1. Debt Centre Manchester

2. Debt Management Created in 2001, Debt management is part of the Dept for Work & Pensions ‘Shared Services’ It currently employs just under 3,000 people. Our operational units are based in 11 Debt Centres and two specialist units across Great Britain. The main aims of the Debt Management organisation are to: Support the Department in the reduction in losses from fraud and error in programme spend, by the efficient and effective collection of debt. Deliver a consolidated and accessible debt management and recovery organisation that provides a modern, flexible, professionally operated public sector financial service.

3. Process On discovery or notification of a change in circumstances, Jobcentre Plus or The Pensions Service will reassess the entitlement to benefit If the new benefit entitlements results in an overpayment the paying office sends the details via an E referral. This gives the Debt Centre all the information required to calculate the overpayment and make a recoverability decision. Electronic referral reduces costs in postage and enables tracking and sorting of referrals in a manner that was impossible with the old clerical procedure.

4. Registration Initially the E Referrals are captured on a spreadsheet for statistical purposes and then printed off and distributed to the Debt Evaluation Team. The Debt Evaluator scrutinizes the referral to ensure all relevant information included and enters the overpayment details on the Manual Account Loader (MAL) which is the initial stage of the Debt Management system. Any incomplete referrals returned to the benefit paying office at this point for more information.

5. Calculation & Decision The details from the E Referral are entered onto Debt Management Overpayment Calculator. This calculates the overpayment amount and period. The referral should have enough information to establish whether the overpayment is recoverable i.e.: was the Change of circumstances notified on time. At this point a decision is produced automatically on Debt manager, a notification is issued to the customer (ORG7) and the case proceeds to Recovery. If the case involves a sanction or multiple debts then a Specialist Decision Maker has to produce the recoverability decision. Once this has been done Debt Manager will again issue an ORG7 and then progress the case to Recovery.

6. Recovery – On & Off Benefit Recovery for customers who are in receipt of a benefit are managed by the Debt Manager system, usually by the calculating Debt centre. After the expiry of the dispute period a Recovery Agent will contact the customer to set up an Instalment plan (if the customer has not already contacted the DC first). If the customer is no longer on benefit the overpayment is referred to Debt Centre Salford who specialise in this type of recovery on a national basis. Again the recovery will be administered via the Debt manager system and an Instalment Plan will be set up.

7. Appeals & Reconsiderations Only Appeals & Reconsiderations disputing the ‘Recoverability’ of an overpayment are dealt with by Debt Management. All other areas of dispute i.e.: pay ability or benefit entitlement are dealt with either by Jobcentre Plus or the Pensions service – depending on the benefit involved. The Specialist Decision Maker scrutinizes each Appeal/Reconsideration and decides if the original decision on recoverability was correct. The Specialist Decision Maker can refuse to revise or alternatively increase or decrease the overpayment. Once the decision has been made, customers are notified in writing.

8. Complaints Process Debt Management has an escalation route for Complaints received from Customers, Third Parties and MPs, which operates in 3 stages.  Stage 1 is the initial contact stage.  Stage 2 is a second contact directly to the Debt Centre Manager.  Stage 3 is a third contact addressed to the Head of Debt.  Independent Case Examiner