(2 years, 2 months ago)Read Full debate
We changed CRC contracts earlier this year to better reflect the fixed costs that they were incurring. However, payments to CRCs are still below our original forecasts.
The answer to the right hon. Gentleman’s last question is that we expect them to use that money to improve the delivery of services and to match the best CRCs, such as Cumbria, which recently received a very impressive report from the inspectorate. We did not award the CRCs a specific sum, but agreed to alter the contracts in such a way that we accepted a greater proportion of their costs as fixed. The figure of £277 million that is in public circulation is an estimate of how that adjustment might increase the total contract value, but that is based on certain assumptions about volumes and payment by results, and I reiterate that payments will still be well within the forecast budget.