Mark Whitehead 23 November 2018

Capita to pay council more than £4m for poor performance

Outsourcing company Capita has agreed to pay more than £4m compensation to Barnet Council for its poor performance - but will continue providing services until at least next year.

A report to the Tory-run authority's urgency committee says the payback will settle 'historical commercial issues, including delivery of IT improvements in adult social care and delays in delivering housing on council land.'

The council will also end the current gainshare arrangement so that it will keep all the savings achieved through better procurement – last year amounting to £2m.

It plans to take finance and strategic HR services back in house by April next year and consider the future of other outsourced functions including land and property, highways, regeneration, strategic planning and cemeteries and crematoriums.

The latest decision follows conviction for fraud of a former employee of a joint company set up by the council and Capita, 38-year-old Trishul Shah.

The joint venture was denounced by Labour as a 'textbook example of why outsourcing fails'.

The report by Grant Thornton following an investigation said the council had insufficient oversight of the joint company which 'gave the individual access to cost centres on the ledger for illegitimate purposes'.

Commenting on the latest decision, council leader Richard Cornelius, said: 'While the contracts with Capita have saved millions of pounds a year, there are some services which have not been up to scratch.

'What’s important is that we take action and taxpayers can be confident we are managing their resources effectively. Agreeing this settlement payment represents a good deal for the council.'

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner