Corporate report

Accounting Officer Assessment Summary: Debt Respite Programme

Published 1 November 2021

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start, or vary major projects, and assess whether they measure up to the standards set out in HM Treasury’s Managing Public Money guidelines. From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of a project within the Government Major Projects Portfolio (GMPP).

Background and context

The Debt Respite Programme is a significant undertaking which will enable HMRC to efficiently comply with its legal obligations in relation to the Debt Respite Scheme (without the need for onerous and expensive manual interventions). The business case for the Debt Respite Programme was approved by HMRC’s Investment Board and Change Investment Design Committee in February 2021.

The Debt Respite Scheme is a new government initiative which offers debtors legal protection from creditor action on qualifying debts. HMRC has a legal obligation to comply with the Debt Respite Scheme, and therefore needs to identify those debtors who enter the scheme, undertaking the appropriate actions, as set out below, rather than the standard debt collection processes. Failure to do so would put HMRC in breach of its legal requirements and fail to give debtors the protection to which they are entitled.

There are two elements to the Dept Respite Scheme:

• Breathing Space – from 4 May 2021: Gives those in problem debt up to a 60-day pause (unlimited for mental health-related applications) from creditor action while they receive debt advice

• Statutory Debt Repayment Plan (SDRP) – from 2024: Enables those in problem debt to enter a statutory agreement (via a third party) to repay their debts to a manageable timetable. It is expected that some customers will enter an SDRP after their Breathing Space period ends

Regularity

The programme enables HMRC to meet its legal requirements in respect of the Debt Respite Scheme. The expenditure on the programme is legal and regular. The programme continues to comply with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament on the Debt Respite Scheme. The Programme adheres to the relevant HM Treasury approval procedures.

Propriety

The Debt Respite Programme adheres to the HMT and HMRC Change Framework Governance and undertakes the appropriate assessments and reporting. The Debt Respite Programme is a proportionate response to enable HMRC to comply with its new legal requirements under the Debt Respite Scheme in a cost-effective manner, whilst avoiding the need for a more expensive entirely manual solution.

A Programme Board is established as the main decision-making authority and key internal and external stakeholders are represented. It is my assessment that there are currently no issues of propriety with regards to the Debt Respite Programme.

Value for money

Legislation enacting the Debt Respite Scheme is already in force, and the Government is committed to supporting vulnerable debtors through the scheme. The department therefore needs to ensure that it can comply with the law in a cost-effective manner.

Value for money has been assessed via a full options appraisal which has been documented in the programme business case. The preferred option for delivery offers the highest potential to meet critical success criteria and minimise delivery risks for HMRC, providing best value for money. The phased approach of the programme will allow elements of this to be incorporated into a sustainable longer-term solution developed in conjunction with anticipated changes to the broader HMRC IT estate.

HM Treasury will carry out a post-implementation review of the Debt Respite Scheme within 5 years of the scheme going live and will evaluate costs in relation to the estimates contained within its value for money impact assessment.

Feasibility

By implementing the first two elements of the Debt Respite Programme in May and June 2021, HMRC now complies with government policy and has negated the need for a wholly manual solution. All current milestones have been met, and the Programme is confident that all future milestones will be met. The Programme team is sufficiently resourced and has good leadership, and programme governance is robust and effective.

Conclusion

As the Accounting Officer for HMRC I have considered my assessment of the Debt Respite Programme, and on balance, the programme spend is value for money, regular, proper and deliverable, I have approved it as of 7 October 2021. I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifeline of this programme, I undertake to prepare a revised summary, setting out my assessment of them. This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Accounting Officer: Jim Harra, Chief Executive HM Revenue and Customs.

Date of signing: 7 October 2021