Report highlights problems of ‘generation gap’ in wake of hiring freeze
Whitehall is at risk of not having the talent and skills needed to face future challenges after significant, “unsustainable” cuts to the service, the National Audit Office (NAO) has warned.
The number of civil servants fell by 18 per cent, from 492,000 in March 2010 to 405,000 in December 2014, according to NAO figures, reducing the annualised salary bill by £2.49 billion.
Such significant cost savings were achieved mainly through a service-wide recruitment freeze, which has impacted the demographic of the civil service workforce, the NAO report said.
The number of employees aged 20 to 29 years old fell from 14 per cent in 2010 to 9 per cent in 2014, while the percentage of 50 to 59 year olds increased from 26 per cent to 31 per cent over the same period.
The report warned that continued restrictions on recruitment would create a "generational gap" which could cause a serious skills shortage in future, and potentially damage public service delivery.
Amyas Morse, comptroller and auditor general of the NAO, said: “Departments have significantly cut their staff numbers and costs in the last five years but not enough planning has gone into making sure that, over the longer term, the reductions already made and any required in future are sustainable and do not damage the delivery of public services.
“The centre of government must do more to help departments meet these challenges, including managing the heightened risk of a shortage of vital skills,” he added.
For the report, the NAO examined four government departments including HM Revenue and Customs, the Ministry of Defence, the Department for Transport, and Department for International Development.
It found that in general the departments did not have long term plans to work with fewer staff; had not yet fully implemented strategic workforce plans across their groups, and lacked comprehensive information on workforce skills beyond the 2015 period.
“Our case study departments have weaknesses in their approaches to developing strategic workforce plans, which could hinder staff cost reductions,” the report said.
The NAO said the service would have to develop its long term operating models and strategic workforce plans, to ensure any future reductions were sustainable, but at the same time, allow for the development and recruitment of critical skills needed.
Dave Penman, the head of FDA – the trade union for UK senior civil servants and public service professionals – has previously warned that up to 100,000 more civil service jobs could go by 2020, putting further strain on the future talent pipelines.
A Cabinet Office spokesman told the BBC that the government had noted the report and would review its recommendations.
"We are working to ensure that the civil service is more skilled and diverse, and have made good progress in building strong commercial, digital and project delivery skills. We will continue to focus on these areas," the spokesman added.