Corporate report

Accounting Officer Assessment Summary: Contact Engagement Programme

Published 1 November 2021

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start, or vary major projects, and assess whether they measure up to the standards set out in HM Treasury’s Managing Public Money guidelines. From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of a project within the Government Major Projects Portfolio (GMPP).

Background and context

The Contact Engagement Programme is an integral part of HMRC’s transformation agenda. The present phase is an infrastructure programme which will modernise HMRC’s digital and telephony interactions with customers (circa 53 million incoming and 1 million outgoing calls per annum) by displacing ageing technology with new ‘best in breed’ tools and continuing the disaggregation of the existing KCOM supplier relationship with limited optimisation by late summer 2022.

This programme is one of the foundational steps to HMRC’s goal to improve customer interactions making them both a better experience and more efficient. The capability being implemented will not only ensure that HMRC will continue to have a robust infrastructure to support its significant customer service role but also, allow HMRC to move more services to be digital by default. The programme will bring both new infrastructure and business change and support HMRC’s vision for a trusted, modern tax administration.

The available funding has not leant itself to significant transformation although the ‘out of the box’ capability will deliver some benefits. Further benefits will be possible with optimisation and further development of the new technology capabilities; however, this is dependent on future funding.

There will be an opportunity for further efficiency benefits as the department develops more end-to-end digital services, with the contact engagement tools providing the way to keep customers in digital channels, understand customer behaviour, target interventions and, where still necessary, deal with more complex queries via voice. Even without future investment funding, the Contact Engagement Programme will lead to an improved and more accessible service, aligned to the ambitions of assisting in avoiding customer error and driving up self-service, the benefits of which are set out below.

Improving the service

The roll-out of the Adviser User Interface (AUI) will realise benefits through providing HMRC advisers with a complete view of the customer’s affairs, with automated population of data to reduce manual errors, facilitating a consistent ‘once and done’ approach for customer responses. Guidance integrated into the call software will ensure advisers adopt a logical approach in discussions with customers and, when embedded, should deliver greater call handling productivity through reduced call handling times. The implementation of AUI significantly reduces the risk to HMRC from the degradation of an integral service, allowing any future changes to be processed in HMRC at a reduced cost.

The Digital Engagement Platform (DEP) has been re-platformed, modernising customer communication tools and has realised £1.5m cost avoidance benefits. DEP tools (webchat, Virtual Assistant and Conversational User Interface tools) have already been used to help support COVID-19 and EU Transition activity. Furthermore, DEP solutions have enabled seamless hand-offs from one digital service to another without the need for customer re-authentication, thereby maximising opportunities for customers to self-serve.

Assisting in avoiding customer error and driving up self-service

The Contact Engagement Programme introduces new integrated technology and removes complex customer journeys through simplification of telephony call routing. Deflection messages have been updated to signpost self-service, alongside modernised DEP solutions which help drive self-service by automatically answering customer questions to support channel shift. For example, if a customer has a query while using a digital channel such as one provided for Covid, a deflection message helping them resolve their query can keep them in the digital channel and not shift them to phone. Webchat trials are ongoing to improve concurrency handling, since the industry standard is for handlers to manage more than one webchat at a time, making an efficient replacement of phones.

Regularity

The Programme is ensuring effective controls are in place to protect HMRC and customer data, including compliance with all relevant legislation. There is no requirement for legislative or regulatory changes arising from the planning or execution of the programme.

Propriety

The programme adheres to the HM Treasury and HMRC Change Framework Governance. HMRC procurement standards will be applied throughout. The programme also follows Cabinet Office controls for IT and procurement, which ensure compliance with government guidelines. A monthly programme board has been established as the main decision-making authority with a Director General as Senior Responsible Owner; key HMRC stakeholders (as well as HM Treasury, Cabinet Office [specifically Government Digital Service] and IPA) are represented on it. The programme is also subject to the central oversight applying to Government Major Projects Portfolio projects.

Value for money

Value for money has been assessed with a full options appraisal documented in the programme Business Case. To secure value for money, the Contact Engagement Programme has undertaken an open tender process to select suitable providers to deliver key components of the Customer Engagement Platform. Approval has been sought and achieved through Cabinet Office, Government Digital Service (GDS) and HM Treasury.

The vast majority of spend is with IT partners with significant experience of supporting UK government departments. HMRC’s Chief Digital and Information Officer and Chief Finance Officer functions have the experience in acquiring services from partners and other suppliers needed to ensure we derive value for money.

The costs and benefits of the programme will be measured and checked against the expectations set in the approved business case. Work is ongoing to measure the performance improvements that are occurring as a result of the introduction of AUI, with testing due to take place in October 2021 to measure the value that the introduction of AUI has added. The AUI tool previously implemented has had some technical enhancements and fixes made that should further improve operational performance.

It is anticipated that the programme will repay its initial investment over 10 years even if no further development or optimisation takes place.

Feasibility

There are significant challenges to successfully managing and delivering such a complex programme, which cuts across HMRC, Valuation Office Agency (VOA) and Adjudicator’s Office (AO). Significant business operational input has been given by HMRC, VOA and AO relating to usage of the existing telephony platform to ensure the effective design and delivery of the new telephony service. In April 2021, responsibility for the Programme moved into the new HMRC Transformation Group as an element of HMRC’s strategic roadmap. Despite some initial delays, the Programme is delivering at pace, having already met several delivery milestones, and has successfully crossed several assurance and approvals hurdles including an independent assurance review.

Changing any service that involves over 25,000 colleagues on a day-to-day basis while maintaining customer service throughout is not without risk. The main focus of the programme at this final stage is the deployment of telephony, data and reporting, risk management and business readiness. Managing the multi-supplier environment and the multi-directorate impact adds a level of complexity. The programme team is well organised and has the necessary skills to achieve the task.

Following key delivery issues that impacted the planned rollout in 2020 to 2021, the Programme has re-planned delivery, and ensured technical capabilities are ready, with migration due to commence in March 2022 and running to June 2022. Increased testing of the service has been built into the delivery plan, including ‘firebreaks’ as part of an agreed migration approach. Further independent assurance reviews and HM Treasury approvals are planned at appropriate points throughout the lifecycle, with a Gateway 4 review scheduled for December 2021.

The programme leadership, supported by delivery partners, has the skills and experience needed to ensure the feasibility of the project deliverables and achieve the remaining milestones in the timeframe.

Conclusion

As the Accounting Officer for HMRC, I have considered my assessment of the Contact Engagement Programme and on balance, the proposal is value for money and deliverable, and I have approved it as of 1 October 2021. I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of the Programme, I undertake to prepare a revised summary, setting out my assessment of them. This summary will be published on the Government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Accounting Officer’s name: Jim Harra, Chief Executive HM Revenue and Customs.

Date of signing: 1 October 2021