Wednesday, 28 September 2016

Ministry of Justice work could be worth billions of pounds to landlords

Stonham to bid for probation contracts

A housing association will bid for multi-billion pound probation service contracts when a government outsourcing scheme launches in August.

In the latest example of associations expanding into new sectors, Home Group’s care and support arm, Stonham, will bid alongside giant security firms and public sector contractors to take full control of the management of medium to low-risk offenders in several regions. They are yet to specify which regions, or how many they will bid for.

The Ministry of Justice is in the process of transferring work with offenders who have spent less than 12 months in custody to the private sector.

The department is splitting England and Wales into 21 regions, each of which will be managed by a single ‘prime’ operator, which will have overall responsibility for the region, and will bring in sub-contractors to help deliver the service.

Stonham is planning a bid for at least one of the contracts to become a prime regional provider.

Rachael Byrne, executive director for care and support at Home Group, said: ‘Stonham has always worked with offenders, so it’s a natural progression for us. We already have bail contracts, and this is really just a way of extending that work.

‘It is a challenging step, and a new step, but not a step to be fearful of. It is about providing housing and support to vulnerable people, which is a core part of our mission statement.’

She added that Stonham has operations in all 21 regions, and would consider bidding for any of them.

The association will complete and return a pre-tender questionnaire by August, and will find out whether it has won its bid in spring next year.

The MoJ values the contracts at between £5 billion and £20 billion over a 10-year-period.

Stephen Hughes, a partner at Bevan Brittan, which advises on the outsourcing of major public sector contracts, said: ‘The programme is looking for support in three principal areas: housing, unemployment and drug and alcohol abuse.

‘The engagement of registered providers is an essential ingredient in what will be a complex programme. This definitely marks a new direction of travel for the industry.’

Readers' comments (4)

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

Related

Articles

  • Hightown takes on support services contracts from Radian

    18 July 2016

    A Hertfordshire-based landlord has taken on 30 care and support services from another association.

  • NIHE repairs contracts announced

    8 July 2016

    The Northern Irish Housing Executive (NIHE) has named four contractors to carry out up to £1bn of repairs across its 87,000 homes over the next 10 years.

  • Contracts may need to be altered post Brexit

    28 June 2016

    Housing associations have been told they may need to increasingly alter their asset management services contracts in the wake of political and financial instability caused by the UK’s forthcoming exit from the EU.

  • Water company to redraw contracts

    22 June 2016

    A major utility company is redrawing a new “model contract” with up to 70 social landlords following a ruling that could leave tenants owed millions in water bill repayments.

  • Housing contracts boost Mitie profits

    23 November 2015

    Mitie has reported a 32.7% increase in pre-tax profit in its property management business despite a drop in overall profits.

IH Subscription