Originally Posted by Kanga
The problem is the long term cost; if all these services are inhouse and provided by the LAs and central government, there are the ancillary costs of Civil Service pensions (non or minimal contributions by employees) plus index linked salaries on a defined pay scale.
Did the programme look at the comparison of these costs at all?
The other problem is the complete lack of any business acumen within these huge organisations such as the NHS. They don't seem to have any idea about making deals and getting together to bulk buy.
The programme covers the bases Kanga, identifying how widely practised contracting out has become across the board. They also highlight some of the very poor & expensive services being provided.
PWC services are initially to contracted to identify where 'costs' can be cut, (don't know who's recommending PWC to them all) staff, working from a template scenario, they just change the name of the LA with each contract. The aim is (it seems) to make themselves look very useful to entice LA's into broader contracts where they then also take a % of any monies saved...... McKenzie's were used to produce the costly & disastrous Top-down report on the NHS.........
I've just come across another service that's being contracted out & fast becoming a privatised industry - Fostering & Adoption! A company that set themselves up as a registered Charity is now contracted by several LA's across the country to provide (at least) part of this service for them. This apparently frees up the Social workers time to concentrate on more time-consuming cases....
This 'Charity' is now involved with 'placing refugee children' in foster homes. They have also signed a contract to provide Peterborough LA with some of their Fostering services - The Same council who just recently agreed to house the already homeless in houses where the tenants are being evicted to make room for the already homeless............
There's a short radio interview with a representative of this company at the end of this link: