The March supplier payments have just been published and we now have a clear picture of payments for the whole financial year to Capita. Between the two contracts, CSG and Re, Capita have received a total of £66.3 million. That is up £14.5 million on last year's payments, a 28% increase.
The budgeted cost was £41.7 million so the extra £24.6 million is for other payments including special projects and gainshare. At a recent committee meeting it was conceded that on some of the Special Projects we are paying consultancy rates for work that would have previously been done by salaried council staff. The core contract is cheaper but we pay for everything over and above that contract and that is where Capita make their money.
One of the other massive overspends is on the interim and agency staff contract with Comensura.
Back in 2012 the contract was costing us £12.5 million but it was at a time when the council was in the midst of the outsourcing process and staff were leaving to avoid being made redundant. With the appointment of Capita it was anticipated that the agency staff costs would fall but in reality they have done the opposite. This financial year they have hit an all time high of £17.9 million. Last year I said this was a contract out of control and sadly that has proved the case. To make matters worse Comensura is on of the contracts on which Capita are paid gainshare. They are supposedly saving us money for which Barnet pays them a hefty share, now in excess of £1 million.
In total, since the start of the Capita contracts in 2013, they have been paid a total of £173,384,365.48 Yes £173 million in just two and a half years.
Yet again, I repeat my challenge to Richard Cornelius in that I will pay £250 to the charity of his choice if he can show me how this contract with Capita is saving us money.