Privatised Probation System

Richard Burgon Excerpts

Monday 4th March 2019 Commons Chamber

[Richard Burgon (Leeds East) (Lab)]

(Urgent Question): To ask the Lord Chancellor and Secretary of State for Justice if he will make a statement on the future of the privatised probation system.

[The Minister of State, Ministry of Justice (Rory Stewart)]

I am pleased to be called to address this urgent question, and fully understand why the hon. Member for Leeds East (Richard Burgon) has raised it. As the House will be aware, we have been looking very carefully at the future of probation services, and this gives me the opportunity briefly to set out the Transforming Rehabilitation reforms, some of the challenges, and our response.

As the House will be aware, Transforming Rehabilitation was strongly influenced by a Labour pilot—the Peterborough pilot—which demonstrated that by bringing in non-state providers, concentrating on a cohort of short-sentence prisoners who had not previously been supervised and paying providers for reducing reoffending, it was possible to achieve significant improvements. Transforming Rehabilitation was a coalition Government commitment and built on those principles by contracting the private sector and others—in Durham Tees Valley, for example, that included the local authority—and undertaking to pay the providers if they were able to reduce reoffending. The contracts were left flexible to encourage innovation. This private model was applied only to low-risk offenders—high-risk offenders continued to be supervised in the usual way by the state. The new model has delivered in some ways, but as the National Audit Office has pointed out, it has not delivered in others.

There has been a reduction in the binary rate of reoffending, although there has been an increase in the separate frequency measure. Some 40,000 additional offenders are currently being supervised who were not supervised under the old system. Some innovation has come into the system, and it has saved the taxpayer money. Even though the hon. Gentleman would point out that through changes to the contracts, more money has gone in, we are forecast to spend significantly less than we originally anticipated—perhaps as much as £700 million less.

The programme was challenged by external factors, some of which were difficult to model and predict. For example, societal changes and different sentencing decisions by judges meant that the case load given to community rehabilitation companies shifted, and the accredited programmes that were allocated were fewer than expected. That meant that the income streams of those companies was less than anticipated. Broader issues such as drugs, housing and treatment programmes also made it difficult for providers to control all the factors in reoffending, which led to the companies losing significant sums of money. We have therefore taken a new approach that seeks to address all those problems.

We have just conducted a consultation and are carefully studying the responses. Our intention, first, is to remove the dependence in the new probation system on unpredictable case loads and to improve co-ordination with the national probation service. We are emphasising overall quality of service in future, not just the reoffending rate. We will be ending the existing contracts two years early. We will be setting minimum conditions for offender supervision, and we have invested over £20 million in through-the-gate services. Our objective, while retaining the benefits of flexibility and innovation, is to create a much higher-quality probation service that focuses on good-quality delivery and protects the public.

[Richard Burgon]

The National Audit Office report on probation privatisation is another damning indictment of the current Transport Secretary. Once again the Conservatives’ part-privatisation of probation has been exposed as a dangerous experiment that left the public less safe and out of pocket. The NAO highlights a 22% increase in reoffending. Will the Minister now admit that this privatisation has put public safety at risk in a reckless pursuit of running justice for private profit?

The NAO says the Ministry of Justice will pay at least £467 million more to failing private probation companies than was originally required. Does the Minister believe that rewarding failure in that way is the best use of much-reduced Ministry of Justice resources? Despite such failings, the Conservatives are recklessly planning to sign new private probation contracts. Will the Minister halt the current tendering plans to allow an independent review into whether probation should be returned to the public sector, or are they just ideologically driven?

Last month, Working Links, one of the largest probation providers, collapsed. Will the Minister explain the tendering process by which it was quietly handed to another private company? Will he guarantee that there will be no further staff losses under this new arrangement? Another private provider, Interserve, is in deep financial difficulties. Does the Minister have an emergency probation plan ready for if or when Interserve goes under?

Finally, private shareholders should be left in no doubt: Labour will return probation to the public sector. Will the Minister guarantee today that new probation contracts will include break clauses, so that a future Labour Government can put an end to this disastrous privatisation if his Government will not?

[Rory Stewart]

As you would anticipate, Mr Speaker, we do not feel that this is simply an ideological choice between the private and the public sector. There are things that we can learn from the private sector. There have been some significant improvements in the way that services are delivered and in IT. We must also remember that this is not just a question of the private sector. In certain areas, we are working with local authorities and the voluntary sector.

To address the specific challenges that the hon. Gentleman raised, he pointed out that the frequency rate of reoffending has gone up, but the binary rate of reoffending has in fact gone down through the course of these programmes. On the question of cost, it is true that more money has gone in, but it is still much less money than anticipated. Broadly speaking, we were anticipating that we would spend about £3 billion over the course of the contract. The companies committed to spend about £1.8 billion and the Government put in an additional £400 million. That still leaves us spending perhaps £700 million—something of that sort—less than we anticipated. So the public have spent less money than they expected to over the course of this programme.

The Kent, Surrey and Sussex Community Rehabilitation Company is a good provider and we are confident it can step in successfully, but we also have the national probation service working with it to ensure that it operates well in the Working Links areas.

On the broader issue that the hon. Gentleman raised about whether we have looked carefully at the lessons, we absolutely have. As I explained, we will make absolutely sure that we look very carefully at the consultation requirements and that anything we do in the future carefully learns those lessons, de-risks, focuses on quality, improves performance and protects the public.