How the NHS wasted £16m of your money on a botched privatisation that collapsed within months

portrait-meghillier

Meg Hillier MP:,chair of the Commons Public Accounts Committee, condemned the failings in the scheme

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New ways of  helping the elderly and mentally ill survive in the community and not continually end up in hospital is a cornerstone of government policy.

So when a limited liability partnership offered a cash strapped  NHS commissioning group an initiative which promised better services for these people and could save them £178m over five years it sounded too good to be true.

The trouble is it was. As a devastating report from the National Audit Office reveals today the £800m scheme  ran into trouble just four weeks after it was launched and collapsed seven months later. You can read the full story on the Exaro website.

The scandal of the £800m scheme run by UnitingCare Partnership for Cambridgeshire and Peterborough clinical commissioning group may not be an isolated instance.That is why sources at the National Audit Office have highlighted it in their report – because it exposes an alarming lack of financial expertise inside the NHS and a flawed system to monitor whether projects like this are financially feasible  andcan  be properly checked.

The promised aim of the project was to establish  tapering payments to the partnership – with £152m up front and less money later, ¬ so that the financially challenged commissioning group could put money to better use.

But within four weeks of starting the contract the partnership was asking for an extra £34m, blaming a delay by the commissioning authority in starting the work. When the money was not forthcoming the scheme collapsed after eight months and the NHS was forced to provide services directly.

The NAO report reveals that despite employing reputable financial companies and lawyers, basic errors were made – including a failure to realise that sub-contractors could not recover the VAT from the partnership – a cost that had not been factored into the contract.

Auditors also report that nobody had overall oversight of the contract.

No wonder both Amyas Morse, the head of the NAO, and Meg Hillier, the Labour chair of the Commons Public Accounts Committee have been withering in their criticism.

Amyas Morse said: “This contract was innovative and ambitious but ultimately an unsuccessful venture, which failed for financial reasons which could, and should, have been foreseen.”

Meg Hillier said: “The result is damning: a contract terminated before the ink had even dried out, at an unnecessary cost of £16m.”

What is disturbing is that the NAO point out that Monitor, the body which checks health bodies, had no locus to check whether the scheme was viable and NHS England were too remote to act.”

The report says: ““No organisation was responsible for taking a holistic view of the risks and benefits of this approach, or considering whether the anticipated longer‐term benefits were sufficient to justify additional short‐term support.“

What is really disturbing  is that £16m was wasted -plus £8.9m  on setting up a complex tendering operation and start up costs.

Far better to have spent this extra money on patient and community care – instead of throwing our money down the drain on a scheme that anyone would have thought to be too good to be true.

 

How the government is allowing the Japanese to profit from captive London and Brummie commuters

 

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Earlier this month the Department of Transport extended its recommended list of bidders to run Britain’s railways to a privatised rail company in Japan.

It shortlisted East Japan Railway as a minority partner with the Dutch state rail company Abellio, in the consortium West Midlands Trains Ltd as one of three groups bidding to take over the West Midlands franchise next October. which provides commuter services into London and Birmingham including my home town of Berkhamsted.

But more significantly it decided that East Japan Railway would qualify as an approved bidder for any other franchise up for grabs until 2020.

The Telegraph presented  the bid as a move by a company at the cutting edge of technology as it provides some of  Japan’s bullet train services.

But anyone thinking those on the crowded commuter routes will be whisked in by a super bullet train service should think again.

The story is in fact the exact opposite once you study the company’s latest annual report.

What it shows is that the bedrock of the company’s regular income is its commuter services around Tokyo not its bullet trains. And the prospect for making any more money out of them is a tad bleak.

It reveals that the company is currently facing a downturn in its commuter services serving Tokyo partly caused by a declining population and is looking to expand abroad. It currently provides no services outside Asia – where it is helping develop a mass transit rail system for Bangkok and improve train services in Indonesia.

The annual report says: “Generally, Japan’s declining population is seen as unfavourable for the transportation industry. However, our performance in fiscal 2015 proved that, even in an era of population decline, we can grow revenues by steadily implementing various measures.”

These include developing stations and encouraging more retired people to use local trains as the number of commuters decline.

With lower fares in Japan than the UK, the move could give the operator access to the lucrative London commuter market and it could also offer its services to maintain and build new trains for the British market.

So in other words commuters using London Midland trains to get into Birmingham and London Euston will be contributing to  profits which can be repatriated to Tokyo to offset the declining  Japanese market.

Which makes an investment in London Midland a one way bet for the Japanese since the current Tory government will ensure fares rise every year and the growing population in the UK will all help boost profits.

I would not be surprised to see government ministers in the transport department helping themselves to directorships and consultancies with the company a couple of years after they have stepped down from their posts. After all they have done them a great favour.

I have written about this in Tribune. The three consortia bidding are:a consortium run by London and West Midlands Railway Ltd, a subsidiary of Govia Ltd (a joint venture between Keolis and Go-Ahead Group)’ West Midlands Trains Ltd, currently a wholly owned subsidiary of Abellio Transport Group Ltd with East Japan Railway Company and Mitsui & Co Ltd as minority partners; and MTR Corporation (West Midlands) Ltd, a wholly owned subsidiary of MTR Corporation (UK) Ltd which runs the Hong Kong rail system.

The new London Midland operator will take over in October this year.

So afraid of the Saudis: How the Brits daren’t cancel a contract to bolster barbaric justice

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Jeremy Corbyn has challenged David Cameron to explain why the British government can’t cancel a contract with the Saudis to provide training for their prison system just as it is about to execute a teenage dissident and crucify his body.

The Prime Minister who rightly does not spare a word in condemning Islamic State for its barbarism from throwing gay people off high buildings, and the public beheading of dissidents and hostages, is coy about financing the Saudis to behead its own dissidents or lash its social media bloggers like Raif Badawi.

Michael Gove, the new justice secretary, last week announced he was closing down Just Solutions International, the commercial wing of the Ministry of Justice that was flogging expertise to unsavoury regimes including Oman and the Saudis.

Except  that in its afterlife it will continue with a contract to Saudi Arabia,His decision reverses the policy of his predecessor, Chris Grayling, who was planning to expand its business as a way of raising revenue for the ministry without being particular about which regime’s justice system they were supporting.

The existence of Just Solutions International was revealed earlier on my own blog. So it i is good news that Michael Gove, the new justice secretary,is closing it.

This is a secretive organisation that the ministry refused to reveal any details about – despite admitting there are 2000 emails about its operations. A splendid thorough investigation of the background of the company’s bid for Saudi Arabia has been written up by David Allen Green on his Jack of Kent blog.

I have also written a story for Tribune highlighting how ministers are admitting that the real reason they have not cancelled it is because in Andrew Selous’s words -( he is the junior minister at the Ministry of Justice) – “The critical factor was the strong view from across Government that withdrawing at such an advance stage would harm HMG’s broader engagement with Saudi Arabia.”

This replaced the phoney reason originally given to Parliament which ministers had to withdraw that it couldn’t be cancelled because the government faced penalty clauses. Despite that it is still reported in some media that this is the reason.

This is an appalling situation and the fact that Jeremy Corbyn linked this to the case of teenager Ali Mohammed Baqir al-Nimr who will be beheaded for a ” crime ” he committed when he was 14  deserves highlighting.

He wrote: “Will you step in to terminate the Ministry of Justice’s bid to provide services to the Saudi prisons system – the very body, I should stress, which will be responsible for carrying out Ali’s execution?”

The Labour leader concluded: “Ali’s case is especially urgent – the secrecy of the Saudi system means that he could face execution at any time, and even his family may only find out after the event. There is therefore no time to spare in taking this up with the Saudi authorities, if we are to prevent a grave injustice.”

Not only should he take this up  and the Foreign Office has said it will – but this contract should not go ahead. Britain should not dirty its hands with aiding a regime that imposes such cruel punishments anymore than it should support the Islamic State.

In Britain the National Audit Office ought to look at the setting up of Just Solutions International and decide whether this experiment in commercialising a department was ” value for money”..This should then be taken up by the Commons public accounts committee.

The secrecy around this is totally unjustified and it appears only Parliament can properly investigate it.

Revealed: The Treasury mandarin who said losing £1bn for the taxpayer was value for money

john kingman, second Permanent secretary at The Treasury Pic Credit: worldellows.yale.edu

john kingman, second Permanent secretary at The Treasury Pic Credit: worldellows.yale.edu

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There has been enormous outrage about the £1bn loss to the taxpayer caused by the sale of the first tranche of Royal Bank of Scotland shares. An article in The Guardian on August 4 reported not only expected criticism from Labour but concern from a banking analyst that the share price of RBS was too low to justify the sale.

What was only briefly mentioned was that the second most powerful mandarin in the Treasury had also given the go ahead. You might expect him to bow and scrape to the Chancellor but actually he has more powers than you might think and he needn’t have followed his instructions.

If an accounting officer believes that a government minister is about to make a decision that will lead to a big loss to the taxpayer he can refuse to approve the action.

These actions are not taken lightly – one of the most recent examples being the refusal by Richard Heaton (soon to become Permanent Secretary at MoJ) who requested one, on value for money grounds, on 26 June over extra funding for the Kids company charity. He was overruled by ministers who have now seen to have made a big mistake as recent coverage reveals.

John Kingman could have done the same thing. He would face being overruled by George Osborne but it would have caused a furore and triggered an eventual Whitehall investigation.

John Kingman Letter Instead as this letter above shows he has positively embraced the sale.

“ I am satisfied that a sale at this time would offer good value for money for the taxpayer and meets all other requirements in accordance with the principles of Managing Public Money,” he wrote to George Osborne.

Really?  Now John Kingman is one of the cleverest mandarins in Whitehall. He hates holidays, lives in Leicester Square and one former colleague describes him in these words: “His arrogance is only marginally ahead of his considerable intelligence, whereas with most ambitious men of his ilk the gap is rather larger.” A profile in 2009 by political editor George Parker in the Financial Times says it all.

He writes “If he can achieve the goal of unwinding the taxpayer’s stake ( in RBS) at a profit, his route to the top of the civil service is clear, even if some question whether he has the patience to manage such a huge, traditional organisation. “

Well at the moment he hasn’t – he has acquiesced in a £1 billion tax loss. And I am not the only one who has noticed this.

The National Audit Office, Parliament’s financial watchdog, which reports on state asset sales, confirmed to me “We are watching the situation”.

They will have to make a report on this. This will lead him to have to appear before the House of Commons public accounts committee to justify why he approved what was done.

No doubt the government would like Parliament to take its time – perhaps not report until the entire sale is over – but that won’t be until 2020.

I say the huge loss to the taxpayer should not go unchallenged for years. Bring it on now!

Exclusive: Michael Gove faces High Court action over selling legal services to aid Saudi beheaders and torturers

Michael Gove: Facing a High Court challenge over selling services to the Saudis

Michael Gove: Facing a High Court challenge over selling services to the Saudis

Tomorrow the High Court will receive an application from  the Gulf Centre  for Human Rights to bring a judicial review over the Justice Secretary’s decision to bid for commercial work from the Saudi Arabian government because of the regime’s appalling record of public beheadings, torturing dissidents and flogging bloggers like Raif Badawi.

The case against Michael Gove is a legacy from his predecessor Chris Grayling but is linked to an appalling case of torture against a Saudi Arabian -simply known for his own protection as AB.

The Gulf Center, a non governmental organisation based in Beirut and Copenhagen, defends independent journalists, lawyers and bloggers in the Middle East, is applying to take over the case  started by AB after it appears the Ministry of Justice retrospectively removed legal aid from him.

Central to the case is the shadowy and secretive (we know this as it vigorously finds any way not to release information) Just Solutions International, a commercial arm of the Ministry of Justice set up by Chris Grayling.As readers of this blog and those who follow the excellent  Jack of Kent aka lawyer David Allen Green will know – Just Solutions has an unenviable reputation of providing services to dodgy regimes and has a £5.9m bid for Saudi work at the moment.

The centre’s lawyers  want leave from the court to challenge whether the organisation has complied with official Whitehall guidelines before bidding for the contract and also whether Michael Gove or his predecessors  has acted illegally by creating this commercial organisation without any Parliamentary approval.

Their case cites information from  government documents on this blog and Jack of Kent’s blog. We have been separately pursuing the ministry over related issues.What they have found out is that there are no public documents saying that it followed the coalition’s  Overseas Judicial and Security Assistance guidelines.

These restrict all government departments from bidding for work from regimes which breach human rights if the Government’s reputation is damaged or is a serious risk to aiding or significantly increasing human rights abuses.These are spelled out as regimes that unlawfully detain people, have the death penalty, torture people and limit freedom of expression. Saudi Arabia ticks nearly very warning box.

Baroness Anelay: Saudi people want floggings

Baroness Anelay: Saudi people want floggings

Until now the standard response has been that this help is meant to help improve standards. that is until a comment from  foreign office minister Baroness Anelay in reference to the flogging of Raif Badawi in the Lords : ““My Lords, I think we have to recognise that the actions of the Saudi government in these respects have the support of the vast majority of the Saudi population.”

Melanie Gingell, a member of GCHR’s advisory board, said:: “It seems to us that far from improving human rights standards in the detention systems of these  regimes, the UK is more likely to be simply improving the efficiency of the systems within which these notorious abuses are being carried out.  The British public has been horrified by the public beheadings and floggings carried out in Saudi Arabia, and now mirrored by ISIS, and they have a right to know exactly what role the UK government is playing in these systems.”

She added, “We fear that the driving motivation behind these bids is purely commercial, and the veil of secrecy that has been drawn over them simply serves to deepen our concerns that the UK is making money out of the worst aspects of these regimes, that it condemns in public, but is happy to give support to in private.”

Deighton Pierce Glynn Solicitors (DPG) are acting for GCHR.  Adam Hundt, a partner at DPG, stated: “It is surprising that JSi’s activities have taken place shrouded in secrecy, and without parliamentary debate or approval.  If the UK is to sell its public services to regimes that behead people for sorcery, stone women to death and flog people for expressing pro-democracy views, then one would expect our Parliament to be consulted and given the opportunity to impose appropriate parameters on such activities.”

A campaign to crowd fund this action has also been launched by the Gulf Centre for Human Rights. The link is http://www.gofundme.com/saudiprisons 

A4e: Six jailed in £300,000 fake job fraud scam

A4e: Improving People's lives -and defrauding the government

A4e: Improving People’s lives -and defrauding the government

The scandal that rocked A4e, the private contractor condemned by the Commons Public Accounts Committee, for fiddling the books, hit home this week.

Six people were given jail sentences and another four were given suspended sentences by a judge at  Reading Crown Court.

The BBC reported here yesterday the sentencing by the judge. The scheme as reported earlier on this blog involved mentoring single parents – some of the most vulnerable in society so they could get work. But the £1.3m Aspire programme turned out to be a vehicle for fraud by the staff.

The court was told  staff made up files, forged signatures and falsely claimed they had helped people find jobs, enabling them to hit targets and gain government bonuses.

Judge Angela Morris said there had been a “systematic practice” of compiling bogus files over a “considerable period of time”, behaviour which she described as “appallingly cavalier”.

She said: “No amount of pressure justifies the wholesale fabrication of information in files or the forgery of other people’s signatures on documents, all of which is designed to extract money from the Department of Work and Pensions.”

The roll call of fraudsters are:

  • Charles McDonald, 44, of Derwent Road, Egham, Surrey, pleaded guilty to six counts of forgery and one of conspiracy to commit forgery. He was sentenced to 40 months in prison.
  • Julie Grimes, 52, of Monks Way, Staines, Surrey, pleaded guilty to nine counts of forgery. She was sentenced to 26 months in prison.
  • Nikki Foster, 31, of High Tree Drive, Reading, pleaded guilty to nine counts of forgery, and was jailed for 22 months.
  • Ines Cano-Uribe, 39, of Madrid, Spain, was found guilty of one count of forgery and one of conspiracy to commit forgery. She was jailed for 18 months.
  • Dean Lloyd, 38, of Rochfords, Coffee Hall, Milton Keynes, pleaded guilty to 13 counts of forgery. He was given a 15-month jail sentence.
  • Bindiya Dholiwar, 29, of Reddington Drive, Slough, pleaded guilty to seven counts of forgery, and was jailed for 15 months.
  • Zabar Khalil, 35, of Dolphin Road, Slough, was found guilty of one count of forgery. He was given a 12-month sentence, suspended for two years.
  • Matthew Hannigan-Train, 31, of Westacre Close, Bristol, was found guilty of one count of conspiracy to commit forgery. He received a 12-month sentence, suspended for two years.
  • Hayley Wilson, 27, of Middlesex Drive, Milton Keynes, was found guilty of one count of conspiracy to commit forgery. She was given a 12-month sentence, suspended for two years.
  • Aditi Singh, 32, of Albert Street, Slough, pleaded guilty to two counts of forgery and one count of possessing items to commit fraud, and received a 10-month sentence, suspended for two years.

However less we forget the Department for Work and Pensions was severely criticised in a Commons public accounts committee report for failing to conduct checks on what was going on with A4e at the time – and the company was only investigated because whistleblowers came forward about what was going on.

Chris Grayling, then the minister responsible for employment, took no action to investigate further either. As the PAC said at the time in a report  on A4e and other programmes the DWP never looked at whether A4e was ” a fit and proper contractor” to run other programmes.

A4e chief executive Andrew Dutton said  yesterday the company has a “zero-tolerance policy” towards fraud and money had been set aside so “the taxpayer will have lost nothing” from the scam.

Mr Dutton said: “Their claims do not reflect the way this company operates, or the values of our 2,100 staff, whose honesty and integrity are much-valued.”

I remain to be convinced whether the company has truly reformed.

Is Whitehall still letting profit hungry contractors off the hook to rip off the state?

Chris Grayling: His £400m gift to contractor's profits sparked a pathetic clampdown pic courtesy: BBC

Chris Grayling: His £400m gift to contractor’s profits
sparked a pathetic clampdown pic courtesy: BBC

Remember the major row over  justice secretary Chris Grayling’s “poison pill ” contract to privatise the probation service. This allowed  the successful bidders to walk away with up to £400m profit on a ten year contract should an incoming Labour government have the temerity to cancel it if they won the next election.

Grayling  not so innocently said that this was just normal Whitehall practice. Margaret Hodge, the chair of the Commons public accounts committee said it was “It is not value for money. It is unacceptable and must be challenged before the event.”

She demanded something be done and now the Treasury have responded. They have written to every accounting officer of every ministry and every government agency laying down new guidelines. You can read the letter here and see my news article in Tribune this week.

In my view the response is particularly pathetic and certainly not nearly hard-hitting enough to protect taxpayer’s money.

Of  course accounting officers are reminded that they must consider value for money and must be able to justify such decisions but it does include some  remarkably helpful  “get out “clauses that allow such deals to continue.

One  says they should consider: “whether it is likely that, if the public body terminates the contract for policy reasons, the supplier would have a legal case to claim even without the clause being in the contract.” Well it might but I would be amazed if a judge allowed them to keep all projected profits.

They are also expected just to ask rather than instruct companies “whether the market be willing to bid without such clauses, particularly when outsourcing for the first time, or establishing a new market.” And they should ask whether such a deal is “normal practice in this area of business.”

To me this seems an open invitation for private contractors to say, of course it is, where if they had a private contact with another private firm, they would lucky to get all the money back if the other company just collapsed.

It is only that the Government cannot go bankrupt that they are in a position to negotiate such terms.

Now of course accounting officers could refuse to sign such one-sided contracts in the first place and demand the minister in charge directed them to do so. But in fact remarkably few permanent secretaries and chief executives  ever do this. They can be counted on the fingers of one hand in any financial year.

Once again this coalition government is running the country for the benefit of private companies not for the taxpayer or even to the benefit of the ordinary public.

 

 

Ever play bingo, go to the pub,do shopping: no patient transport for you

Campaigners for better patient transport at transportforall assembly in London on October 7 pic credit: Christa Holka

Campaigners for better patient transport at transportforall assembly in London on October 7 pic credit: Christa Holka

A damning report, Sick of Waiting  by the transportforall, the excellent body campaigning for disabled people to have proper access to transport across the capital, reveals what everybody thought but nobody knew: disabled people have a lousy patient transport service in London.

As I report in this week’s Tribune magazine a survey of 200 disabled patients found that 37 per cent had missed an appointment due to failures by patient transport and almost half had arrived late for appointments over the past two years. Nearly all of this, as the report shows, was provided by newly privatised services.

A staggering 90 per cent had never been told that they could be eligible for financial help to get to hospital under the Healthcare Travel Costs Scheme while more than half were never told about patient transport when they booked an appointment.

But the health trust that really took the biscuit was Hillingdon Hospital Trust.Not only did they provide one of the worst personal examples of being ultra unhelpful – but they revealed that they had a questionnaire to weed out those they did not want to provide patient transport.

The personal case involved Robin who had previously been taken to hospital by a brother and Hillingdon expected this to continue. But the brother had moved to Spain. And guess what, Hillingdon expected him to come back and take her ( no doubt quoting cheap flights by easyjet – I made that latter point up!)

But the most extraordinary example was the disclosure through a freedom of information request was a questionnaire used by Hillingdon to assess whether people should get patient transport in the first place.

This included the questions ” Do you go shopping?” and “do you ever (my emphasis) go to the pub/cinema/ bingo? ”

I put this to the press office of Hillingdon and they replied: “The Trust does not discriminate against any of its patients. On occasion – for example where someone is very clearly able-bodied – the hospital’s transport team will ask people how they usually get around.

“This is to see if they are capable of getting to and from hospital without using patient transport as we want to ensure this valuable resource is available for those that really need it. This is in line with guidance from the Department of Health.”

I then sent back their own response to the FOI which listed the questionnaire they gave to ALL patients requiring transport. And the press office admitted they didn’t even know about it when they replied disclaiming the story.

They promised the transport manager would respond. And then they found he had taken leave of absence. So might I if a pesky journo was asking embarrassing questions about a dodgy practice.

Perhaps Hillingdon is overrun with bingo playing, binge drinking, shopaholics all demanding hospital appointments, but I very much doubt it.

Of course not all trusts were as bad as Hillingdon. The report praised Guys and St Thomas’s NHS Foundation Trust for its excellently managed patient transport service and the Royal Marsden came out well.

But far too many didn’t and some of the stories of the way disabled people were treated were callous and heart breaking.

Transportforall is laying down a new patients charter, demanding minimum standards, minimum waiting times and real transparency about the services provided by the private  and public sectors. Nor is this confined to London. The report cites problems in Kent, Manchester,Dorset, Devon, Cornwall, Coventry, Somerset, Lincolnshire, Derbyshire, Leeds and Suffolk..

It is time this issue went right up the political agenda. As the report says:” a national solution is needed”.

What about it, Jeremy Hunt and Andy Burnham?

 

 

 

Reflections on Labour: Two women who could help change Britain

Margaret Hodge; A practical route map for Labour

Margaret Hodge; A practical route map for Labour

The most exciting part of political conferences is not the main conference hall but the fringe. It is here that people are much more likely to speak their mind and real issues are debated – not set piece presentations ( even if Ed Miliband forgot a bit of his!).

Two totally unreported contributions came from two of the more feisty women in the Labour – both with strong views.

Angela Eagle, shadow leader of the Commons, chair of the conference and the national policy forum made a refreshingly off message analysis of present British society and where it is going.

Speaking at a Unite union fringe organised by Class (Centre for Labour and Social Studies)- analysing the rapidly widening gap between the mega elite and the ordinary worker – she actually described the present situation in society as ” immoral”.-pointing out that  top directors now earn 130 times more than their workforce.

She also defended benefit claimants -pointing out that the media campaign labelling or libelling them all as scroungers – had meant ordinary people coming to her Wirral surgery were wrongly put on the defensive just because they were claiming from the state.

Angela Eagle providing Labour with a  moral compass. Pic credit: The Guardian

Angela Eagle providing Labour with a moral compass. Pic credit: The Guardian

She was on a platform where the speakers were firmly of the view that the present economic situation was unsustainable, companies were hoarding money rather than investing and people could only spend by getting more into debt.

It shouldn’t be surprising that you hear such views at a Labour conference, but it is surprising these days to hear such comments from a member of the shadow Cabinet.

The second feisty contribution came from Margaret Hodge, chair of the Commons public accounts committee. She was speaking on a different platform with the Policy Network Here the issue was how Labour could make a difference by accepting the present economic situation and using public money more effectively.

Superficially  you might think the two women were on  different planets but actually they complimented each other.

Margaret Hodge, with enormous experience of investigating Whitehall scandals, tax avoidance and the dodgy behaviour of private companies providing public services, had a practical route map on how Labour could handle this.

Her solution including forcing the companies to become transparent with the way they spend or misspent our money, using public procurement to secure the living wage for all workers, clamping down far more effectively on tax avoidance including collecting the taxes, and looking at radical five-year plans to innovate public services, rather than the Treasury knee jerk reaction top impose cuts with three months notice.

Ed Miliband would be mad if he did not appoint her to head a new unit with oversight of public contracts if he wins the election – she could then insist on implementing this programme rather than report on the messes left behind by the private sector.

He would also be mad not to promote Angela Eagle into a job where she could influence the direction of public spending. Both women  have enormous talents. Angela provides a moral compass, Margaret a practical route map  out of an increasingly unfair society.

 

 

 

Pass the sick bag not the pop corn: US verdict on DWP’s privatised sick note service

Last week I revealed how Lord Freud, the welfare reform minister, had awarded a new contract to Health Management Ltd, subsidiary of US multinational company, Maximusto take over from doctors  to decide when you should return to work if you claim more than four weeks sick pay.

The programme is to be rolled out from November to next May aims to save up to £165 million a year by getting people back to work faster as part of Lord Freud’s welfare reforms. Effectively it will mean you will get a telephone consultation  from a call centre and be emailed when you should return to work. If don’t co-operate you will lose your benefit.

The company’s press release reveals the 63 month contract will be rolled out first in Wales, the Midlands and the North before it hits the more affluent South.

Richard A  Montoni, the multi billionaire chief executive explained:“The Health and Work Service program is a natural opportunity to demonstrate Health Management’s expertise as the UK’s largest occupational health care provider and an important step in our long-term goal of expanding in this important market.

“While we expect an initial start-up loss due to the nature of the contract, the overall program economics are strong and once ramped, the contract is in-line with our targeted range of portfolio performance.”

Now through using a website called Glassdoor I have discovered what employees and ex-employees in the US think of Maximus. If you feared it was going to be a cheapskate alternative to your GP – aimed at using low paid, untrained, overworked people in call centres while maximising its profits for overpaid bosses you are right..The customer or claimant seems the least of their concerns.

These are a selection of their comments:

“When starting the business I asked for instructions on how to complete basic daily administrative tasks essential for audit. I was told by my colleagues and my manager not to bother as “we never do it”. Six months later, after figuring out, off my own back how to do it, Head Office comes down like a tonne of bricks on the office stating they have not been done and have failed audit. On top of this I worked with racist, homophobic and disgruntled colleagues who were obnoxious, lazy and didn’t give a damn. My line manager refused to verify my work as he was too lazy

“Management has absolutely no people skills. Little to no room for advancement unless you are related to a director. Unqualified employees are in management positions.”

“Almost everything in my team was micro-managed. One of the Directors was a control-freak and insecure about “loosing his relevance”. So “just to stay relevant” he created “red-tape” processes by making every small change go thru him with his approval, causing delays to routine work cycles.

“Managers and supervisors only care about bonus for themselves.Representatives can easily be disqualified for bonus. There is also too much favoritism among employees. Promotions happen on the basis if they like you or not and not so much on your qualifications. Some managers like to micro manage their staff by setting excessive production goals. Supervisors are under-qualified and possess little to no people skills.

“At MAXIMUS there is little to no room for advancement or growth. …This company makes unreasonable demands for staff to complete work and unreasonable deadlines. This company does not support personal time off due to family/personal issues.” (so they won’t sympathise with you if you are sick)

“No work/life balance. Projects are incredibly understaffed, combined with perpetually tight deadlines, resulting in an average work week of 60-80 hours. Long nights and lots of weekends.

“Upper management often promotes with in their own inner circle and rarely promotes anyone from operations. Most management has little to no hands on experience and are typically hired because they come cheap or are hired by someone they know.”

Of course not everybody is critical. There are some pro company pieces but they are mainly because evidently the firm offer free medical insurance ( not an issue here yet!), the commute to work was easy and some of the colleagues were good mates.

As one said: “Fairly normal work hours, decent training, clean environment, clean restrooms, free coffee, good feelings from helping people when all goes smoothly, being able to trade shifts with other workers, getting paid every week as a temp, working independently.”

and as a plus “On Fridays we have someone come to our desks with free bags of popcorn.”

No doubt that makes everything fine I think if half of this is true it more a case of pass the sick bag than the pop corn!