Annex C: Debt Management

1 Introduction

1.1 Our Business

Debt Management (DM) is part of the Group Finance Directorate’s Financial Services Division and provides a debt management and recovery service on behalf of The Department for Work and Pensions (DWP).

The main aims of the Debt Management organisation are:

• To support the DWP in the reduction in losses from fraud and error by efficient and effective collection of debt; and
• To deliver a consolidated and accessible debt management and recovery organisation.

Additionally Debt Management will comply with the guidelines set out in this Annex and those within the DWP Welsh Language Scheme where it impacts on DM business.

Debt Management currently operates over 120 units to deliver this service, 5 of which are in Wales. The service will subsequently operate from 10 centralised Debt Centres by 2005, one of which is located at Porth in Wales to service Welsh Customers.

1.2 Our Purpose

Debt Management is both a customer facing and a shared service, and exists to provide a debt management and recovery service on behalf of DWP.

Key priorities for Debt Management are:

• Increase in overall recoveries;
• Long-term reduction in debt stocks;
• Improvements in the financial control of the end-to-end process;
• Improvements in debt accounting and removal of audit qualifications; and
• Improvements in the overall efficiency of the Debt organisation through the establishment of Debt Centres.

In order to deliver Debt Management’s vision of ‘excellence in debt management’ the organisation is undertaking a significant programme of change. The Debt Programme was initiated in response to Ministers, the National Audit Office and the Public Account Committee regarding the management of debt by the former DSS. The current debt stock is in excess of £1 billion and rising. The Programme’s strategy seeks to modernise debt management and debt accounting through the introduction of organisational structures and new management information systems. Key objectives include:

• Implementation of the Optimum Model for debt management;
• Compliance with accounting standards and audit requirements;
• Increased overpayment recovery and reduction in debt balance outstanding;
• Improvements in customer service to debtors;
• Improved business and financial controls;
• Increased efficiency and reduced unit cost of overpayment recovery.

1.3 Organisation

• Debt Management’s current services include: management and recovery of benefit overpayments. Overpayments are derived from referrals received from client organisations, primarily Jobcentre Plus and The Pension Service.
• Collection of maintenance payments falling outside the jurisdiction of the Child Support Agency.
• Financial management and accounting service for debt across the DWP.

Centralised specialist operations include:

• Recovery from Estates
  This unit recovers overpayments arising from undisclosed assets discovered after death, estate recovery of already existing overpayments and collection of compensation awarded to DWP through magistrates’ courts.
• Recovery Group Scotland
  This unit makes off benefit recovery of overpayments and Social Fund loans submitted by Scottish Offices, collection of compensation paid through Sheriffs courts and recovery of overpayments and Social Fund loans after death.
• Compensation Recovery Unit
  This unit recovers amounts of benefits paid as a result of injury, accident or sickness where there is a subsequent duplicate compensation payment. It also recovers costs incurred by NHS hospitals for treatment of injuries arising from road traffic accidents.
• Central Recovery Group
  This unit has three main functions. It makes recovery of overpayments where Customers are not in receipt of an appropriate Benefit, recovers Social Fund loans appropriate for civil proceedings and collects maintenance payments that do not fall under the jurisdiction of the Child Support Agency.

Debt Centre Rollout

The organisation and structure of Debt Management is undergoing significant change, in particular the consolidation of a disparate organisation into a professional financial service. Key to this strategy is the establishment of 10 dedicated Debt Centres to replace the current units.

Within the overarching Debt Programme, the Debt Centre Implementation Project (DCIP) has been set up to implement 10 Debt Centres. The implementation plan will encompass an iterative rollout of Debt Centres for completion in 2005. Debt Centre Porth will manage Welsh Government Office Region debt.

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2 Delivery

2.1 New Policy and Initiatives

Debt Management will endeavour to ensure that both Welsh and English languages are treated equally during the planning and implementation stages of all new policies and initiatives.

Debt Management will aim to offer all those who come into contact with our organisation a comparable service regardless of their preferred language.

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3 Dealing with the Welsh speaking public

3.1 Impact on Our Customers

Debt Management Customers are mainly impacted during the legal recovery of overpayments.

• There are no public Debt Management counter facilities.
• Contact is primarily by written communication in the first instance, with ensuing contact by telephone and further letters as appropriate.
• Facsimile and email are also used where appropriate.
• In all cases where the Customer has expressed their preferred language to be Welsh we will issue all subsequent correspondence in Welsh.

3.2 Communications

Debt Management will seek to ensure that all those who interact with the organisation (in writing, by telephone, email, the Internet and any other medium) are able and encouraged to do so equally in Welsh or English.

3.3 Written Communications (including electronic communications)

Debt Management Units in Wales

• All correspondence received in Welsh from customers in Wales will be answered in Welsh within comparative timescales as those written in English.
• Members of the public in Wales will be welcome to correspond with Debt Management in the language of their choice (English or Welsh).
• We aim to provide our full service to Welsh language customers.
• A list of Welsh speakers within offices will be available to support this.
• Guidelines will be available for staff, with Welsh Language Act awareness included in the staff induction package.
• Staff induction will positively welcome Welsh speaking candidates to support delivery of the scheme.
• Letter and facsimile heads will be bilingual where we are contacting customers who live in Wales.
• Where we have had to issue computer produced letters in English only, we will issue subsequent letters in Welsh where so requested.

Centralised Debt Management National Units outside Wales

• We aim to provide appropriate service in Welsh.
• Where we are unable to service Welsh language requests locally, we will utilise the services of Debt Management Welsh offices or DWP Units including the Welsh Language Unit.

3.4 Telephone communications

Debt Management Units in Wales

• Members of the public in Wales will be able and encouraged to converse with Debt Management in the language of their choice.
• Switchboard and ansaphone initial responses will be bilingual.
• Where there are Welsh speakers within our offices, we will answer initial direct line telephone customer contacts bilingually.
• When a member of staff is unable to progress further than the salutation in Welsh, the call will be transferred to a Welsh speaking staff member at the same office wherever possible.
• Where we are unable to service Welsh language requests locally, we will make use of DWP Units including the Welsh Language Unit to do so by call back.

Centralised Debt Management National Units outside Wales

• We aim to provide appropriate service in Welsh.
• Where we are unable to service Welsh language requests locally, we will make use of the services of Debt Management Welsh offices or DWP Units including the Welsh Language Unit to do so by call back.

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4 Implementation and monitoring

4.1 Staffing

• Debt Management aims to provide our full service in Welsh. In order to achieve this, a list of Welsh speakers within offices will be available.
• Guidelines will be available for staff, with Welsh Language Act awareness included in the staff induction package offered to staff located in Wales.
• Staff recruitment will positively welcome Welsh speaking candidates to secure the achievement of the aims set out in this Annex.
• Welsh language requests made to offices located outside Wales will be serviced through the use of Welsh speaking staff located in Welsh offices, where appropriate.

4.2 Learning Welsh

Debt Management is committed to encouraging and supporting members of staff located in Welsh offices to learn Welsh or improve their ability to speak Welsh, to assist the business in meeting the commitments within this Annex.

4.3 Recruitment

• The ability to speak Welsh and English will be regarded as one of a range of skills to be considered when appointing staff in offices located in Wales.
• Welsh language skills will be highlighted as a factor which will be taken into consideration in advertisements for Debt Management vacancies located in Welsh offices.
• External recruitment exercises for Debt Management vacancies in Welsh offices will be advertised in both Welsh and English in the press.

4.4 External Contractors

• Any service which Debt Management provides in connection with its business in Wales where agents, consultants or contractors are involved will similarly aim to meet our set standards as set out in this Annex.
• Debt Management will stipulate, in its tendering documents to external providers, the mandatory requirement to fully comply with the DWP Welsh Language Scheme and the provisions set out in this Annex.

4.5 Monitoring

• Overall responsibility for ensuring that Debt Management honour the commitments set out in this document rests with the Head of Debt.
• Auditable trails of compliance action taken will be retained in line with DWP document retention guidelines.

On an annual basis a monitoring and compliance assurance report will be submitted to the Head of Debt. This will:

• Be developed from ongoing management monitoring with an assurance from each Senior Operational Manager with responsibility for Welsh units or centralised national units dealing with Welsh customers;
• Confirm that standards within the DWP scheme and this Annex have been followed;
• Identify exceptions where standards have not been met and resulting compliance action; and
• Enable an annual exception report to be completed where required by The Permanent Secretary or The Welsh Language Board.

4.6 Grievances / Complaints

• Any and all complaints about the Welsh language service provided by Debt Management will be able to be made through normal channels.
• Such complaints will be dealt with in the same manner, and be resolved within the same timescales as other complaints regarding Debt Management service provision.
• Complaints and grievances regarding failure to comply with the measures set out in the Scheme and this Annex will be dealt with by the appropriate manager in line with DWP guidance. Initially, this will be by local management with normal escalation procedures where appropriate.

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