Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the Department for Education:
To ask the Secretary of State for Education, how many contracts signed by her Department with suppliers of services or consultants include a clause providing that if the contract is abrogated by the Government, the provider or consultant will be compensated for lost income since 2010.
Answered by Nick Gibb
The information requested is not held centrally. An answer could only be provided at disproportionate cost, as we would need to review all departmental contracts.
It is the Department for Education’s usual policy that contracts include a mutual, no faults termination clause which allows either party to terminate a contract by giving a period of notice. If the Department terminates such contracts under the ‘no faults’ clause we would reimburse the contractor for any committed or unavoidable cost, and would expect the contractor to take mitigating action to reduce such cost.