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Community Rehabilitation Company Contracts
Exerpts for David Hanson
Tuesday 31 October 2017

(2 years, 2 months ago)

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Commons Chamber
Ministry of Justice
David Hanson (Delyn) (Lab) Hansard

19. What recent changes his Department has made to community rehabilitation company contracts. [901531]

The Lord Chancellor and Secretary of State for Justice (Mr David Lidington) Hansard
31 Oct 2017, 12:16 p.m.

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.

David Hanson Hansard
31 Oct 2017, 12:16 p.m.

I am grateful for that answer. Will the Lord Chancellor and Secretary of State publish how much additional resource he has given to CRC companies in total, which CRC companies have received that additional resource, and what he intends them to do with the product they have been given?

Mr Lidington Hansard

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.