We have been told repeatedly that the Capita One Barnet Contract will save residents millions of pounds. The two main contracts and the forecast savings are as follows:
NSCSO (now called CSG)
Baseline (at December 2012) costs £38.8 million
Forecast costs savings £7.01 million
Procurement savings £4.69 million
Improved council tax collection £0.84 million
Total guaranteed saving £12.54 million
By my reckoning this means that Barnet should pay £26.26 million per annum
(Source: NSCSO Business Case Cabinet Meeting 6 December 2012)
DSG (now called Re)
Baseline (at June 2013) costs £14.2 million
Forecast cost savings £0.53 million
Increased income £3.38million
Total guaranteed savings £3.9 million
By my reckoning this means that Barnet should pay £10.3 million per annum
(Source: DSG Business case Cabinet Meeting 24 June 2013)
So if we look at the figures above this means that we should be paying Capita £36.56 million assuming they deliver all of the guaranteed savings. It may therefore surprise you that in the year 1 July 2013 to 30 June 2014 Barnet paid Capita £75,008,840.49. Yes £75 MILLION, £38.44 million more than we should be paying.
Even setting aside the £16 million of up front investment Barnet have paid to Capita (which should be factored back into the annual cost savings) that still means we paid £59 million when the cost of providing the service before outsourcing was only £53 million. Also bear in mind that Barnet have shelled out millions in redundancy payment, £8 million on Agilisys/iMpower, millions for agency staff as well as causing distress and heartbreak to hundreds of families that have suffered redundancy to push through these contracts.
At tomorrow night's Council meeting, Richard Cornelius will once again be selling the myth that Capita are saving Barnet residents a fortune in his response to a question from Alison Moore. I hope some of the Councillors present start asking whether these figures are real or just smoke and mirrors. The number don't add up Cllr Cornelius.