External Private Contractors: Government Use and Employment Debate

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Department: Cabinet Office

External Private Contractors: Government Use and Employment

Mark Pritchard Excerpts
Wednesday 21st October 2020

(3 years, 5 months ago)

Westminster Hall
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Paula Barker Portrait Paula Barker
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Sadly, I concur with the hon. Gentleman’s observations. Covid-19 has brought into sharp focus the inequality between the sick pay provisions of civil servants and those of outsourced workers employed on civil service contracts.

Through PCS talks during covid-19, most civil service departments adopted a policy of paying their outsourced staff full pay for covid-19-related absences until the end of June 2020. From July 2020, Cabinet Office guidance was updated to allow the arrangement to continue where appropriate. As part of PCS’s campaign to defend and extend the right to full sick pay, it wrote to the Prime Minister in June, setting out the case for all outsourced Government workers to be paid full sick pay from day one. Disappointingly, there has been no response.

Does outsourcing facilities management services achieve social value? The simple answer is no. Section 1(3) of the Public Services (Social Value) Act 2012 requires a public sector authority to consider how a procurement

“might improve the economic, social and environmental well-being of the relevant area”.

When awarding central Government contracts, the Cabinet Office is obliged to consider the wider social benefits of procurement to ensure that cost does not override other Government considerations.

I want to take the opportunity to thank you, Mr Pritchard, for overseeing today’s debate. Let us move forward by initiating an open, frank and honest debate, with which I hope the Government will actively engage in the coming period. Value for money is not always delivered by the current procurement and outsourcing arrangements. For a Government who claim to pride themselves on hating waste, the reality is that nothing could be further from the truth.

The Government should be ambitious and see what services can now be brought back in-house. Fundamentally, the truth remains that when workers are paid properly and valued, productivity is better. After a long, difficult year for so many workers, the Government have often waxed lyrical. It is high time that politicians clearly show whose back they have—the cleaners, the contact tracers, the security staff and all manner of low-paid staff, or the directors of outsourcing companies.

Mark Pritchard Portrait Mark Pritchard (in the Chair)
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I am going to set an informal time limit of three minutes, but if colleagues could be a bit quicker we might have some time for a two-minute reply later. Obviously, there are five minutes for the Scottish National party spokesman and the shadow Minister, and 10 minutes for the Minister. Thank you for your co-operation.

--- Later in debate ---
Julia Lopez Portrait Julia Lopez
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I do not think I have time to give way. Mr Pritchard, what time does the debate finish?

Mark Pritchard Portrait Mark Pritchard (in the Chair)
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The debate will finish at 5.41 pm.

Julia Lopez Portrait Julia Lopez
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I want to leave time for the hon. Member for Liverpool, Wavertree to respond, so I will not give way.

There will always be situations where it makes sense to use contractors, working alongside our high-quality civil servants, to deliver specialist advice and services and to tackle short-notice urgent requirements where the civil service does not have sufficient capacity. We also need to reverse the trend we have seen over recent years, which has eroded civil service capability and led to an over-reliance on consultants and other contractors.

Hon. Members raised a number of other issues today about outsourcing and I am happy to take them away. I thank the hon. Member for Liverpool, Wavertree again for her thoughtful contribution.