Tuesday, 8 November 2011

Work from home and save Treasury £15bn a year, says Eric Pickles

By , Political Correspondent
More state employees should work from home to save the taxpayer billions of pounds in office rent, according to a report backed by Eric Pickles, the Local Government Secretary.
  The report, which was announced by Mr Pickles, called on public services to share office accommodation, depots and customer service desks to save money Photo: PA
The study suggested that increasing the number of public-sector workers on "flexi-time" or working from home could save the Treasury £15 billion a year.
The move would reduce the amount spent on office space, cut sickness levels and could even increase productivity by up to 15 per cent, the report found.
Working from home has become far more common in recent years, as broadband internet connections have become widely available, and smartphones make portable email services much easier to access.
According to the Office for National Statistics, more than a quarter of the British workforce "sometimes" work at home, although the number of people working "mainly" at home is just 2.9 per cent of the workforce, or 851,000 people.
According to the report, Leaner and Greener, a five per cent increase in the number of public-sector employees working flexibly or at home would be sufficient to make the projected savings.
The report, which was announced by Mr Pickles, called on public services to share office accommodation, depots and customer service desks to save money.
It also suggested that councils, health centres, emergency services and other organisations should pool their properties so buildings could be used for the best purpose in that area.
Mr Pickles said: "This report clearly shows how it is possible to deliver real savings and other benefits. The expertise is there, the experience is there – time to get on and do it."
He called on civil servants to be "ruthless" in finding ways to cut costs. "Taxpayers have the right to expect public servants to be ruthless in the pursuit of good value – and utterly unforgiving of bureaucracy. The best councils are doing everything in their power to make taxpayers' money go further, cutting out waste, sharing back offices and redesigning services."
The report was published by the Westminster Sustainable Business Forum, which is made up of businesses, government agencies and parliamentarians. Matthew Hancock, the Conservative MP who chaired the inquiry, said £7 billion could be saved from property costs and £8 billion could be generated from better staff productivity.
"This work shows the vast scale of the prize when councils and other public bodies like the police and fire services work together," he said.
The rise in home working has had a beneficial effect on Britain, according to the Trades Union Congress, which calculated that it had contributed to the shrinking of the average commute time.
However, business groups have been cautious about the benefits of allowing more employees to work from home.
The Institute of Directors has warned that businesses know how best to organise their staff working patters. The CBI has said office working is unlikely ever to be obsolete as staff will always want to "bounce ideas off" each other.
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