Overtime report 2010 – quarter 3

Report: 6
Date: 14 March 2011
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 quarter from 1st October to 31st December 2010 and a summary of the overtime position for the period to 31st December 2010.

A. Recommendations

Members are invited to:

1. Note the Quarter 3 (1st October to 31st December 2010) position for overtime costs of Police Officers, Police Staff and Police Community Support Officers and to make any comments.

B. Supporting information

Background

1. At the request of the MPA a report 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 report. Members asked for a quarterly report to update them on the position on overtime expenditure for Police Officers, Police Staff and Police Community Support Officers. The Quarter 1 report set out the main rules governing Police Officer overtime, details of the main reasons why Business Groups rely on overtime along with various cost information. This report provides a summary of the overtime position for the period to 31 December 2010. The exempt Appendices 1 to 3 provide additional analysis of overtime expenditure as explained in paragraphs 10 to 12 below.

2. Following the Quarter 1 report, members requested further information on the extension of officer shifts at short notice and about time taken off in lieu, the impact on overtime costs and how it was treated in budgets. These issues are addressed below.

Time off taken in lieu of payment.

3. When officers work overtime they can choose to be paid, to take time off in lieu (TOIL), or to be paid for part of the time worked and take the remainder off in lieu. Officers can make the choice at any time during the pay period in which the overtime was worked.

If officers choose to take TOIL, then the time is allocated on the Duty Roster in accordance with the operational needs of the unit. If an officer does not take the time off within three months, the time is automatically passed for payment instead. Table 1 shows the hours elected to be taken as TOIL, how many of those hours were subsequently paid and the percentage of the total overtime hours worked that are actually taken as TOIL.

Table 1 - Time off taken in lieu of payment

*paid between the 6 month period July to December 2010 e.g. April hours paid in July, May hours paid in August etc.

4. The financial impact of the above is difficult to assess. This is because it is not known whether the abstractions from duty which result from officers taking TOIL are left uncovered or are filled by officers working overtime. However, we estimate that 43 officers would be required annually to cover the time taken off in lieu at a cost of £2.4m. Alternatively, if the time taken off in lieu were covered by existing officers working overtime, we estimate that the cost would be approximately £1.8m.
Like all budgets within the MPS, overtime budgets are generally set on an historical basis, building in any identified growth or savings. TOIL is an historical element and is not identified separately when assessing budget requirements.

Extension of officer shifts at short notice

5. Planned overtime occurs when an officer is authorised to remain on duty and the officer is informed before, or at the beginning of, their rostered shift. Casual overtime occurs when an officer is authorised to continue working past their normal end-time and they are informed after they have begun their rostered shift. If casual overtime is worked, the duty state is noted to identify it as such. The stage of the officer’s shift at which casual overtime is authorised is not recorded.

There are a number of events that might occur during a shift where a need might arise for casual overtime. Examples include:

• Officers needing to remain on duty to process prisoners.
• Critical incidents requiring immediate responses to serious events or officers needing to work overtime to control a situation.

Table 2 shows the proportion of casual overtime hours worked by Business Groups as a proportion of planned overtime during Quarter 3 of 2010/11. This indicates that the vast majority of overtime within Business Groups is planned.

Table 2 - casual overtime worked by Business Group during Quarter 3

Control of overtime/h3>

6. 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 were set out in the Quarter 1 report. It should be noted that expenditure on Police Officer Overtime has been controlled effectively in recent financial years and, using cost figures re-based to 2010/11 levels to recognise the effects of pay inflation, there was a 22.5% reduction in overtime expenditure in 2009/10 compared to 2005/06 despite 6.9% growth in officer numbers over the same period. The forecast for 2010/11 states that, even after allowing for the impact of the recent and forecast public order demonstrations, this downward trend is expected to continue with a 34.9% reduction in annual expenditure over 2005/06. Table 3 demonstrates that the average cost of overtime per eligible Police Officer (Sergeants and Constables) fell by 27.5% between 2005/06 and 2009/10 and is forecast to fall by 38.5% compared to 2005/06 in 2010/11. This is further evidence of continuing management control over overtime.p>

7. 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 27% of overtime expenditure in Territorial Policing Borough OCUs is due to such holiday working, with 15% estimated in Central Operations, 11% within Specialist Operations and 5% in Specialist Crime. The higher proportion within Territorial Policing is a result of the nature of the overtime required.

8. The recent public order demonstrations have tested how we respond to such events in the future but the controls which cover the use of overtime will not be relaxed. Planning for such events will continue to provide as much notice as possible to officers to avoid incurring unnecessary overtime costs.

TabTable 3 - Average cost of overtime per eligible Police Officer

**Forecast as at end of quarter 3>

Operational impact of reductions in overtime

9. The reductions in overtime have affected different Business Groups in different ways. The main thrust of effort has been to deliver the same capability with a more rigorous management of cost.

Over this five year period Specialist Operations has had growth in officer numbers which have allowed the Business Group to decrease overtime with minimal operational impact. A further significant factor has been the absence of any large scale (National) Counter Terrorism operations since Operation Seagram in August 2007. This has allowed a more measured and objective approach to overtime management in SO, which has also supported the delivery of reductions.

Within Territorial Policing the reduction is more obviously felt in reduced corporate initiatives whilst Central Operations had been managing down use of overtime including that associated with Public Order (prior to the recent Student demonstrations).

10. 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 four quarters from 1 January to 31 December 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 (exempt) for Police Staff and Police Community Support Officers.

11. The exempt Appendix 2 shows a bar chart which provides details of numbers of Police Officers, Police Staff and PCSOs claiming overtime and the average number of hours claimed for the 9 month period to the end of December 2010. It should be noted that it does not include Officers that have not claimed any overtime during the year. This shows that the vast majority of Police Officers (82%) who have undertaken overtime, work less than 20 hours overtime per month, with 13% working between 20 and 40 hours per month.

12. 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 3. 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. In some instances, particularly relating to Police Staff, the payments relate to claims for overtime worked over a period greater than one month and do not accurately represent the overtime actually worked in that period. Advice has been given in these instances to ensure that claims are not unduly delayed and to ensure that the work-life balance and health and safety criteria is being adhered to.

13. 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.

14. Recent events have put pressure on delivering some of the earlier forecast reductions in overtime because of the increase in public order response. This has affected the ability to drive some of the future proposed planned reductions in Central Operations overtime within the 2011/12 budget. However, MPS 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.

Police Officer Overtime

15. Table 4 provides a summary of Police Officer Overtime expenditure compared to budget by Business Group for 2010/11 compared with 2009/10 and 2008/09. For comparative purposes the 2008/09 and 2009/10 figures have been adjusted to match the organisational structure for 2010/11 and have been rebased to 2010/11 levels to recognise pay inflation. This shows that, after reducing the overtime budget by £2m as part of the savings package agreed to meet the reduction in Home Office funding announced by the Chancellor of the Exchequer in May, the forecast 2010/11 outturn position is an overspend of £3.8m. Total expenditure is expected to be £21.3m less than in 2009/10 and £31.8m less than 2008/09.

TabTable 4 - Summary of Police Officer Overtime by Business Group

* figures re-based to 2010/11 levels to recognise pay inflation>

16. Explanations of the significant variances are summarised below for each Business Group.

17. Territorial Policing is forecasting an overspend of £0.7m which reflects strong management controls as part of the commitment to produce additional savings whilst maintaining operational effectiveness, particularly in light of the recent central London demonstrations.

18. Officers have worked in excess of 100 hours overtime per month due to a number of factors which included attachments to Operation Blunt and Safer Transport Teams, and providing cover to maintain 24/7 capability in the Central Communications Command.

19. Central Operations (including the Olympics Security Directorate) are forecasting an overspend of £2.2m this year as a result of the recent public order events in central London.

The 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 within the unit 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 are a limited number of operators due to the demands of firearms 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. Specialist Crime Directorate is forecasting an underspend of £1.2m despite carrying significant vacancies following the implementation of strict management controls. Overtime is used to cover operational requirements, in particular within the Sapphire OCU and the Met Intelligence Bureau (MIB). This is mainly due to high levels of operational activity coupled with the need to cover for vacancies. In particular the Telecommunications Intelligence Unit within MIB requires operational cover to ensure 24/7 operational capability.

21. 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.

22. Specialist Operations forecasts an overspend of £2.4m. 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 duties due to a number of high profile events including the General Election, visits by President Sarkozy and the Pope, have all resulted in increased overtime being incurred in the Palace of Westminster, Royalty Protection and Specialist Protection OCUs. These units have the most number of officers working over 100 hours. The overspend in overtime is more than offset by an underspend in Police Officer Pay resulting from the vacancies. The introduction of revised shift patterns within Diplomatic Protection has also assisted in controlling overtime expenditure.

Police Staff Overtime

23. Table 5 provides a summary of Police Staff Overtime expenditure compared to budget by Business Group for 2010/11 compared with 2009/10 and 2008/09. For comparative purposes the 2008/09 and 2009/10 figures have been adjusted to match the organisational structure for 2010/11 and have been rebased to 2010/11 levels to recognise pay inflation. This shows that the forecast 2010/11 outturn position is for an underspend of £0.6m and total expenditure is expected to be £5.9m less than in 2009/10 and £6.5m less than in 2008/09.

24. 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.

TabTable 5 - Summary of Police Staff Overtime by Business Group

* figures re-based to 2010/11 figures to recognise pay inflation

25. Explanations of the significant variances are summarised below for each Business Group.>

26. Human Resources is forecasting an underspend of £1.1m resulting from improved management control of overtime within Catering Services and Transport.

27. Territorial Policing forecasts an overspend of £0.7m, principally within the Central Communications Command, who have a significant number of vacancies, to maintain adequate cover to manage the high levels of activity and maintain 24/7 operational capability.

28. Specialist Operations forecast a minor overspend of £0.2m relating to the Palace of Westminster as recruitment is expected to be slower than expected in the contract resulting in overtime to cover vacancies, sickness and leave. These costs are reimbursed by the Palace of Westminster. The majority of the high earners are security guards working at the Palace of Westminster.

Police Community Support Officers

29. Table 6 provides a summary of PCSO Overtime expenditure compared to budget by Business Group for 2010/10 compared with 2009/10 and 2008/09. For comparative purposes the 2008/09 and 2009/10 figures have been adjusted to match the organisational structure for 2010/11 and have been rebased to 2010/11 levels to recognise pay inflation. This shows that the forecast 2010/11 outturn position is an underspend of £0.3m and total expenditure is expected to be £0.5m less than in 2009/10.

TabTable 6 - Summary of PCSO Overtime by Business Group

* figures re-based to 2010/11 figures to recognise pay inflation

30. The erspend is within Territorial Policing and results from improved management controls to ensure expenditure does not exceed the funding made available.

C. Other organisational and community implications

Equality and Diversity Impact

1. Equality Impact Assessments are completed on business group activities undertaken where there is deemed to be an impact. The equality and diversity implications are identified in business cases and reports on individual proposals through our normal decision making process.

Consideration of MET Forward

2. Met Forward recognises that the MPS has to make challenging financial decisions whilst minimising the impact on front line policing. This report sets out the position against the approved budget for overtime as included in the 2010-13 Policing London Business Plan which supports the strategic direction set out in MET Forward.

Financial implications

3. The financial implications are those set out in this report.

Legal implications

4. There are no direct legal implications arising from this report which is for information only.

Police Officers are paid overtime in accordance with the Police Regulations 2003 (“the regulations”) and the Secretary of State’s Determinations under those regulations, whilst contractual provisions will determine whether overtime is paid for all other police staff. Both officers and staff are however also bound by internal policy, which is set out in the relevant Standing Operating Procedures.

Environmental implications

5. There are none specific to this report.

Risk (including Health & Safety) Implications

6. Risk management is integrated into the Service’s budget, business planning and performance management processes. Business Groups and Management Board monitor risks on a regular basis. This report sets out the financial risks and pressures currently being managed by the Service in regard to overtime as well as recognising the health and safety implications for individuals and the MPS that can arise from unmanaged use of overtime.

D. Background papers

None

E. Contact details

Report authors: Nick Rogers, Director of Finance Services, MPS

For more information contact:

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

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