Sheffield Council: Why they decided to bring all services back in-house from Capita

To view Barnet UNISON Briefing Number 2 Part Two click on link below

To view Barnet UNISON Briefing Number 2 Part Two click on link below

“The current partnership agreement has a break clause in 2020 which would enable the Council to end the contract then and avoid the full impact of the termination costs and some of the exist costs. We have considered this option and discounted it because it would prevent us from making progress with our Technology 2020 Strategy in the required timescales. It would also mean that we would be continuing to pay for the ICT Service at the contractual rate for at least another year and we would miss the opportunity to take the savings earlier. Making a decision now would also impact the assessment of the remaining services (see paragraph 1.10).”
The following Barnet UNISON Briefing was sent to all Barnet Council Councillors

Barnet UNISON was bitterly disappointed to read that Barnet Council is now back tracking on a decision agreed at a Special Policy and Resources Committee on 19 July 2018.
The decision was to review the council’s partnership with Capita, and authorise the Chief Executive to develop a Full Business Case for all of the following Options:
“all three options should be fully tested, consulted on and considered in a Full Business Case before a final decision was made”
Barnet Council has now announced that only these services will be brought back in-house:
“It is intended that the report will recommend that Finance and Accounting (excluding transactional services provided from the Darlington shared service centre) and Strategic HR be transferred back to the council by the end of this financial year (March 2019).”
The announcement goes on to add:
“The arrangements for remaining services are still to be considered and timescales will be confirmed in due course. However, it is also likely that the report will recommend that Highways and Regeneration be reviewed as one of the earlier phases.”
The news may come as a surprise to our members, especially in light to recent fraud and the damning Grant Thornton report which is going to be discussed at the Audit Committee on 22 November.
However, Barnet UNISON is not surprised by the decision: this is Barnet.
Last week we sent a report to all Councillors on the Policy and Resources Committee entitled:
“How bad does it have to get?”
You can read our report here:
https://www.barnetunison.me.uk/wp/wp-content/uploads/2018/11/Capita-review-Barnet-UNISON-FINAL.pdf
The sheer number of Councils ending their contracts with Capita in 2018 is very worrying.
These big contracts are just as complex as the one in Barnet and often involve the same services that Barnet outsourced to Capita.
If Southampton, Sheffield, Blackburn and Birmingham can end contracts with Capita and still make savings then why can’t Barnet?
Barnet UNISON is not giving up on our aim to see all services brought back in-house.
This is why we are directly asking all of our members working for Capita this question:
“If you have any information, questions or concerns that you think we should know about, strictly in confidence, please make urgent contact with the Barnet UNISON office on 0208 359 2088 or email contactus@barnetunison.org.uk”
In the meantime take a look at this infographic below for 2018 only.

To read the review click on the link to our report Capita review Barnet UNISON FINAL


To: Barnet UNISON Capita members
On Monday 29 October 2018, Barnet UNISON received confirmation that Pension contributions have now been paid into Barnet’s Pensions Fund bank account.
We are now seeking responses to the following:
How did this happen?
Does it have am impact on any staff who have either left or retired in the last 18 months?
Why were staff not informed?
End.
Background:
For details as to what happened follow this link https://www.barnetunison.me.uk/wp/2018/10/26/barnet-unison-urgent-pension-information-update-26-october-2018/

This report is a collection of published online articles in 2018 that relate to Capita failure and organisations taking services back in-house.
Barnet Council is currently conducting a review of both Capita contracts.
However, history of decision making in Barnet leaves Barnet UNISON with a feeling of dread.
Barnet Council likes to be different, to buck the trend hence the easyCouncil model was pushed through despite the best efforts of Barnet UNISON and community campaigners and Barnet Bloggers.
In 2018 Capita issued a Profit warning which saw their Share price drop over the cliff literally days after Carillion collapsed. We now know Government were still awarding contracts to Carillion even when it was clear their share price was going through the floor.
Today 26 October 2018 Capita Share price is £1.20

Barnet UNISON call-out for people to give evidence at the #KickOutCapitaInquiry
If you are a Barnet resident or Barnet UNISON member and want to give evidence to the #KickOutCapitaInquiry in person or want to provide evidence but remain anonymous please
please email contactus@barnetunison.org.uk
Already a number of people have already registered their intention to submit evidence to the #KickOutCapita Inquiry which is being held at the
Please arrive early as there will be a queue for security checks.
Meeting is sponsored by Barnet Alliance for Public Services and Barnet UNISON
Chair: Aditya Chakrabortty Guardian columnist and senior economics commentator
Purpose of Inquiry
To hear evidence from residents, trade unions, politicians on what Capita has done in Barnet and elsewhere and end with a set of recommendations.
How you can help.
Background
A Capita employee managed to steal over £2 million from Barnet Council because neither Capita nor Barnet Council had control of financial matters.
www.bbc.co.uk/news/ukengland-london-45641513l
Barnet Council felt obliged to commission Grant Thornton to identify how such a large scale fraud was possible. This project could cost up to half a million pounds of tax payers’ money.
The review found no proper budgetary controls, no checking of basic banking details, inexperienced managers responsible for large amounts of Council money, no written financial procedures and check-lists.
Barnet Council agreed to pay Capita £252.54 million, but has already paid Capita £352.41 million with FIVE more years to go!
Barnet Council is in financial crisis with a budget overspend of £10.3 million this financial year and a funding gap of £66.8 million over the next three years.
Front-line services such as street cleansing, waste and recycling, libraries and social care are all facing more and more cuts that are already affecting Barnet residents.
Capita is having difficulty with its own finances
Their Share Price has dropped from £13 a share to under £1.50 a share in the last two years.
On 11th December 2018, Barnet Council Policy and Resources Committee will decide on whether to end both contracts. We are campaigning that they VOTE to end both contracts and begin the urgent process of taking back control of those services.
Support:
Please join #KickOutCapita campaign from 6 pm outside Hendon Town Hall,11th December, The Burroughs, Hendon NW4 4BG.
Please sign and share our #KickOutCapita petition here https://you.38degrees.org.uk/petitions/kick-out-capita-from-barnet-council-now

Dear Barnet UNISON members
Once again our Pension Administration service has failed and had to be reported to the Pensions Regulator.
“The London Borough of Barnet Council has reported itself to the Pensions Regulator after failing to produce 447 pension benefit statements on time.”
http://www.pensions-expert.com/DB-Derisking/Barnet-in-TPR-breach-as-Capita-misses-payments
This is second year in a row that this has happened.
Barnet UNISON has never known things to be this bad.
The in-house service never had these problems.
Furthermore the article reports:
“The committee also said that outsourcer Capita, which carries out a variety of services for the council and is the pension scheme’s own administrator, has failed to make requisite deficit contributions for the 2017-18 and 2018-19 periods of more than £2m.”
For all of our members who TUPED to Capita Barnet UNISON has written to Mark Dally today seeking urgent conformation that the pension contributions will be paid immediately and that a communication to all staff is conforming that fact.
Barnet Council is currently carrying out a review of both Capita contracts.
There are three options
The obvious question from our members is how is it possible that senior officers working on the Capita contract review can seriously recommend that Pension Administration service stays with Capita.
Barnet UNISON view is Option 3
If you have any concerns about your Pension and would like a one to one meeting please contact the Barnet UNISON office on 0208 359 2088 or email contactus@barnetunison.org.uk
Date: Tuesday 6 November 2018
Venue: Committee Room Corridor, House of Commons Westminster, London SW1A 0AA.
Time: 7pm
Organised by Barnet Alliance for Public Services and Barnet UNISON
Chair: Aditya Chakrabortty Guardian columnist and senior economics commentator
Purpose of Inquiry
To hear evidence from residents, trade unions, politicians on what Capita has done in Barnet and elsewhere and end with a set of recommendations.
Details: https://www.barnetunison.me.uk/wp/2018/10/16/barnet-kickoutcapita-inquiry-6-november-2018/

Date: Tuesday 6 November 2018
Venue: Committee Room Corridor, House of Commons Westminster, London SW1A 0AA.
Time: 7pm
Organised by Barnet Alliance for Public Services and Barnet UNISON
Chair: Aditya Chakrabortty Guardian columnist and senior economics commentator
Purpose of Inquiry
To hear evidence from residents, trade unions, politicians on what Capita has done in Barnet and elsewhere and end with a set of recommendations.
Background
A Capita employee managed to steal over £2 million from Barnet Council because neither Capita nor Barnet Council had control of financial matters.
www.bbc.co.uk/news/ukengland-london-45641513l
Barnet Council felt obliged to commission Grant Thornton to identify how such a large scale fraud was possible. This project could cost up to half a million pounds of tax payers’ money.
The review found no proper budgetary controls, no checking of basic banking details, inexperienced managers responsible for large amounts of Council money, no written financial procedures and check-lists.
Barnet Council agreed to pay Capita £252.54 million, but has already paid Capita £352.41 million with FIVE more years to go!
Barnet Council is in financial crisis with a budget overspend of £10.3 million this financial year and a funding gap of £66.8 million over the next three years.
Front-line services such as street cleansing, waste and recycling, libraries and social care are all facing more and more cuts that are already affecting Barnet residents.
Capita is having difficulty with its own finances
Their Share Price has dropped from £13 a share to under £1.50 a share in the last two years.
On 11th December 2018, Barnet Council Policy and Resources Committee will decide on whether to end both contracts. We are campaigning that they VOTE to end both contracts and begin the urgent process of taking back control of those services.
Support: