The Department for Work and Pensions (DWP) is facing intense parliamentary scrutiny over significant proposed changes to how it shares claimant data with local authorities across England. The Work and Pensions Committee has been rigorously questioning DWP officials about these planned legal modifications, which could substantially expand the flow of information between central government and local councils.
Strategic Authorities and Data Sharing Framework
The proposed changes come as the DWP collaborates with local councils to establish Strategic Authorities in every region of England. These new bodies will have responsibility for governing crucial areas including housing provision, skills development, and employment support programmes. The legislative framework being developed creates specific gateways for sharing employment-related data from both DWP and HMRC with local authorities, with potential for further expansion through future amendments.
Expert Perspectives on Data Sharing Expansion
Fabian Chessell, central government lead at Policy in Practice, has emphasised the critical need for enhanced data sharing to improve employment support systems. He noted that the current Labour government has remained "silent" on data sharing matters, creating a policy vacuum. Chessell argued that giving Strategic Authorities power without corresponding data access would undermine their effectiveness, stating: "If we're giving them power, we need to give them data."
He further explained that the proposed legislation represents a straightforward solution to a complex challenge, suggesting: "Let's do the simple thing. There's a lot of complex questions in front of us, this isn't one of those."
Cautious Optimism and Ongoing Challenges
Phil Mawhinney offered a more measured perspective, welcoming the DWP's efforts to experiment with different approaches to increase take-up rates, including through data sharing initiatives. However, he issued a cautionary note to claimants, acknowledging: "However, there is still a way to go. It is a bit of an old chestnut that is quite difficult to crack, but it is still a valid chestnut, and that needs to be the priority."
Mawhinney emphasised that these challenges will persist for current and future generations, noting: "I think that that will continue to be the case, even for future pensioners as well."
Current Data Sharing Practices and Future Expansion
A DWP spokesperson outlined existing data sharing arrangements, explaining: "We already share income and earnings data with local authorities to help ensure people receive the Housing Benefit and council tax support they're entitled to." The department is now actively exploring ways to expand this data sharing with both Local Authorities and the newly established Mayoral Strategic Authorities.
The spokesperson emphasised the importance of these systems, noting: "Millions of people rely on our welfare system every year and it is vital that it can be accessed by all who need it." The proposed expansion aims to enable local authorities to "better connect people with employment support" through improved data access and coordination between different levels of government.
Strategic Authorities will assume responsibility for strategy development and programme delivery across specific thematic areas of activity, with corresponding functions detailed within a statutory devolution framework. This represents a significant shift in how employment support and related services are coordinated between national and local government levels across England.
