Up to 40% of jobs to go at DCLG, admits incoming permanent secretary

Up to 40% of jobs at the Department for Communities and Local Government could go and compulsory redundancies are “unavoidable”, its incoming permanent secretary has admitted.

Sir Bob Kerslake issued the warning to DCLG staff at a briefing last week after the department’s administrative budgets for the four years to 2014-15 were slashed by 33% in the Comprehensive Spending Review.

Reductions in staffing levels will occur in sequence, from the top down. The number of posts at director grade – the one below permanent secretary – will be cut from 21 to 15 as part of the overhaul.

Sir Bob, outgoing chief executive of the Homes and Communities Agency, told staff that a process would take place between now and Christmas to select the directors general and directors.

The DCLG’s structure will also be shaken up, with two director general roles covering the policy areas of Localism (including local government, fire, communities and the Big Society) and Neighbourhoods (including housing and planning). A third director general will lead finance and corporate services.

The overall restructuring of the DCLG is expected to be completed within two years.

Sir Bob claimed that every effort would be made to minimise compulsory redundancies. An initial voluntary redundancy scheme will shortly be offered to DCLG civil servants.

Kerslake said the department’s role would alter significantly under the government’s localism agenda.

He added: “We'll do more enabling and less intervening. We'll be a smaller department but stronger - and we will play a more strategic role, punching our weight in Whitehall. We're streamlining at every level, and it starts at the top.

"This is an opportunity to improve the way we work. It's my intention that we move at pace, making these changes in two years, to reduce the uncertainty for everyone."