Mark Whitehead 23 November 2018

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

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

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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Service Manager - Children in Care

Pembrokeshire County Council
£46,514 - £48,412
The successful candidate will need to be able to manage a large number of competing and at times conflicting priorities, whilst... Pembrokeshire (Sir Benfro)
Recuriter: Pembrokeshire County Council

Neighbourhood Services Divisional Manager

Northumberland County Council
£60,253
You will provide professional and technical advice on all Neighbourhood Services functions. As an effective leader you will coordinate and manage... Northumberland
Recuriter: Northumberland County Council

Associate Educational Psychologist

Essex County Council
Negotiable
Essex County Council (ECC) is one of the largest and most dynamic local authorities in the UK, serving a population of 2 million residents, and has a England, Essex, Chelmsford
Recuriter: Essex County Council

Chief People Officer

Haringey London Borough Council
Up to £115k
It’s a broad and exciting role where you’ll have the chance to tackle complex, wide-scale change. Haringey, London (Greater)
Recuriter: Haringey London Borough Council

Social Work Assistant – Multi Agency Safeguarding Hub (MASH)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£22,377 - £23,607 per annum
As a Social Work Assistant you will be involved in contributing to assessments of children and their families, providing support and guidance to... Bexleyheath, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue