Police overtime

Report: 08
Date: 13 February 2003
By: Commissioner

Summary

This report describes the work undertaken, in liaison with the MPA Treasurer and Her Majesty’s Inspectorate of Constabulary (HMIC), to meet the Police Negotiating Board (PNB) requirements to reduce overtime working. The calculation of the budget ‘baseline’ and the resulting target reduction in overtime budgets over the next three years is also included in the report.

The report includes an assessment of the operational impacts of such a reduction over the next three year’s, coupled with the pressures on the MPS to grow in police numbers. MPS Management Board’s concerns over these conflicting impacts, together with the rationale for the MPS to be considered as a special case, are explained.

A. Recommendations

The Committee is recommended to

1. note that an additional police overtime saving of £1.247m would be required in the 2003/04 budget submission to meet a 5% saving towards the PNB three year target requirement, together with further savings of £3.5m in each of the years 2004/05 and 2005/06.
2. note that any further reduction in police overtime will result in severe, adverse operational impacts, and dramatically limit the operational flexibility of local police commanders.
3. agree that there should be no further reduction in the police overtime 2003/04 budget over and above the £2.5m already agreed by the MPA in December 2002.
4. agree that further discussions should be held with the HMIC to seek agreement to the MPS’s special position with respect to a reduction in police overtime.

B. Supporting information

Introduction

1. An interim report on the issues to be addressed in meeting the requirements of the PNB Circular for reducing police overtime was reported to Finance Committee on 16th January 2003, and Human Resources Committee on 6 February 2003.

Requirements of the PNB circular

2. As part of the ongoing police reform proposals a Circular (No. 02/18) has recently been received from the Police Negotiating Board (PNB) setting out agreement to reduce the level of police overtime over the next three financial years to improve police officers’ work/life balance.

3. One of the major elements of the Circular is a target reduction in police overtime, over a three-year period, of 15%. Whilst the setting of the baseline is expressed in financial terms the over-riding objective of the Circular, and the key management issue to be addressed by the MPS, is the management of police officers’ working time.

4. The MPA is required to agree the baseline calculation and set target budget reduction in conjunction with the MPS, and with the HMIC.

Liaison with HMIC and MPA Treasurer

5. The approach to setting the baseline and target reductions has been discussed with the MPA Treasurer, who has endorsed the proposed financial approach to be adopted.

6. There have also been several informal and lengthy discussions held with representatives of HMIC by the MPA Treasurer and officers of the MPS to explore the approach to be adopted in the setting of the baseline and target reductions.

7. The outcome of these discussions has been an agreement in principle that the additional overtime associated with inflation, growth in officer numbers, and specific grant funding for purposes associated with overtime working should be excluded from the baseline and reduction targets.

8. A detailed scrutiny of the baseline and target calculations etc. is proposed to take place over the next few weeks. HMIC are comparing the approaches of different forces to the PNB circular requirements across England and Wales to ensure a broad consistency. Some variations between police authorities are anticipated in light of specific local circumstances.

Calculation of budget baseline and target reduction

9. Appendix 1 sets out the calculation of the baseline budget. The calculation is based upon the actual level of overtime expenditure during 2001/02, but then adjusted for:

• Exceptional spending as a result of the events of September 11th 2001 and Operational Strongbox which was additional overtime activity specifically funded by the Home Office
• Rostered Public Holiday working (specifically excluded in accordance with the PNB circular)
• Seconded officers to other policing authorities and functions e.g. NCS, NCIS etc. (specifically excluded in accordance with the PNB circular)

10. The resultant figure, gives an indicative 15% saving of £9.9m (at 2001/02 outturn prices), or £10.5m at 2003/04 outturn prices. Assuming an even reduction over three years, this would equate to a saving of £3.5m in each of the years 2003/04, 2004/05 and 2005/06.

11. Appendix 1 also sets out the indicative 2003/04 total police overtime budget, adjusting for the effects of the PNB requirements. The computation of this figure is further described below:

• Base Budget. This opening ‘base budget’ for 2003/04, but at 2002/03 outturn prices. This figure includes public holiday working and secondees’ overtime as the MPS needs to budget for these sums
• Inflation. This adjusts the base budget to estimated 2003/04 outturn prices i.e. the price base for all the 2003/04 budget
• Officer growth 2002/03 – full year effect. This is the amount of additional overtime associated with the full year effect of increased police officer numbers in 2002/03
• Officer growth 2003/04 – part year effect. This is the amount of additional overtime associated with the part year effect of increased police officer numbers in 2003/04
• Specific grants. The amount of Home Office specific grants that have been notified as part of the Local Government Finance Settlement that are planned to be spent on police overtime in 2003/04
• Baseline reduction as calculated in first part of Appendix A
• Total police overtime budget 2003/04, after baseline reduction

12. In summary, the impact of the PNB requirements is to require a further cut of £1.247m in police overtime in 2003/04. This figure is over and above the £2.5m already agreed by the MPA in December 2002, and included in the budget submission to the GLA.

Operational impacts of PNB target reduction

13. There are serious concerns within the MPS that a further series of reductions in police overtime over the next three years will adversely affect operational performance.

14. Police overtime has been proven to be an extremely effective management tool in improving operational efficiency. Indeed one of the core issues of the current ongoing Fire Brigade dispute is a desire by the employers to introduce overtime working to improve the efficiency of the service.

15. The work the MPS has undertaken, and continues to develop, in providing international comparisons and benchmarks with cities such as New York has identified that a major factor in operational effectiveness is the level of overtime resources.

16. The MPS is leading the way on national campaigns such as Safer Streets etc. The ability of local operational commanders to make significant performance improvements in this way relies on the flexible use of their officers that overtime working permits. Reducing core police overtime working by 15% will have a commensurate reduction in operational flexibility.

17. Since the events of September 11 2001, there has been an unprecedented increase in the level of terrorist activity, and the necessary policing response. The unpredictable nature of terrorist activity, and the type of policing duties undertaken to counter this threat requires the flexibility of overtime working.

18. Police overtime can be proven to offer better value for money than simply increasing officer numbers. Overtime is unaffected by sickness, annual leave, training and other similar non-operational abstractions. The new Operational Policing Measure will be able to demonstrate this effect in greater detail, but provisional data has shown wastage for non-operational reasons to be as high as 26% of an officer’s normal time.

19. Whilst additional police numbers are an essential ingredient in the fight against crime, the speed of growth anticipated will in itself bring greater overtime demands in the short term. Apart from the obvious operational exigencies that negate a ‘nine to five’ role, the increasing number of inexperienced officers is requiring greater supervision and oversight by fellow officers. This type of mentoring requires the flexibility of overtime working to be successful.

20. The PNB have accepted that a force that is understrength can justifiably increase its reliance on overtime working until the recruitment of officers has taken place. The MPS has seen a significant cut in officers in recent years, and has consistently argued that only a growth in officer numbers to 35,000 would enable it effectively deal with crime levels in the capital.

21. Therefore, it is justifiable to argue that the MPS is currently under strength, and will not be in a position to reduce its reliance on current overtime levels until this number of officers is achieved. Indeed a reduction is taking place as officer numbers increase. The last report to this Committee demonstrated that individual officers are undertaking less overtime as increased numbers begin to feed through.

22. For the reasons outlined above, MPS Management Board have major concerns over the impact of the PNB requirement, and believe that dialogue should continue with the HMIC. This dialogue will be on the basis that London is different from the rest of the UK, with unique needs and circumstances that should be separately considered.

C. Equality and diversity implications

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

D. Financial implications

The detailed financial implications are as set out in the body of this report.

E. Background papers

• Finance Committee report,16 January 2003
• HR Committee report, 06 February 2003
• PNB circular 02/18
• PNB guidance ‘Managing Overtime’ December 2002
• HMIC guidance ‘Managing Overtime’ December 2002

F. Contact details

Report author: Martin Chatfield, Head of Corporate Finance, MPS.

For more information contact:

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

Appendix 1

Police Overtime

Calculation of baseline and target reductions

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