PCD 1784 Write-off of debt 2021/22 – 2023/24

Following a comprehensive review of trade debtors and salary and pension overpayments, this paper seeks approval to write off debt totalling £1,141,884 over the 3 year period 2021/22 – 2023/24. Of the total write off requested £1,060,914 is considered irrecoverable and £80,970 is considered uneconomical to pursue.  

The general approach in MOPAC is to recover any salary and pension overpayments and to ensure for each case, suitable management actions have been exhausted before reaching the decision to write-off the debt.  

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the write off of debt totalling £1,060,914 where the debts are considered irrecoverable, and; 

2. Approve the write off of debt totalling £80,970 where the debt is considered too uneconomical to pursue  

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC 

1. Introduction and background 

1. The general approach in the MPS is to recover all debts including salary and pension overpayments made to employees.  Consequentially debts are not written off until all reasonable recovery actions have been exhausted.  Even after a debt has been written off, if the debtor is traced or further information is received the debt will be written back on and the debt will again be pursued. 

2. Issues for consideration 

1. All the facts behind each instance are reviewed before considering whether a debt is irrecoverable.  Each case has been considered on its own merits and recommendations made accordingly.   

2. In line with the MOPAC Scheme of Delegation and Consent approval is sought to write off debts totalling £1,141,884 over the three year period 2021/22 – 2023/24 of which £1,060,914 relates to debts considered irrecoverable and £80,970 relates to debts which are considered uneconomical to pursue. A breakdown of the annual write off is set out in the table below. Further detail is provided in Part Two of the report. 

3. Financial Comments 

1. Approval is being sought to write off debt totalling £1,141,884 of which £1,060,914 are where the debts are considered irrecoverable and £80,970 are debts considered uneconomical to pursue. Over the three year period 2021/22 – 2023/24 there has been a small increase in the level of debt write offs requested.  

2. Whilst there are a variety of reasons that have led to the pension and salary overpayments  the main reason for the debt write offs appears to be either delays in identifying the overpayments, and taking action to recover the overpayment, or where the individual would have been unaware of the overpayment, and it is therefore felt inappropriate to recover the cost.  

3. MOPAC will seek assurances from the Met that processes are being reviewed and lessons learned to prevent recurrence in the future. Progress in reducing debt write offs will be reviewed as part of next years write off debt decision.  

4. Legal Comments  

1. Under the Police Reform and Social Responsibility Act 2011 police and crime commissioners “must (a) secure the maintenance of the police force for that area, and (b) secure that the police force is efficient and effective”.  

2. The MOPAC Scheme of Consent and Delegation paragraph 4.8 requires approval from the Deputy Mayor of Policing and Crime to write off all debts that are considered to be irrecoverable. 

5. GDPR and Data Privacy 

1. The Part 2 report contains some personally identifiable data. A Data Protection Impact Assessment (DPIA) is not required. 

6. Equality Comments  

1. There are no direct equality or diversity implications arising from this report. 

7. Background/supporting papers 

Appendix 1 MPS Write Off report 2021/22 

Appendix 2 MPS Write Off report 2022/23 

Appendix 3 MPS Write Off report 2023/24