GovWire

Guidance: Government Debt Management Function

Cabinet Office

February 21
11:15 2023

About Government Debt Management Function (GDMF) and the centre for the function

The Centre for the Government Debt Management Function is a small team of debt experts who work with government departments to bring in billions every year in debt collection. The goal is to achieve fair debt outcomes for all, including those who pay on time and those who require additional support, whilst ensuring a proportionate response to those who avoid repaying.

The centre for the function provides deep expertise and strategic leadership for the wider GDMF, improves the management of debt owed to the government and delivers on the specific activities outlined in the sections below.

The Government Debt Management Function (GDMF) comprises c8,000 public servants who work across 20+ ministerial departments and Arms Length Bodies to resolve outstanding debt.

Good debt management is a key part of achieving the governments objectives for fiscal policy. When debt does arise, the government needs to deal with it efficiently and effectively. The function collects tens of billions every year which is used to pay for vital public services that UK citizens rely on, such as health, welfare and education.

What the centre for the GDMF does

We provide the expertise that enables government to achieve the vision of Fair Debt Outcomes for All. To achieve this we align debt management practices across government in order to:

  • Prevent individuals and businesses falling into problem debt by identifying and supporting the financially vulnerable;
  • Consistently resolve debt to agreed standards, pursuing those who avoid repaying and enforcing recovery where proportionate and appropriate; and,
  • Identify opportunities to improve governments capability to resolve debt efficiently and effectively.

The centre for the function works towards this vision and mission, as well as providing the expertise and leadership on the following specific activities:

  • Preparing, agreeing and distributing the Government Debt Strategy;
  • Developing, maintaining and providing assurance against the Debt Functional Standard (GovS 014);
  • Making recommendations to improve fairness in debt management practices;
  • Communicating recommended best practice across government;
  • Providing expert advice and support to government organisations;
  • Facilitating debt knowledge networks and user groups;
  • Building capability to ensure that government secures the next generation of passionate, knowledgeable and skilled debt professionals;
  • Gathering, analysing and reporting key debt metrics.

Government Debt Strategy

The centre for the function collaboratively developed and implemented the 2017-2020 and 2020-2023 Government Debt Strategies to create and fine tune a more consistent strategic approach to the management and resolution of debt across government.

The 2023-26 Government Debt Strategy is being developed to build on this, outlining the governments aim to further improve its approach to the resolution of debt owed to government

The Debt Functional Standard

The Debt Functional Standard was developed to set expectations for the management and resolution of debt owed to government organisations, helping achieve a consistent strategic approach and improve capability across government. Continuous improvement is driven through assessing organisational maturity against the Debt Functional Standard.

Debt Centre of Excellence

The Debt Centre of Excellence (DCoE) is a single point of access to professional and value for money debt services, and a central resource for information and advice. The DCoE supports Functional Leads to ensure government debt management capabilities are maximised, balancing this against the need to support vulnerable customers.

Building capability

The centre for the function is committed to building debt functional capability by professionalising debt management. This future vision includes recognising debt as a specialism and assuring professional standards through the delivery of bespoke accredited learning programmes.

Fairness Principles and Call for Evidence

The centre for the function established the Fairness Group in 2016 to recommend evidence based improvements to governments debt management practices. It is a partnership between central government, local government, the debt advice sector and industry experts. Its achievements include a joint public statement on fairness and helping develop a Call for Evidence on public sector debt management.

The Fairness Group Joint Public Statement sets out how the government works with the advice sector to support vulnerable families.

The centre for the function led a Call for Evidence to gather insights into how government can support vulnerable people in debt and most effectively manage debts stemming from fraudulent activity. A summary of responses to the document was published in February 2021 and its findings will inform future cross-government debt collection practices and be used as evidence in policy design.

The Fairness Group developed and published the public sectors first Vulnerability Toolkit and an Economic Abuse Toolkit to help frontline staff identify and support vulnerable people, and those experiencing economic abuse, who owe debt to the government.

Documents

Buying Services

The Debt Resolution Services supports the public sector to buy debt recovery and associated services including analytics, data, fraud and error, litigation and spend analysis services. This framework agreement by Crown Commercial Services is aligned with the Government Debt Strategy, which aims for a more consistent approach to ensure that taxpayers money is spent in the most efficient and effective way.

Debt and Money Advice (backed by the UK Government)

Published 8 April 2021
Last updated 21 February 2023 +show all updates

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