DMFD282 Replacement HR and payroll system (iTrent)

1.1.    Report LFC-25- 098 to the London Fire Commissioner (LFC) provides a detailed overview of the proposal. This is a summary of that report.

1.2.    In 2021, London Fire Brigade (LFB) received approval to buy the iTrent HR and payroll system. This was to replace Cyborg, a legacy HR and payroll database that LFB has used for over 30 years (see DMFD106 and LFC-0458y). In January 2025, LFB received approval for additional expenditure to implement iTrent (see DMFD257 and LFC-24-111) before the Cyborg system becomes unsupported in December 2026. 

1.3.    In October 2025, LFB decided that the planned iTrent go-live date of November 2025 was not feasible. This was due to a high risk of salary errors and other issues impacting contract information and reporting. LFB has identified the cause of these issues as relating to Cyborg. LFB’s Director for People, in consultation with the Director for Corporate Services, decided to postpone iTrent go-live, so that the issues (detailed in LFC-25-098) can be addressed and all necessary assurance provided. 

1.4.    LFB has considered other options for replacing the Cyborg legacy system. These have been discounted, on the grounds of being too expensive; resource-intensive; and time-consuming. LFB considers that transferring data from Cyborg into any new system would present the same issues experienced in the current project.
 

2.1.    LFB is requesting approval to spend up to £424,786 (including contingency). This is the maximum forecast project cost of £436,434, less a forecast underspend of £11,647, to 31 December 2025, of previously approved funding. A detailed breakdown of LFB’s forecast costs is provided in Table 1 below.

2.2.    LFB’s core funding request of £276,465 (before contingency) is expected to deliver iTrent functionality in two phases, in 2025-26 and 2026-27. 

2.3.    LFB expects that the core iTrent HR and payroll system implementation will be completed in phase one, by resolving critical data issues. It forecasts that, if the revised go-live date of February 2026 is met, phase one will cost £220,221.

2.4.    LFB plans to start phase two only when phase one is complete; it is scheduled for the first quarter of 2026-27. Phase two will introduce a case-management module to address case-handling concerns; and a performance management module to replace the existing appraisal conversations application. LFB forecasts that phase two will cost £56,244. 

2.5.    It may be the case that the complexity of data migration and payroll accuracy checks need more time than anticipated; and LFB cannot complete phase one for go-live in February 2026. If this happens, LFB plans to move to a backstop completion date of April 2026. LFB has forecast that, in this instance, contingency of up to £159,969 may be required to complete both phases of the project. 
 
Table 1: Breakdown of iTrent Project Costs

3.1.    The LFC and the Deputy Mayor for Planning, Regeneration and the Fire Service (Deputy Mayor) are required to have due regard to the Public Sector Equality Duty (section 149 of the Equality Act 2010) when taking decisions. This, in broad terms, involves understanding the potential impact of policy and decisions on those with protected characteristics; taking this into account; and then evidencing how decisions were reached.

3.2.    It is important to note that consideration of the Public Sector Equality Duty is not a one-off task. The duty must be fulfilled before taking a decision, at the time of taking a decision, and after the decision has been taken.

3.3.    The protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), race (ethnic or national origins, colour or nationality), religion or belief (including lack of belief), sex, and sexual orientation.

3.4.    The Public Sector Equality Duty requires decision-takers in the exercise of all their functions, to have due regard to the need to:

•    eliminate discrimination, harassment and victimisation and other prohibited conduct
•    advance equality of opportunity between people who share a relevant protected characteristic and persons who do not share it
•    foster good relations between people who share a relevant protected characteristic and persons who do not share it.

3.5.    Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:

•    remove or minimise disadvantages suffered by persons who share a relevant protected characteristic where those disadvantages are connected to that characteristic
•    take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it
•    encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.

3.6.    The steps involved in meeting the needs of disabled persons that are different from the needs of persons who are not disabled include, in particular, steps to take account of disabled persons’ disabilities.

3.7.    Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to: 

•    tackle prejudice 
•    promote understanding.

3.8.    LFB carried out an equalities impact assessment for the introduction of a new HR and payroll system in 2021; this is attached as an appendix. LFB reports that it has reviewed the 2021 assessment; given that the content of the system and its functionality remain the same, it does not consider an update necessary.
 

Procurement

4.1.    The LFC’s procurement team has confirmed the following.

4.2.    The additional services will require a variation to the contract with the current supplier. A change of supplier would require further procurement; this would add significant time; risk (around uncertainty with a new supplier); and duplication of costs. The scope and value of the supplier costs, associated with the variation, are deemed to be compliant with the Public Contracts Regulations 2015 (PCR 2015).

4.3.    PCR 2015 reg 72(1)(e) permits variations to public contracts or framework agreements where those variations, irrespective of value, are not substantial. A “substantial” variation is defined by PCR 2015 reg 72(8) as any change, irrespective of value, that meets any one or more of the following conditions:

•    it renders the contract materially different in character from the original
•    it would have allowed other potential suppliers to participate or be selected, or another tender to be accepted
•    it changes the economic balance of the contract in favour of the contractor in a way which was not provided for
•    it extends the scope of the contract “considerably”
•    it replaces the original contractor, other than where the change arises from a review or option clause in the original contract or from corporate restructuring such as merger, takeover or insolvency. 

4.4.    Whether a change causes “considerably” extended scope or renders a contract “materially different in character” will depend on the circumstances of each case. In this case the variation is not changing the contract “considerably” in terms of scope and value, relative to the original contract; and therefore does not render the contract “materially different in character”.

4.5.    LFB has factored resourcing costs into its funding request. LFC-25-098 appendix 1 provides the iTrent assurance list – according to LFB, this includes a refined focus on outcomes for staff; and improved support for the teams who are responsible for updating the system.

4.6.    LFB reports no sustainability considerations for this project. 

Conflicts of interest

4.7.    There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.
 

5.1.    LFC-25-098 provides an update on the HR and payroll system replacement project (iTrent); and records LFB’s decision to delay implementation from November 2025 to a projected date of February 2026. 

5.2.    The report requests approval, from the LFC, for a total potential spend of up to £424,786. This is to revise and complete the delivery of the replacement HR and payroll system for LFB. This consists of:

•    revenue expenditure of up to £276,465, to meet the revised implementation date of February 2026
•    an additional £159,969 contingency, in case of any further delay in implementation for up to two months, to April 2026. 

5.3.    LFB anticipates that of the cost before contingency (£276,465): 

•    £220,221 will be spent in 2025-26 
•    the remaining £56,244 for phase two will be spent in 2026-27. 

5.4.    LFB reports that, in the event of go-live being in April 2026, the contingency for phase one will be split between 2025-26 and 2026-27; and the £14,061 contingency for phase two will be spent in 2026-27. 

5.5.    The additional expenditure set out in this report will be funded from any additional underspend identified within the People Services directorate, in the first instance. LFB’s published Quarter 2 Financial Position report set out a forecast underspend, within People Services, of £189,000. LFB reports that, with ongoing work to review the position, additional underspends have been identified and are currently being confirmed. LFB reports that this will not impact LFB’s financial forecast within People Services, or across LFB as a whole.

5.6.    LFB reports that, if the underspend identified can cover the full cost, any residual amount will be transferred into an earmarked reserve at the end of the financial year, against any potential costs in 2026-27. If the underspend identified is not sufficient to meet the full cost, LFB will consider the use of earmarked reserves to meet any shortfall. This includes a reserve balance of £330,000 held for residual costs in People Services from prior reviews. 

5.7.    If this is not sufficient, or if adverse movements within People Services are identified later in the year, LFB will take action (based on anticipated expenditure) to ensure this can be managed in line with existing financial controls, and regular financial position reporting. 
 

6.1.    The LFC’s General Counsel’s Department has confirmed the following.

6.2.    This report seeks approval to spend £424,786, set out in LFC-25-098. This will be used to fully implement the iTrent system for HR and payroll. 

6.3.    Under section 9 of the Policing and Crime Act 2017, the LFC is established as a corporation sole, with the Mayor appointing the occupant of that office. 

6.4.    Pursuant to section 327D of the Greater London Authority Act 1999, as amended, the Mayor may issue to the LFC specific or general directions as to the manner in which the holder of that office is to exercise his or her functions. 

6.5.    By direction dated 1 April 2018, the Mayor set out those matters for which the LFC would require the prior approval of either the Mayor or the Deputy Mayor. In particular, paragraph (b) of Part 2 of the said direction requires the LFC to seek the prior approval of the Deputy Mayor before “[a] commitment to expenditure (capital or revenue) of £150,000 or above is identified in accordance with normal accounting practices”. The proposed expenditure set out in this report exceeds this financial threshold; accordingly, prior approval from the Deputy Mayor is sought.