Offender Rehabilitation Bill [Lords]

Baroness Burt of Solihull Excerpts

Tuesday 14th January 2014 Commons Chamber

The Minister might think that our list of concerns is becoming a bit tedious, but the only reason the House has had the opportunity to debate these proposals is that Members of the Opposition and another place have forced the Government’s hand. We regret this enormously. The Government ignored the will of one House of Parliament when it asked for a chance to study the plans in depth, and then they voted to remove the amendment from the Bill in Committee. We hope to fare a little better today and that they will consider it appropriate and helpful to have parliamentary oversight of the future of this incredibly important public service.

[Lorely Burt (Solihull) (LD)]

On the pilot, some of us in the House expressed our concerns. I have now looked into the matter a bit further, and it seems that it would take three or four further years properly to conduct a pilot. Would that not be three or four years during which a continual problem would remain unaddressed?

[Jenny Chapman]

The hon. Lady might want to reflect that had the Secretary of State not cancelled the pilots already taking place, we might now have had a year’s worth—the pilots would not necessarily have to last three or four years—of evidence, information and lessons learned that might have proved invaluable to the Minister as he proceeded with his programme.

--- Later in debate ---

[Lorely Burt]

My understanding is that within the CRCs there will be skilled professional people whose job it will be continually to asses the risk factor of low and medium-term prisoners. Would that not indicate that those issues are being covered?

[Jenny Chapman]

I would hope that there will be someone working in a CRC who could assess risk. The point is that whenever we have a transition between organisations, there will be different systems. The relationships will not be so strong and there will be scope for communication failures and for information not to be passed on. That gets to the nub of the concern felt by us and by those working in the sector about where the problems will arise with what the Government are proposing.

The Government have made much of the fact that new and inexperienced providers will only manage those who are low and medium risk. But the Minister knows that low and medium risk includes offenders who have committed sexual assault, burglary, violence against the person, domestic violence and other quite serious offences. All of them will now be under the supervision of companies that have no experience of managing this kind of risk. Alarm over this lack of experience of providers is part of a wider concern not only that the proposal is not fit for purpose, but that some of these potential providers are not properly fit to deliver it either.

The Government are, I know, painfully aware of the MOJ’s record on procuring services and managing contracts. After the somewhat infamous saga—here is the mammal bit—of the language services contract, the PAC concluded that the Ministry of Justice

“was not an intelligent customer”

and the Chair of the Justice Committee reported that “serious flaws” were exposed in the Ministry’s procedures and policies and that the process was a “shambles”. The NAO concluded that the Ministry

“underestimated the project risks when it decided to switch from a regional to a national rollout”

and allowed the contract to be operational before it was ready. I do not need to spell out the extent of the risk to public safety if these sorts of failures are allowed to occur in this exercise.

Perhaps because of all these problems, Ministers have pinned all their hopes on the payment mechanism. They assure us that success is guaranteed because providers will be paid by results. But Members will recall similar claims being made about the Work programme, in which every provider started by failing to meet its targets. Ministers have also so far been unable to tell Members exactly how much of a fee will be paid by results and how much the provider will get up front, regardless of their performance. My hon. Friend the Member for Rotherham (Sarah Champion) made an excellent point in Committee, when she said that when universal credit had been bailed out the original structures were still in place to provide services that the reforms could not. There was at least some sort of continuity. Given that the Secretary of State is planning to abolish every probation trust in a matter of months, what will be in place to protect the public? Should a provider fail or the entire roll-out have to be halted because of poor performance, nothing would be in place.

The performance of providers and the very real concern about failure brings me to new clause 5, which deals with contract management. It is designed to ensure better performance from providers and much better management of contracts by the Ministry of Justice than we have seen in recent years. I know the Minister will accept that this is needed. Now we come to the bit about the rabbit! The MOJ paid for a rabbit to be licensed as a court interpreter—the commissioning car crash, as it was called, meaning the language service’s contract. The Chairman of the Justice Select Committee concluded that the Ministry’s naivety at the start of the process appeared to have been matched, once the new arrangements came into operation, by its indulgence towards underperformance against the contract.

We will disagree today on how well the Secretary of State and his Department can manage this kind of process, but I am sure that the Minister would agree with the Opposition Front-Bench team at least on the fact that we must not tolerate underperformance if and when these contracts come into force. We cannot allow these problems to happen again in the future. Neither the Ministry’s nor the Government’s records are particularly encouraging on this front. The Justice Select Committee in its review of the budgeting structure of the MOJ reported—astutely, I think—that the Department has a tendency to focus on policy creation rather than implementation. The recent independent review of MOJ contracting reported in December that there were long-standing and significant weaknesses in contract management at the Department. It found that the focus on contracts lessened significantly after the initial procurement and, in some cases, there appeared to be a lack of appetite for continuous improvement. The review concluded that opportunities to mitigate risks and optimise services were being missed.

We have seen first hand the damage done when the Ministry’s attention span fails to keep track of a contract. Our new clause 5 attempts to support the Government to get a bit better on that. Contracts for two major providers and potential failures in probation bidding are currently under investigation by the Serious Fraud Office, after the taxpayer was overcharged by millions for the tagging of offenders who were dead, had been released or, in some cases, had left the country. The prisoner escort contract with Serco has been referred for investigation by the Metropolitan police, and the Ministry’s own review of contracts has led to two more G4S contracts being referred to the SFO. It should not be necessary to mention how unhappy Members on both sides of the House would be if a company under investigation for fraud were to be permitted to bid to manage public protection, so I am sure the Minister will want to assure us that that will not be the case. So far, the Government have not done so.

Opposition Members have proposed a number of safeguards in new clause 5, which we believe should be included to improve the quality of the Government’s reforms. If the Government are hellbent on going ahead, new clause 5 would provide at least some kind of oversight and scrutiny for this House. We want them to pilot the proposals and seek parliamentary approval, which we have discussed. We tabled in Committee a number of measures to help improve the quality of contracts. These included ensuring that all providers of this key public service would be subject to freedom of information requests, that contracts would last for a maximum of five years so that a Government were not able to make decisions binding the entire Parliament that follows them, and that taxpayers’ money should be protected by the inclusion of break and clawback clauses in all contracts.

--- Later in debate ---

[Sarah Champion]

I agree that it is unacceptable that those people are not getting support now. I would like to go further and start their rehabilitation in prison. I would like there to be a complete system, so that when people come out they will be able to engage much better in society and will not reoffend.

[Lorely Burt]

Will the hon. Lady give way?

[Sarah Champion]

I should just like to tell the House what the hon. Member for Reigate said. After the probation service as a whole won an award for excellence in 2011, he stated:

“This prestigious award recognises the professionalism of probation staff and the excellence of their work. This very public recognition of not just what they do but, perhaps more importantly, how well they do it, will be a source of pride for probation staff.”

The existing probation trusts are doing an excellent job, and that is being recognised. They are not broken.

[Lorely Burt]

I do not think that anyone in the House would dispute the fact that the probation service does an excellent job. However, during the last 10 years of the previous Government, the cost of running the service rose by 70%. The hon. Lady says that she does not disagree with the use of private providers or with the aims of the Bill. Can she explain how on earth it would be possible to realise those aims without taking these steps?

[Sarah Champion]

Unfortunately, I cannot explain that, because the plans have not been put before us. I am therefore unable to scrutinise them or to change them to the degree that I would like. I am supporting new clause 1 because I would like the House to be able to debate those matters, but we are not being given the opportunity to do so.

Another assumption that is being presented to us is that probation trusts are failing to reduce reoffending rates, yet reoffending rates are falling. The latest statistics published by the Ministry of Justice show that the probation service reduced reoffending by a further 5% below the target figure. This continues the downward trend in reoffending rates witnessed over recent years, and reoffending by all adult offenders in the community subject to probation supervision is now at its lowest since 2007-08. The probation service has achieved that while making the considerable budgetary savings asked of it. In South Yorkshire, the figures are even better, at 12.77% lower than the target figure.

Reoffending rates are important, but they are not the only criterion for success in this area. The probation service can also boast that victim feedback has been positive in 98% of cases; that targets for completions on domestic violence interventions, and for court report timeliness, have been met and exceeded; and that completion targets were also met or exceeded on the vast majority of probation programmes. The probation trusts are doing a superb job, and they should be allowed to continue to do so.

Another assumption that keeps being mentioned in the debate is that the only way in which supervision for people serving a sentence of under 12 months can be afforded is through privatisation. However, the proposals will necessitate the wholesale reorganisation of the probation service and a lengthy and complex national tendering and contracting process, all of which will require significant investment before we even get to the meat of doing the job. There is huge concern over the lack of information on the cost of the proposals. We have asked for that information, but it has not been presented. Despite the publication of several impact assessments, the Ministry of Justice has yet to set out the cost of the reforms and the way in which they will be funded. This is a fundamental point. If we are expected to take this leap in the dark, at least we should be chucked a lifeboat so that we can get into it.

The current budget for probation is approximately £800 million a year, suggesting a 10-year budget of £8 billion. The House of Commons Library has broadly estimated that the 10-year value of outsourced probation would be between £5 billion and £20 billion. That is in addition to the budget for the remaining public sector probation service. That suggests that a significant increase in costs is being predicted, contrary to Ministry of Justice claims that the reforms are a cost-saving initiative. In addition, there would be the unknown percentage resulting from performance-related pay.

Now it starts to get surreal—not that it was not already. The Government say that the probation service cannot tender because of the performance-related pay aspect, so why do they not just drop that element? The probation trusts have been saying all along that they would like the opportunity to support people serving short-term sentences. They are clearly the best trained and most skilled specialist people to do that work, but they are not even being allowed to tender for it. I find it incredibly challenging that the main stumbling block to retaining the status quo in that area is that the Government will not drop the performance-related pay element.

I support new clauses 5 and 11, but other people want to speak so I shall not say any more about the companies that are tendering for the work. Nor will I go into the whole data protection issue that will result from state, private and voluntary organisations sharing information. My hon. Friend the Member for Darlington (Jenny Chapman) has already mentioned the logistics of reorganisation and the risks incurred during a transition period. Those risks are enormous. We are not talking about people not getting paid for a week. We are talking about people being out in the community without the necessary supervision, and the potential for the data to collapse around them so that we would not even know where they were.

In conclusion, new clause 1 would prevent the Government from being able to sell off or restructure the probation service unless their proposals had first been laid before, and approved by, both Houses of Parliament. The Government have not given Parliament any opportunity to scrutinise their plans to privatise probation, claiming instead that they can use existing legislation to push the plans through. The only time we have debated this topic is during Opposition day debates. That cannot be democratic. The way in which this has been handled has shaken me to the core.

--- Later in debate ---

[Lorely Burt]

I originally intended to make a full contribution at this stage, but a great deal has been said and I shall not detain the House by going over ground that has already been covered.

Let me make a point about the pilots in Peterborough and Southampton, which have had encouraging interim results. The hon. Member for Darlington (Jenny Chapman) suggested that pilots had been concluded and stopped, but the pilots for Peterborough and Doncaster have not been cut, and as I say the interim findings have presented encouraging results, although we will have to wait and see the full results. The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) asked whether the pilots were precisely comparable; notwithstanding that, it looks good.

I am not content to wait another four or five years to get the full results; we need to make progress now. I understand that the Opposition believe that there are flaws in the Bill, but I believe it will bring about a great improvement. I regret the fact that when in government, Labour made provision for a Bill but did not bring it into practice when it had the opportunity. We have wasted too much time already. The previous Government facilitated the legislation eight years ago, and now is the time to get on with the job. I am delighted to support my coalition colleagues in doing that.