Question 75 (Mr Field): Savings from the renegotiation of the contract with Capita

At question 75, Frank Field asked for details of the total savings arising from the renegotiation of the contract with Capita. As I indicated in answer to the question, we have secured, effective 1 October this year, a reduction of just under £1 (the exact figure is 96 pence) in the price paid to Capita for processing each Disclosure application. Over the remaining 71/2 years of the contract, this represents an estimated saving of £17 million. Capita now has payments underpinned by guaranteed volumes, agreed on a biennial basis. In addition, the revised contract includes provision for the equal sharing of any future cost savings achieved by Capita to their side of the operation, and realigns the contract to reflect the changes to the Disclosure service since the original contract was signed.

Leigh Lewis CB
Permanent Secretary
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30 March 2004