged • The largest drops in top Civil Service figures were in the Cabinet Office, Ministry of Justice (MoJ) and Department for Communities and Local Government (DCLG) Whole of Civil Service • Total Civil Service3 numbers decreased slightly between Q3 2010 and Q1 2011 (by 1.6% full time employees (FTE)4 or 7,550 FTE) • Excluding the figures for Census staff5, the whole of the Civil Service dropped by 3.1% FTE • As Figure 1 shows, this follows a slight downward trend from the peak in Q4 2009 Whitehall6 • After taking structural changes into account, the number of civil servants in core Whitehall departments decreased by 4.2% between Q3 2010 and Q1 2011, more than twice as fast as the overall civil service rate. • So far within Whitehall, the Department for Business, Information and Skills (BIS) has seen the largest FTE reduction (-360) representing a 9.6% FTE reduction since the spending review reflecting redundancy schemes run last year (see Figure 2 and Figure 3). There have also been substantial new reductions in the last quarter, with Department for Work and Pensions (DWP), Home Office, DCLG, Foreign and Commonwealth Office (FCO) and Department for Transport (DfT) reducing by over 200 FTE since the spending review. • Within Whitehall DCLG and DfT have both reduced by more than 10%, with BIS (-9.6%), Home Office (-9.4%) and the Treasury (HMT) (-8.8%) close behind. • The Department of Energy and Climate Change (DECC), Department of Health (DH) and Cabinet Office all saw small increases within their Whitehall figures. DECC increased the most in percentage terms, rising by 2.7% (or 30 FTE) since the spending review. Non-Whitehall Civil Service • The number of civil servants outside of the core Whitehall departments saw a proportionally smaller decrease since the spending review reducing by 1.6% or 6,770 FTE • However, if the Census staff are excluded, then the underlying figures non-Whitehall civil servants show a 3.3% reduction 3 Including core Whitehall departments & non-Whitehall Civil Service 4 FTE – Full Time Equivalent provides a measure based on the hours the employee is contracted to work (e.g. someone who works 2.5 days per week would be 0.5 FTE). We’ve used FTE rather than headcount figures as the latter does not differentiate between fulltime & part-time employees. 5 Listed as Census Field & GROS Census Field in the ONS data 6 We have defined ‘Whitehall’ using the core department figures (excluding separately defined agencies & arms length bodies) provided in the ONS data. The Welsh Assembly & Scottish Government have been excluded from the core Whitehall figures. The ONS data appears to include elements beyond the Whitehall office of the Ministry of Defence within their ‘Ministry of Defence’ figures. As a result the figures for ‘Ministry of Defence’ have been categorised as ‘Non-Whitehall Civil Service’. 2 Institute for Government analysis of civil service headcount statistics • Non-Whitehall Civil Service figures saw steep rises marked under HMT and the Scottish Government which can be attributed to the additions of 5,920 Census and 1,450 General Register Office for Scotland (GROS) Census staff since the spending review baseline. • In terms of non-Whitehall Civil Service, DWP have seen the biggest decrease in absolute terms (5,530 FTE reduction). (see Figure 4) Next steps The Institute for Government will continue to monitor the ONS quarterly headcount statistics – the next update will be in September 2011. 3 Institute for Government analysis of civil service headcount statistics Annex Table 1: Civil Service FTE headcounts by department Dept. Whitehall FTE Q1 2011 Non-Whitehall FTE Q1 2011 Total FTE Q1 2011 Attorney General’s Office (AGO) 40 8,900 8,940 Business, Innovation and Skills (BIS) 3,400 8,120 11,520 Cabinet Office (CO) 1,520 1,580 3,100 Dept of Communities and Local Government (DCLG) 2,250 1,950 4,200 Dept of Culture, Media and Sport (DCMS) 450 120 570 Dept of Energy and Climate Change (DECC) 1,150 - 1,150 Dept of the Environment and Rural Affairs (DEFRA) 2,530 6,880 9,410 Dept for Education (DfE) 2,660 1,620 4,280 Dept for International Development (DfID) 1,570 - 1,570 Dept for Transport (DfT) 1,860 15,810 17,670 Dept of Health (DH) 2,560 2,460 5,020 Dept of Work and Pensions (DWP) 11,890 97,700 109,590 Foreign and Commonwealth Office (FCO) 5,660 5,370 11,030 Government Equalities Office (GEO) 110 - 110 HM Treasury (HMT) 1,240 80,330 81,570 Home Office (HO) 2,780 24,600 27,380 Ministry of Defence (MoD) - 72,080 72,080 Ministry of Justice (MoJ) 4,510 73,700 78,210 Northern Ireland Office (NIO) 100 - 100 Scottish Government - 17,890 17,890 Welsh Assembly Government - 5,450 5,450 4 Institute for Government analysis of civil service headcount statistics Figure 1: Civil Service FTE figures by quarter – including structural changes Total civil service FTE figures have seen a small decline (- 1.6%) since the spending review baseline (Q3 2010). Whilst the figures show that the Core Whitehall total went up slightly since the baseline, this includes structural changes brining in 1269 staff from NOMS from the No-Whitehall figures into the core department total. Civil service FTE figures, shown by core 'Whitehall' department & Non-Whitehall Civil Service 600000 500000 400000 300000 200000 100000 0 2009 Q1 FTE 2009 Q2 FTE 2009 Q3 FTE 2009 Q4 FTE 2010 Q1 FTE 2010 Q2 FTE 2010 Q3 FTE 2010 Q4 FTE 2011 Q1 FTE Non-Whitehall Civil Service 442740 445780 451160 450660 445430 439880 431330 422860 424560 Core Whitehall Depts. 46060 46830 46950 47110 46900 47720 47060 47370 46280 5 Institute for Government analysis of civil service headcount statistics Figure 2: Whitehall core department FTE change from baseline Looking at absolute FTE reductions from the core departments, BIS, DWP, Home Office and DCLG all stand out as the biggest reductions. In contrast Cabinet Office, DH and DECC have all seen small increases to their core departments Change in Q1 2011 from adjusted Q3 2010 baseline - Core Whitehall [FTE] 50 0 -50 -100 -150 -200 -250 -300 -350 -400 AGO BIS CO DCLG DCMS DECC DEFRA DfE DfID DfT DH DWP FCO GEO HMT HO MoJ NIO FTE -10 -360 20 -270 -10 30 -60 -140 -30 -210 20 -310 -240 0 -120 -290 -59 -10 Notes: a) Q3 2010 baseline is adjusted to take account of structural [MoG] changes that have occured since then 6 Institute for Government analysis of civil service headcount statistics Figure 3: Whitehall core department FTE % change from baseline In terms of the % change, DCLG and DfT are leading with cuts of over 10% since the spending review. Overall, core Whitehall numbers have reduced by 4.2% Change in Q1 2011 from adjusted Q3 2010 baseline - Core Whitehall [%] 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% All AGO BIS CO DCLG DCMS DECC DEFRA DfE DfID DfT DH DWP FCO GEO HMT HO MoJ NIO Depts. % change -9.6% 1.3% -10.7% -2.2% 2.7% -2.3% -5.0% -1.9% -10.1% 0.8% -2.5% -4.1% -8.8% -9.4% -1.3% -4.2% Notes: a) Q3 2010 baseline is adjusted to take account of structural [MoG] changes that have occured since then b)Departments below a threshold of 400 FTE in Q4 2010 are shown as 0% change [AGO, GEO, NIO].