The Single Payment Scheme was introduced in 2005 as part of EU reforms to farm subsidies. The Rural Payment Agency experienced serious difficulties administering the scheme in the first two years of its operation. We found it lacked mechanisms to provide early warning of these difficulties: the system was not tested in its entirety before implementation, and there was a lack of reliable data on contractors' progress. Although many of the IT contracts for supporting the Scheme expired in 2009, the high degree of customisation in the systems restricted the Agency's scope to investigate alternative suppliers. Our 2009 report found errors in Scheme data persisted, and the cost of administration had risen by 22 per cent to £1,743 per claim.
Within departments weak governance structures and poor performance management systems have resulted in missed benefits, or escalating costs and timescales.24 Projects that succeed have strong data systems, oversight of performance throughout the project, and strong accountability for delivery.25 Successful delivery requires stronger leadership setting the tone by encouraging honesty in estimates, challenging optimism bias and assumptions and being willing to stop projects which no longer make sense.
__________________________________________________________________________________
24 Regenerating the English Coalfields (HC 84, 2009-10), The BBC's Management of Three Major Estate Projects (Report to the BBC Trust, 30 November 2009).
25 The BBC's Efficiency Programme (Report to the BBC Trust, September 2011).