Trying to make sense of easyCouncil and Capita?????

Barnet Council entered into two large outsourcing contracts with Capita in 2013. Six years later there has been a serious fraud and the services are not up to standard.

Who is saying this?

The Council both the staff who use Capita services and the staff that commission Capita services.

A year ago the Council announced a large number of services were to be brought back in-house yet a year on only a few have made it across the line.

On Monday 17 June 2019, Barnet Council gave Capita the thumbs up for both contracts.

You can read more about the Capita contracts here on the Barnet UNISON website

https://www.barnetunison.me.uk/wp/

Another Capita Pension Service Fail!

The reports on data quality issues with the Capita Pension Administration Service based in Darlington have been many.

I noticed that there is another Data Quality Report submitted for the Pension Fund Committee, on Thursday 30 May 2019

(See here https://barnet.moderngov.co.uk/documents/s52720/Data%20Quality%20Report.pdf )

It reminded me of the Open Portal web site all members of the Council Pension Scheme had access to before Capita took over.

It was taken down in 2014 with a promise that it would be back up soon.

It’s 24 May 2019 and it is not available and worrying Capita seem to think it was not in the contract to provide such a portal.

Whenever I need to check out the contract there is only one person to contact and that is Barnet Blogger Mr Reasonable I contacted him because I was convinced it must be in the contract and literally five minutes later he sent over the relevant section in the Capita contract.

The specific requirement can be found in the HR Method Statement (which is attached as a PDf document)

Final_HR_Method_Statement_Mar2013_Capita_redacted (1)

Scroll down to Page 30, paragraph (emphasis mine)

 2.8 PENSIONS ADMINISTRATION / OUTPUT SPECIFICATION REF: HR008

“Members will also have access their pension information via the web portal. This on-line service gives the members the facility to perform ‘what-if’ calculations, view and update their personal information including nominees. Benefit statements and other scheme documentation will be available for current and deferred members. Pensioners will have access and be able to view all their payslips and P60s.”

I can’t even begin to explain how useful this would be for members of the Pension Scheme, ironically if this had been implemented it would have saved resources for Capita.

Have I notified the Council?

Yes, I have raised this immediately with the Council.

I have two questions.

  1. When will Barnet Council hold Capita to account and insist the above web portal is put in place immediately?
  2. Why is the Council continuing to accept failure from Capita in particular why is not the Pension Service being brought back in-house.

At this moment of publication Capita are still providing our Pension Service and their Share Price is £1.05 p a share. See below 

Another Capita Failure in Barnet, Payroll this time…………

 

Late Friday afternoon 27 April 2019 Barnet UNISON were contacted to say that Barnet Council staff who had previously opted out of the Council Pension scheme had been enrolled back in.

Whilst Barnet UNISON supports and encourages members to join the Council scheme, workers do have the lawful right to opt out.

Barnet Council must obey the law and in this case this means they must auto enrol workers into the Council Pension Scheme. However, they must give notice to the worker and advise them of their right to opt out.

This did not happen.

What happened?

  1. Members on the Audit Committee were told that Capita Payroll only found out at the last minute (Friday 26 April 2019) that an auto enrolment programme had been set up to auto enrol those workers who had previously opted out of the Council Pension scheme.
  2. Members on the Audit Committee were told that 170 workers were auto enrolled into the Council Pensions Scheme which meant they had pay deducted from their wages.
  3. Members on the Audit Committee were told that although the workers had pay deducted they had not been auto enrolled.
  4. If this is true, it must follow that Capita’s auto enrolment procedure failed. Auto enrolment is directed by legislation. Barnet Council must auto enrol staff every three years, unless staff sign a form to opt out. This incident has exposed another Capita system failure which needs to be addressed immediately.
  5. Members on the Audit Committee were told that the workers contributions which had been deducted would be paid back to the 170 workers on Friday 3 May 2019.
  6. Members on the Audit Committee were not told if employer contributions were paid and if so where did the money go. However, if the employer contributions were not paid, why not? Is this another system failure?

Further Questions

  • Have Capita Payroll in Carlisle auto enrolled Barnet Council school staff?
  • If not, why not, as they are the same employer?
  • Why were Councillors auto enrolled by Capita as Councillors have not been eligible to join since 2014?

Barnet UNISON comment:

You really have to be in a Council meeting to believe what happens. Year after year different Capita managers roll up to give excuses and make promises that the latest service improvement plan will improve the services.

What is unbelievable is that Councillors are still accepting this serial offending.

All the while Capita are raking in the millions from Barnet Council.

We are in Year Six of a Ten Year contract and the two Capita contracts have cost £145 million pound more than they were originally contracted to be paid.

 

You mean Capita actually use SAP????

 

What is SAP?

 “An important factor is to develop mechanisms to support service areas in developing their efficiency and the corporate capacity of the council. One way that this is being done is by implementing corporate frameworks to allow better ways of working. For example, modern core systems for finance, HR and procurement and a new technology infrastructure to support all technological advances. This dovetails with service planning where the Information Systems service engages with service areas to identify opportunities for development.” (Source: Cabinet ICT Committee 14 September 2005

https://barnet.moderngov.co.uk/CeListDocuments.aspx?CommitteeId=0&DF=14%2f09%2f2005&MeetingId=335&Ver=2 )

Clear as mud? 

The implementation of SAP involved serious changes for hundreds of staff and included redundancies. As with many IT projects the original cost of SAP quickly escalated as local Blogger Mr Reasonable wrote “How a £2.5 million project ended up costing £21 million – Why we need to learn the lessons.”

You can read the whole sorry tale on his blog here

https://reasonablenewbarnet.blogspot.com/2011/04/how-25-million-project-ended-up-costing.html

Incredibly, after spending so much money on SAP, the Council entered into a contract with Capita in 2013 and as a consequence Capita replaced SAP and provided Barnet Council with Integra and HR Core.

Barnet UNISON can report that very soon after the replacement systems were implemented staff started experiencing problems. Five and half years into the contract and our members are still not happy with the systems.

Imagine my reaction when I found out that Capita use SAP.

So, it was ok to remove IT systems which cost Barnet Council upwards of £21 million with what appears to be an inferior product, but Capita choose to use SAP.

How does that work?

Why are the Council not asking for SAP to be restored at no cost to the Council?

I am often heard saying “You couldn’t make this up” when talking about issues that come to our Barnet UNISON office.

This is yet another sorry tale of how adherence to the mass outsourcing easyCouncil ideology has led to bad decisions for services, staff and residents and none of those who drove these changes through are around to answer the questions.

 

No, it is not an April Fool, Capita staff are coming back in-house!

On Monday 1 April 2019 Capita staff working in Strategic Human Resources (HR) and Finance services will return back in-house.

This follows a decision made at Policy and Resources Committee 11 December 2019 to start a review of which services should be brought back in-house.

Finance and HR were identified in Phase One to return back in-house.

Below are the details of the other Phases and the service included.

  • Phase Two: Highways & regeneration
  • Phase Three: Estates, Social Care Direct, Safety, Health and Wellbeing, Strategic planning, Procurement, Insight, Cemetery and Crematorium, Revenues and benefits
  • Phase Four: Customer services, Information Services (IT), Planning (development management and enforcement), Regulatory services, Transactional HR services (including Payroll and Pensions Administration), Any other remaining services.

You can read more details of reasons for the Capita Review by clicking on link below.  https://barnet.moderngov.co.uk/documents/s50134/Review%20of%20Capita%20Contracts.pdf

Barnet UNISON has demanded that all of the above services are brought back in-house citing Southampton, Blackburn and Darwen, Sheffield and Birmingham Councils who in 2018 all made decisions to bring back services from Capita.

 

Bring back Pension Service in-house from Capita

Dear Councillors

Please find enclosed latest Barnet UNISON Briefing on the Pension Administration service.

The in-house service was taken over by Capita in September 2013 and in 2014 all the staff were sacked as the service was sent to the Capita Pension offices in Darlington.

This services has been subject to ongoing concerns since 2014. The service has been reported to the Pensions Regulator twice.

My observations are that in spite of action lists being agreed the service has not even reached the levels before the outsourcing and more worryingly the reports at the recent Local Pension Board meeting reveal that it is now impacting on Pension 2019 triennial valuation:

“The results show a significant number of ‘critical errors’ that the administrators, Capita, will be required to address before actuarial calculations can begin.”

https://barnet.moderngov.co.uk/ieListDocuments.aspx?CId=753&MId=9712

The Pension Service is something that our members strongly support. The performance issues since Capita have taken over are causing great anxiety and anger from workforce.

This is why on behalf of all of our members I am asking that the Pension Administration Service is fast-tracked in terms of the current review of the Capita contracts. This is a failing service that desperately needs to be brought back in-house.

Best wishes

John Burgess

Branch Secretary.

Barnet UNISON

0208 359 2088

www.barnetunison.me.uk

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Not a member? Join Today at http://unison.org.uk/recruitment/  or by contacting the Branch Office 0208 359 2088

Barnet UNISON sends Capita Briefing Number 4 to all Barnet Councillors

Dear Councillor

Please find attached Barnet UNISON Briefing Number 4 which provides an insight into a number of decisions made by Southampton Council at the following Cabinet Committee meetings on Tuesday, 18th September, 2018 https://www.southampton.gov.uk/modernGov/ieListDocuments.aspx?CId=126&MId=3826&Ver=4 and Tuesday, 16th October, 2018 and the ongoing risks of a 18 month review of both Capita contracts.

Best wishes

John Burgess

Branch Secretary.

Barnet UNISON

0208 359 2088

www.barnetunison.me.uk

Barnet UNISON “Watch it & Share it”

Barnet UNISON Facebook

Barnet UNISON Twitter

Not a member? Join Today at http://unison.org.uk/recruitment/  or by contacting the Branch Office 0208 359 2088

View Briefing Number 4 by click link Briefing Number 4 – Southampton and

#Capita: Southampton Council & the risk of delays

“Southampton staff affected as council ends Capita deal.”

24 July 2018

“Capita has run Southampton’s customer services, HR pay, revenues and benefits, procurement, health and safety, print, post room and IT services for 11 years.”

https://www.bbc.co.uk/news/uk-england-hampshire-44937942

Barnet UNISON comment: There was no Council Committee decision publicly made before this announcement until Southampton Council held a Cabinet meeting on 18 September 2018. The report to Cabinet Committee was confidential and only the following was reported:

Cabinet: Tuesday, 18th September, 2018 4.30 pm

Update on Strategic Services Partnership

 Confidential report of the Leader detailing an update on the Strategic Services Partnerships.

Minutes:

(i)  The Service Director for Digital and Business Operations, after consultation with the Leader and Cabinet Member for Finance and Customer Experience, is authorised to commence formal dispute resolution proceedings over commercial disputes with Capita if required;

(ii)  Adult social care expenditure is included in the Procurement Guarantee for the purposes of the Council’s claim in the event of formal dispute resolution;

(iii)  A ‘no comment’ policy continues to apply while commercial negotiations with Capita continue;

(iv)  The Service Director for Digital and Business Operations is authorised to instruct Capita’s Procurement team to immediately begin procurement of a Revenues and Benefits system and any other systems or products deemed essential to the continued delivery of services to staff, Members and the public, to ensure no service interruption;

(v)  The Service Director for Finance and Commercialisation is authorised to highlight the financial risks posed by the Capita claim and the cost of an arbitration process as necessary in public budget consultation documents, which may need to set out what additional savings are required as a result of not reaching agreement with Capita.

https://www.southampton.gov.uk/modernGov/ieListDocuments.aspx?CId=126&MId=3826&Ver=4

The decision to end the contract with Capita was publicly reported the following month in the minutes of the Cabinet Committee.

Cabinet: Tuesday, 16th October, 2018 4.30 pm

UPDATE ON STRATEGIC SERVICES DECISION MADE: (CAB 18/19 21455)

On consideration of the confidential report of the Leader and Clean Growth and Development, Cabinet agreed the following:-

(i) Cabinet approved the recommendations set out in the confidential report.

https://www.southampton.gov.uk/modernGov/documents/s37129/Minutes.pdf

 

What happened next?

TUPE transfer negotiations are currently taking place with staff due to transfer back into Southampton Council by July 2019.

This will mean a large contract with Capita will be terminated and services transferred back to the Council within 10 months.

Barnet UNISON comment:

In our report to Policy and Resources Committee in December 2018 we identified serious risks with the prolonged 18 month review of both Capita contracts.

Feedback from our members of staff vacancies and changes are undermining morale.

It has become evident that vacancies on the Capita contract are not helping provide services for the Council or for residents.

 Capita: Commissioner and User satisfaction.

The table provided above by Barnet Blogger Mr Reasonable paints a worrying picture. Things are getting worse not better and it is not the union saying it, it is the “Users” and the “Commissioners”.

Barnet UNISON comment: It’s not working, Commissioners by their own admission are unable to hold Capita to account. Barnet Council needs to grasp the nettle and announce the end of both contracts and set out a clear transition plan for the return of services and their budgets.

Highways Service.

“Risk ID OP14: Insufficient staff in Highways: “Difficulties in retaining experienced and qualified Highways staff could lead to non-qualified staff being tasked to deliver specialised priority tasks resulting in poor delivery of tasks, non-compliance to statutory design requirements/standards, risk of Injury, insurance.”

(Source: Corporate Risk Register 20 February, 2019, Policy and Resources Committee https://barnet.moderngov.co.uk/documents/s51205/Appendix%20A%20Corporate%20risk%20register.pdf )

Barnet UNISON comment: This is a high profile service and we can confirm that this risk is still real. The prolonged delay on the decision to bring the service back under Council control is exacerbating the issues and the knock on negative impact will continue to be felt by residents.

 

To view flyer click here Briefing Number 4 – Southampton and

#Capita consultation only 2 weeks to go !

Dear Barnet resident.

I am writing to you as the Lead Barnet UNISON rep on behalf my members who work on the two #Capita contracts here in Barnet.

Barnet UNISON has campaigned for over a decade to oppose mass outsourcing to Capita. Sadly the outsourcing meant hundreds of redundancies as jobs were moved out of London. The issues with Capita were not just redundancies, service issues started to emerge across a large number of former Council services.

Barnet UNISON has been campaigning in the community for the past year to bring back services in-house following the collapse of Carillion and Capita’s dramatic share price fall last February 2018.

Following the serious fraud recently committed by a Capita employee the Council has reviewed both contracts and is in the process of bring back Finance and Strategic HR as from 1 April 2019.

However other Council services currently provided by Capita are now being reviewed to see if they should come back in-house.

Here are services currently provided by Capita

Phase 1 – Finance and Strategic HR (the focus of this TUPE consultation)

Phase 2 – Highways and Regeneration (review between Jan to Sept 2019)

Phase 3 – Barnet-based customised services – Estates, Social Care Direct, Safety, Health and Wellbeing , Strategic Planning, Procurement, Insight, Cemetery and Crematorium (review between Jan to Sept 2019)

Phase 4 – Revenues and Benefits, Customer Services, Information Services, Planning (Development Management) and Regulatory Services, transactional HR services (including pensions administration). Will form part of the Year 7 Contract Review of both contracts from September 2019 onwards.

Barnet UNISON is campaigning for all services provided by Capita to come back in-house.

I am encouraging all Barnet residents to take part in Barnet Councils Capita online consultation which you can access here https://engage.barnet.gov.uk/strategic-contract-review

The deadline to complete the consultation is Friday 15 February 2019.

It is really important that Barnet Council hears from residents about Capita.

There are 12 questions including some multiple choice and written responses.

In order to encourage and assist Barnet residents to complete the Capita online consultation I strongly recommend residents read this helpful guidance produced by Barnet Alliance for Public Services click on link below

https://drive.google.com/file/d/16sMdE3V9gA1peQ-5Gw1vS7HeqRcFI4aU/view

I have attached a info graphic produced by Barnet Blogger Mr Reasonable showing how many millions Barnet Council have already paid Capita.

Please complete the survey and let others know.

Best wishes
John Burgess
Branch Secretary.
Barnet UNISON

 

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