DWP unveils future vision for new back office headquarters
ANEW headquarters for the Department for Works and Pensions (DWP) in south Wales, which will employ 1,700 near Pontypridd, can be revealed.
The DWP is relocating its back office and benefit processing operations, currently run from a number of office sites across south Wales, to a new building at Nantgarw on the Treforest Industrial Estate.
The investment is the latest in the rationalisation of non-devolved civil service offices in Wales into new hub buildings.
A new 260,000 sq ft UK Government public centre hub is under construction at the Central Square scheme in the centre of Cardiff, which will house 4,000 HMRC staff.
Staff currently at DWP offices in Cardiff, Newport, Cwmbran, Merthyr and Caerphilly are expected to move into the new 132,000 sq ft building in 2021.
The office in the Gabalfa area of Cardiff is DWP’s current largest back office and benefit processing centre in south Wales, employing 400.
DWP said it hoped staff will relocate to the new site, but that it would be looking at alternative roles for those who are unable to commute.
It also confirmed that all its jobcentres in south Wales will remain in their current locations, apart from Merthyr where a new centre will be opened in the town within the next three years.
The new HQ building is being developed by Cardiff-based property development firm Rightacres Property. The DWP has agreed a 25-year lease on the building.
It is understood that Rightacres, which is delivering the new 260,000 sq ft public sector hub at its Central Square scheme in Cardiff, has acquired land at Nantgarw from private equity firm Blackstone for the new DWP headquarters. The scheme is expected to be forward funded by financial services giant Legal & General, who are also understood to have agreed, subject to planning, to take ownership of the building once DWP take occupancy.
A planning application to Rhondda Cynon Taf council will be submitted next week. Subject to planning, work will start in September.
Rhondda Cynon Taf council leader Andrew Morgan said: “This is another positive economic boost for Rhondda Cynon Taf and once again demonstrates the ability Pontypridd has in attracting investment as a result of its pivotal location at the heart of the City Deal for the Cardiff Capital Region.
“The wider Pontypridd and Treforest region has been identified as a strategic opportunity area by cabinet members, with its potential for economic growth and job creation.”
DWP Secretary of State, Esther McVey said: “This new space brings talented colleagues together under one roof – harnessing local expertise and promoting closer working relationships that will benefit claimants. It’s also further demonstration of the UK Government’s continued commitment to investing in jobs and infrastructure in Wales.”
Secretary of State for Wales, Alun Cairns said: “Having 1,700 UK Government employees at a purposebuilt site is a positive economic boost for Treforest and the surrounding area.
“The new office will complement the UK Government Hub in central Cardiff and provide more high quality employment outside of the city in a modern environment.
“The UK Government is doing all it can to foster economic growth, investment and sustainable employment by implementing key policies such as scrapping the tolls between England and Wales.”
Rhys James of the Cardiff office of international property advisory firm Cushman & Wakefield is acting for DWP.