Overtime Report 2009/10 – Quarter 4

Report: 6
Date: 5 July 2010
By: Director of Resources on behalf of the Commissioner

Summary

This report provides analysis on Overtime paid to Police Officers, Police Staff and Police Community Support Officers during the year to 31 March 2010.

A. Recommendations

 Members are invited to: Note the quarter 4 (to 31 March 2010) position for overtime costs of Police Officers, Police Staff and Police Community Support Officers.

B. Supporting information

Background

1. At the request of the MPA a paper was presented to the Resources Sub Committee (8 October 2009) which provided information to give Members a better understanding of the use of Police Officer Overtime in the MPS and the actions being taken to control the level of expenditure. As a consequence of that paper Members asked for a quarterly paper to update them on the position on overtime expenditure for Police Officers, Police Staff and Police Community Support Officers. This paper provides a summary of the overtime position for the year to 31 March 2010. The exempt Appendices 1 to 3 provide additional analysis of overtime expenditure as explained in paragraphs 3 to 6 below.

2. It should be noted that expenditure on Police Officer Overtime has been controlled effectively in recent financial years and there has been a 13.6% reduction in overtime expenditure since 2005/06 despite 6.9% growth in officer numbers over the same period. Table 1 demonstrates that the average cost of overtime per eligible Police Officer (Sergeants and Constables) has fallen by 19.2% since 2005/06 which is further evidence of management control over overtime. It should also be noted that a significant proportion of overtime is as a result of officers working normal duties on bank holidays. For example it is estimated that approximately 21% of overtime expenditure in Territorial Policing is due to such holiday working.

Table 1 - Average cost of overtime per eligible Police Officer

*Provisional Outturn for 2009/10

3. The exempt Appendix 1 breaks down the actual expenditure on Police Officer overtime by Business Group, and Borough Operational Command Unit (BOCU) for Territorial Policing (TP), for the year to 31 March 2010. It provides a quarterly summary of overtime costs, number of eligible officers on active assignment at the end of each quarter, and an average quarterly overtime cost per eligible officer for historical comparison. Similar information is also provided in this appendix for Police Staff and Police Community Support Officers.

4. In previous reports Appendix 1 has provided a breakdown of the reasons for working overtime based on apportioning the costs according to Operational Policing Measure (OPM) assignment codes. However, on reflection, this is not considered to be an accurate method of determining the reasons why overtime has been worked. Consideration was also given to using CARMS data as a more accurate reflection of the reasons for police officer overtime. This, however, has not proved practical as it would take too long to consolidate all the local CARMS data. Each BOCU report would have to be run separately for each month.

5. The exempt Appendix 2 shows a bar chart which provides details of numbers of Police Officers claiming overtime and the number of hours claimed for the year to end of March 2010. The chart shows the average number of hours per month claimed by Officers in various ranges of overtime hours paid from 1 to 100 and one additional bar for all those who have claimed on average over 100 hours each month. It should be noted that it does not include Officers that have not claimed any overtime during the year but it does include Officers who may have either started during the year or been promoted out of the eligible overtime ranks or left the MPS during the year. Similar information is also provided in this appendix for Police Staff and Police Community Support Officers.

6. The exempt Appendix 3 provides an analysis of the number of Police Officers by Business Group who were paid at least 100 hours in any month in quarter 4. Analysis is provided for each month within the quarter. Similar information is also provided in this appendix for Police Staff and Police Community Support Officers.

7. It should be noted that there are a number of benefits to be gained by the use of overtime. In particular it is an effective tool to:

Cover spikes in operational demand, sickness, secondments, aid deployments and other absences, in a flexible way without the need to recruit additional officers;

• Gain additional manpower, often at short notice;
• Maintain the evidential process and carry out ongoing investigations to ensure continuity;
• Maintain agreed minimum staffing levels; and
• Ensure that relevant specialist skills are available when required.

8. However, Management Board recognise the need to focus on both controlling and reducing overall costs and the other risks associated with the use of overtime which include:

• Potential impact on work / life balance and Police Officer and Staff safety;
• Officers and Staff can become reliant on the additional income and it can become institutionalised;
• Increased administration effort and costs;
• Potential for lack of management control and fraudulent claims; and
• Potential to “hang out” enquiries in order to obtain overtime.

Details of Business Groups relying on overtime and main reasons why

9. The four main users of Police Officer Overtime are the operational Business Groups Territorial Policing, Central Operations, Specialist Operations and Specialist Crime. The main reasons why these Business Groups rely on Police Officer Overtime are explained below.

10. Territorial Policing relies on overtime principally to manage fluctuations in demand for policing resources. A number of examples are listed below:

• To provide additional resources as part of proactive tasking operations to manage a specific issue.
• To provide cover for pre-planned events such as the Notting Hill Carnival, New Year celebrations or sports fixtures.
• To provide additional resources for unplanned events such as demonstrations and major incidents. For example policing of G20 protests, Tamil ceasefire and climate camp demonstrations.
• To provide temporary cover for under-resourced units due to vacancies and leave.
• To provide cover for officers who have been extracted from their planned duties.
• To provide resources in response to operational demands where the management of the demand and the budget are not under TP control (e.g. PolSA).

11. Central Operations is a pan London response business group which relies on overtime to provide flexibility for workforce deployment in respect of operational policing including spontaneous incidents related to public order, firearms, counter terrorism and major traffic incidents. Major examples this year include policing of the G20 protests, Tamil ceasefire and climate camp demonstrations. Without the use of overtime Central Operations would need a significant increase in Police Officer numbers to cover all the possible eventualities. This would be not be an operationally or cost effective use of resources.

12. Special Operations relies heavily on overtime for three primary reasons:

• Shortfall in Dedicated Security Posts (DSP) funding. In DSP funded units the grant from the Home Office does not provide enough funding to cover all the mandated posts. The operational risks associated with this funding shortfall have to be bridged by the use of overtime.
• Shortfall of Police Officer numbers. Despite extensive activity Specialist Operations still remains some way behind its recruitment profile for Police Officer deployment. Some of the staff shortages are managed through the use of overtime. It should be noted that year on year for the last three years overtime expenditure has reduced across Specialist Operations as Police Officer numbers have increased.
• Operational necessity. Overtime remains an effective means of managing the fluctuation of operational demands in year. In counter terrorism terms the demand from one year to the next can be quite significant.

13. Specialist Crime relies on overtime to provide flexibility in order to meet demand led operational requirements. If there are increased numbers of homicides or, as is the situation this year, an increased number of shootings, overtime is necessary to provide additional resources to investigate these crimes during such peak periods. In addition despite extensive recruitment activity Specialist Crime still has a shortfall in its deployment plan numbers. The use of overtime is a means of managing this shortfall.

Police Officer Overtime

14. Table 2 provides a summary of Police Officer Overtime expenditure compared to budget by Business Group for 2009/10 and 2008/09. For comparative purposes the 2008/09 figures have been adjusted to match the organisational structure for 2009/10. This shows that although the provisional 2009/10 outturn position is an overspend of £7.6m total expenditure is £6.7m less than in 2008/09.

Table 2 - Summary of Police Officer Overtime by Business Group

15. The main forecast overspends are within Territorial Policing (£3.7m), Central Operations (£1.7m), Specialist Crime Directorate (£1m) and Special Operations (£1.6m). Explanations are summarised below for each business group overspend.

16. Territorial Policing is not fully compensated for overtime incurred, when requested by Central Operations to police significant unbudgeted/unplanned public order events such as the G20 Protest, Tamil Ceasefire and Climate Camp demonstrations (from the CO11 aid fund budget). It is now recognised that funding of the net overspends on these events will not be sourced, thus resulting in Territorial Policing bearing the majority of the overtime costs from its own resources. In addition Territorial Policing provides most of the Licensed Search Officers (LSOs) whose deployment is managed by Police Search Advisors (PoLSA) based within the Counter Terrorism Command. Although having no management control over LSOs it is Territorial Policing that incurs the resulting overtime costs. Other operational commitments/initiatives (such as Operation Bumblebee and Blunt 2) have had an impact on the overtime costs within this business group. It should be noted that since the introduction of compliance measures by Territorial Policing in 2006 there has been improved control over overtime costs. Despite the additional costs incurred for policing the major public order events stated above the overall expenditure on overtime within TP decreased by £1.6m compared to 2008/09.

17. The most significant number of TP officers working in excess of 100 hours per month work within the Central Communications Command (CCC). This is mainly due to the number of vacancies and the need to maintain 24/7 operational capability. However it should be noted that the number of officers working in excess of 100 hours within CCC represents less than 4% of the budgeted workforce target for the unit. A review of the shift patterns has been instigated to optimise cover particularly at times of peak demand and reduce the need for overtime working.

18. Within Central Operations there is an increased claim for compensation from the Aid Fund budget in relation to the G20 Protest, Tamil Ceasefire and Climate Camp demonstrations. Also, overtime is used to cover operational requirements within Public Order & Operations, Traffic, TSG and Firearms OCUs, all having an effect on the forecast overtime expenditure.

19. The few officers working in excess of 100 hours overtime per month in CO are mostly in the Specialist Firearms Operations Unit. The nature of the work is at the top end of the fight against armed criminality, counter terrorist and kidnap operations. The main critical areas include:

• Counter terrorist operations - covert and overt
• Hostage rescue
• Armed support to surveillance
• Execution of warrants for all MPS OCUs
• Protection operations at high profile ceremonial events

There is a limited number of operators due to the demands of assessment and selection. This combined with the nature of the work means that officers are often required to work extended hours to support critical MPS operations. For example, a kidnap operation may run for several days requiring 24/7 support and with limited numbers of operators the unit does not have the flexibility to change staff mid way through the operation.

20. It should be noted that the Home Office has paid the MPS specific grant of £3.8m to cover the additional cost of policing the G20 summit. This income is held centrally but offsets overtime spend in both TP and CO.

21. Within the Specialist Crime Directorate overtime is being used to cover operational requirements, which include increased activity around surveillance deployment. Furthermore, an increase in the number of gun-related crimes has increased the overtime costs within the Operation Trident OCU. There is also an overspend in the Met Intelligence Bureau due to additional hours worked to cover vacant posts and the Operational Support Unit.

22. The high overtime earners in SCD are fairly evenly distributed between Homicide, Trident and Serious and Organised Crime. This is due to the high level of operational activity with officers having to work long hours on various operations.

23. Within Special Operations overtime is currently being used to cover operational requirements as a result of vacancies caused by difficulties in recruitment to specialist roles. Additionally, increased requests for protection of the (extended) royal family, government ministers and overseas visiting dignitaries have all resulted in increased overtime incurred in the Palace of Westminster, Royalty Protection and Specialist Protection OCUs. However significant reductions in expenditure have been achieved compared to 2008/09. Overall overtime expenditure has decreased by £5.4m with the most significant reductions being in Diplomatic Protection (£1.7m), Aviation Security (£1.4m) and the Counter Terrorism Command (£2.2m).

24. Following the introduction of the three year officer deployment plan in 2008/09, the Service monitors the officer salary and overtime budgets on a service-wide basis and recognises that:

• TP are the point of entry into the Service
• there may be delays in deploying officers from TP to the specialist business groups

The provisional outturn overspend on overtime of £7.6m is fully offset by the provisional outturn underspend of £18.7m on police officer salaries.

Audit Commission Recommendations 2008

25. As part of the commissioning brief the MPA has requested a revised timetable which can be used to monitor progress in addressing the Audit Commission’s recommendations. Appendix 4 provides an update of progress against their recommendations and revised target dates for implementing those recommendations that are still outstanding.

Financial Penalties

26. As part of the commissioning brief the MPA has requested details of the financial penalties that have been imposed within Territorial Policing. Table 2 provides a summary of the penalties imposed on named BOCUs. The TP Financial Management Framework identifies which cost and income categories are included within the Devolved Bottom Line (DBL) budget and budget holders are required to manage within the constraints of their DBL budget. Budget holders are liable to sanction if they overspend against their DBL budget. The outturn position for TP and for each borough is reviewed each year and a decision made about whether the imposition of financial penalties is appropriate. Account is taken of the level of overspend and whether it has been caused by events that are outside the control of the boroughs. Details of the most recent sanctions imposed relating to 2006/07 are provided in Table 3. The table shows the amount of budget that was transferred out from the BOCU and into the corporate TP cost centre. The outturn is reviewed each year but it has not been appropriate to impose penalties every year. When such penalties have been imposed, it has been the case that the following year, the boroughs spend is much more in line with their budget. This reflects the success of the compliance measures implemented by Territorial Policing as it has not been necessary to impose financial penalties since 2006/07.

Table 3 - Summary of Penalties imposed within Territorial Policing

27. Whilst reviewing the quarter 3 Overtime Report the Members at the Resources and Productivity Sub-Committee on 1 March 2010 requested further information on how TP monitors and controls expenditure reviews planned use of overtime and promotes good practice across BOCUs.

28. TP monitors and controls expenditure through the TP Financial Framework and Business Improvement pack. The Assistant Commissioner for TP holds the Borough Commanders to account for their financial performance through the Area Commanders. There is a meeting structure which enables performance to be assessed and addressed as appropriate. Good practice is promoted and adopted across TP through these forums. The Framework provides the rules of engagement and a consistent and compliant approach to financial management across TP. There are high risk budget categories such as police overtime which is highlighted through a Red Amber Green (RAG) reporting system and action taken accordingly. In summary the main procedures used by TP management to monitor and control expenditure are listed below:

• BOCU Commanders are held to account for their total devolved budgets with overtime highlighted in the monthly reports.
• Achieving a balanced outturn for total devolved budgets (including Police Officer overtime) is part of a BOCU Commander’s Performance Development Reviews.
• Tolerance levels for overtime are set with further supporting/mitigating information requested if a BOCU overspends by more than 10%.
• The Audit and Compliance team will visit BOCUs where an overspend is forecast and will test systems, controls, etc.
• As part of the Territorial Policing financial framework, financial penalties can and have been imposed on BOCUs for overspending the overtime budget.

29. As part of the recent modernisation of Finance within TP, a comprehensive Police Officer Overtime management pack has been introduced that includes details of High Earners and a standardised system to enable welfare management of high earners. At present the TP Chief Officer Group is currently considering an option paper that proposes a process for instigating rewards and sanctions in relation to BOCU performance. There appears to be consensus that this should be re-introduced, however the approach to be adopted is yet to be decided upon.

Police Staff Overtime

30. Table 4 provides a summary of Police Staff Overtime expenditure compared to budget by Business Group. This shows that the provisional 2009/10 outturn position is an overspend of £0.5m. It should be noted that overtime can be a cheaper way of providing variable staff cover needs outside of normal working hours as opposed to paying shift premiums on a regular basis and therefore is a useful and efficient management tool. Although one that it is recognised needs to be carefully managed.

Table 4 - Summary of Police Staff Overtime by Business Group

31. The main forecast overspends are within Territorial Policing (£0.7m) and Specialist Crime Directorate (£0.7m). These are partially offset by underspends in Central Operations (£0.5m) and Human Resources (£0.5m). Explanations are summarised below for each business group overspend.

32. Within Territorial Policing the overspend is principally due to increased levels of Police Staff support required for operational activities, mainly for local Operation Blunt 2 initiatives (knives and serious youth violence). There is also additional overtime within the Central Communications Command to maintain adequate cover in order to manage the high levels of activity.

33. The most significant number of TP police staff earning in excess of 100 hours per month are in the Central Communications Command. However it should be noted that the number of staff working in excess of 100 hours within CCC represents less than 0.5% of the budgeted workforce target for the unit. This is mainly due to the number of vacancies and the need to maintain 24/7 operational capability. The high earner (band B) in February and March is from TP Crime and was providing support for Operation Bumblebee.

34. Within Specialist Crime the main overspends are in Forensic Services (£0.5m) and Operational Information Services (OIS) (£0.2m) where there has been an increase in the level of operational activity. The overspend in OIS is offset by an over recovery in income. The Met Intelligence Bureau (MIB) has an overspend of £0.4m which is mainly due to covering vacancies.

35. The police staff earning over 100 hours in any one month within SCD is not specific to any one unit. High earners to note are the four band D’s in January who were working in MIB supporting two covert operations Altaria and Azimut. The band E who claimed 264 hours in January works in the PNC Bureau. However this claim represented overtime worked over a period of 10 months since March 2009. Two out of the three band Ds earning over 100 hours in March are from Homicide and were required to provide support to a number of operations in a period of high activity.

36. Other staff claiming high number of overtime hours include:

• DoI - Band I in Technology was paid for 173 hours overtime. This payment was for February and March due to work on providing CCTV and communications equipment to monitor various public order events.
• HR&LS - Most high earners are in catering and the overtime is required to cover for vacancies. The band C in February and the band D in February and March were seconded to the ACPO National Community Tensions Team. The costs of these secondees are reimbursed to the MPS by ACPO.
• DoR - The band V works in Operational Support and was required to work supporting various operations.
• SO - The majority of the high earners are security guards working at the Palace of Westminster and are required to cover for vacancies. In February one band O (driver) within Specialist Protection was paid 154 hours overtime to ferry vehicles and protection officers to venues outside of London. This was regarded as a cheaper option than using pool cars or private hire.

Police Community Support Officers

37. Table 5 provides a summary of PCSO Overtime expenditure compared to budget by Business Group. This shows that the provisional 2009/10 outturn position is an overspend of £0.4m.

Table 5 - Summary of PCSO Overtime by Business Group

38. The overspend is within Territorial Policing and is due to the need for additional PCSO support to Police Officers in an increasing number of operational activities including Operation Blunt 2 (knife crime) and Operation Winter Nights (a Safer Neighbourhoods initiative to reassure the public via a high visibility police presence).

C. Race and equality impact

There are none specific to this report.

D. Financial implications

The financial implications are those set out in this report.

E. Legal implications

There are none specific to this report.

F. Background papers

• None

G. Contact details

Report authors: Nick Rogers, Director of Finance Services.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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