Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to the oral contribution by the Minister for Defence Procurement on 20 December 2022, Official Report, column 150, what financial consequences his Department could place on Pinnacle Group in the event that the standard of maintenance of service family accommodation does not improve.

Pinnacle Group are not responsible for the maintenance of Service Family Accommodation. They are responsible for providing the National Service Centre, which families use to access services; prioritising response maintenance requests and passing them to Amey and VIVO; providing occupancy services (allocating SFA to families and supervising moves into and out of SFA); and for the management of complaints.

The initial six-month contract bedding-in period has now ended with Pinnacle Group. The Defence Infrastructure Organisation (DIO) will now be able to use the financial incentives and consequences in the contract.

Where appropriate, this will allow DIO to withhold Core Profit where average performance over the period has fallen below the agreed Acceptable Level of Performance without adequate mitigation.